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Important information for Landlords & Tenants regarding Make-Good

Make-Good rights and obligations are an important aspect of leasing for both Landlords and Tenants.

Landlords are often entitled to enforce their rights by requiring Tenants to comply with the Make-Good provisions when the Lease ends.

The Make-Good provisions should clearly define the condition in which the premises must be returned to by the Tenant at the end of the Lease.

Typically this means that the premises must be returned to the same condition that the premises was in at the commencement of the Lease, excluding fair wear and tear. [...]  READ MORE →

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Lease Incentive Deeds and Tenant Default.

Many retail and commercial transactions for landlords generally provide an Incentive for Tenant’s to enter into a Lease.

What is an incentive?

Standard Lease Incentives can include Landlord’s contributing towards the cost of the Lease fit out works / improving the premises, rent free periods, rent reductions over the term of the Lease.

Most Incentive Deeds, being separate to the Lease agreement, will also include a Clawback Provision – which allows a Landlord to demand payment for the incentive amount (reduced rental payments) in the event of default by the tenant of a term of the Lease. [...]  READ MORE →

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Leases – Heads of Agreement

A Lease Heads of Agreement is an essential first step in entering into a Lease, whether that be a retail or a commercial lease agreement.

There are several key essential commercial terms that should always be included in the Heads of Agreement, which is typically prepared by the agent acting for the Lessor / property owner.

Once the Heads of Agreement is agreed, a formal Lease is prepared and signed by the parties.

The parties can still negotiate the terms of the Lease which are not included in the Heads of Agreement terms. [...]  READ MORE →

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Important information for Landlords & Tenants regarding make-good

Make-good obligations are a very important aspect of commercial leasing for both landlords and tenants. Landlords are often entitled to enforce their rights by requiring tenants to comply with the make-good provisions when the lease is about to end. These provisions, when drafted carefully in the lease, should clearly define the conditions in which the premises must be returned. The provisions should ensure the protection of the landlords’ investments and set out the extent of the tenant’s obligations in that regard noting that these works can be very costly for either (or both) parties. [...]  READ MORE →

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Reverse Mortgages – An Alternative to Downsizing?

A reverse mortgage involves a secured loan which gives the lender an interest in the unencumbered value of your home (being the market value of your property, less any debt secured against that property), commonly known as the “equity” in your home. Accessing funds through this type of loan is used by some retirees as an alternative to downsizing.

How it works

Put simply, under a reverse mortgage loan a lender agrees to advance money to you in consideration for an interest in the equity of your property, proportionate to the loan amount. [...]  READ MORE →

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Unjust strata by-laws and unreasonable strata levies

There is a recent Supreme Court decision concerning unjust clauses in a strata exclusive use rights by-law and also concerning unreasonable strata levies.

In case of Perpetual Corporate Trust Ltd v Owners Corporation SP6534; El Khouri v Owners Corporation SP6534 [2024] NSWSC 173, the Court deals with a matter involving a penthouse apartment (Lot 11) in Point Piper Sydney situated on the fifth and sixth floors of the strata building. The building comprises of 11 lots in total. The penthouse has extensive ocean views of the Sydney harbour particularly observed from the balconies on the two floors and the rooftop area. The balconies and the rooftop have been accepted to be common property. There were also various valuation evidence that the exclusive use rights alone amounted to $2,250,000 in value. [...]  READ MORE →

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Reforms to the Retirement Villages Act

Retirement villages and “Over 55 Lifestyle Estates” are becoming popular post-retirement living arrangements among the Australian ageing population. While these communities offer unique lifestyles, it is crucial to consider the potential complexities and issues which may arise in respect of post-retirement living arrangements.

The establishment, operation and management of Retirement villages and retirement village contracts are subject to the Retirement Villages Act (NSW) 1999 (the ‘Act’).In 2021, significant changes were introduced to the Act to safeguard certain rights of residents. [...]  READ MORE →

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Significant Changes to NSW Duty and Land Tax in 2024

Key changes to NSW Duty and Land Tax take effect as of 1 February 2024, from the Treasury and Revenue Legislation Amendment Bill which assented on 27 September 2023.The reform introduces substantial amendments aligned with the NSW Government’s 2023-24 Budget. Key changes are set to impact land tax, corporate reconstruction, consolidation transactions and landholder duty, demanding attention and strategic planning from affected individuals, businesses and investors.

Summary of some of the key reforms include: [...]  READ MORE →

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Strata – Electric Vehicle Ready Buildings Grant

The NSW Office of Energy and Climate Change (as part of the Net Zero Plan Stage 1) has introduced a grant with a quota to assist over 125 residential strata apartment buildings in NSW to install electric vehicle (EV) charging infrastructure within their carparks. Applications are now opened.

What this means is that owners corporation apartment residents may be able to charge their electric vehicles at home (within their building) without seeking electric ports elsewhere!

Eligibility Criteria (briefly) [...]  READ MORE →

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Recent developments in the appointment of strata managers and their validity

There are recent judicial developments concerning the validity in the appointment of strata managers arising from the case of Walker Corporation Pty Ltd v The Owners – Strata Plan No 61618 [2023] NSWCA 125.

In the Walker case, the NSW Court of Appeal clearly establishes the Court’s preference to uphold the lot owners’ rights to choose their own strata managers for their own strata scheme.

Case Background

In the Finger Wharf Development at Woolloomooloo, the Wharf was subdivided into 8 stratum lots. Seven of these were subsequently subdivided by way of a strata plan thereby forming the seven respective independent strata schemes. [...]  READ MORE →

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Tax refunds available! Surcharge purchaser duty and surcharge land tax in breach of international tax treaties

Certain foreign persons are no longer required to pay surcharge purchaser duty and surcharge land tax (“the Surcharges”) when purchasing residential land in NSW. Those who paid are now eligible to receive refunds on any Surcharges paid on or after 21 July 2021.

The NSW Government determined that the State’s Surcharges were infringing upon international tax treaties, which Australia is a party of and are in force under federal law. As a result, Citizens of New Zealand, Finland, Germany, and South Africa can make a claim for a refund of the Surcharges they had paid. Otherwise, NSW Revenue is proactively searching for and contacting those who may be eligible. [...]  READ MORE →

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Historic Property Tax Legislation in NSW Passes in Parliament

Thousands of first home buyers in New South Wales will now be able to unlock the dream of home ownership sooner after the Property Tax (First Home Buyer Choice) Act 2022 (“the Act”) received assent from the Governor on 11 November 2022.

The Act allows an eligible person to opt to pay an annual property tax rather than stamp duty when buying their first home.

The concept of the property tax was first raised by NSW Premier Dominic Perrottet in July 2020 as a mechanism to abolish stamp duty and land tax and replace it with a single annual property tax. The concept relies on a long transitional period initially  beginning with first home buyers who can choose to place the property being purchased into the property tax system. [...]  READ MORE →