Rental lease variations

Leases may be varied in certain circumstances, however they cannot be varied to extend the terms.

Variation of rental leases

The Authority must not execute a variation of a rental lease unless all rent, including additional rent, has been paid up to the date of the variation. If a variation is executed, the Authority must reappraise the rent payable under the lease following the method provided by the lease. The reappraised rent is payable from the day the variation is executed. The reappraisal of the rent is not done if the variation is to reduce the rent to a nominal rent or otherwise affects the rental provisions of the lease.

Where the Authority agrees to the variation of a lease and for which rent is payable, it will determine the amount of rent to be paid by the lessee and give the lessee written notice of the amount determined.

Nominal rents

A lease will not be varied to reduce the rent payable to a nominal rent (5 cents per annum) unless the lease is included in a prescribed class of leases, all rates and land tax are paid, all provisions in the lease requiring the lessee to develop the land have been complied with, and the lessee has paid an amount decided by any policy direction of the Minister. If a lease is varied to reduce the rent to a nominal rate, the varied lease must state that the lessee is to pay the nominal rate each year if and when that rent is demanded.

Relief from compliance

Lessees may apply to the Authority for temporary relief of compliance with any covenant in the Crown lease, including payment of rent covenant. Relief is not a waiver of rent.

Variation of rent (re-appraisal)

Where the rent payable under a lease has been varied, the variation will come into operation 20 working days after the day on which the notice of the variation is given or on a later day if specified in the lease.

Reviews of rent variation

Where the rent payable under a lease is varied, and the lease does not include a provision for the arbitration of differences between parties as to variation of the rent, the lessee may, not later than 20 working days after receiving the written notice, request that the variation be reviewed by the Authority. The request for a review of the variation does not affect the operation of the variation or the lessee’s right to appeal the decision to the Administrative Appeals Tribunal. Reviews of variation may result in the Authority confirming the variation or setting it aside and substituting another variation.

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