Verbal Lease Dispute
The landlord in New South Wales is dealing with a tenant dispute stemming from the tenant's refusal to pay rent. The tenant withholds rent based on the argument that the property being on the market is resulting in a loss of clients. The lease agreement in place is verbal, lacking written terms concerning the property's sale. The tenant cites the for sale sign as justification for their actions. This situation raises issues related to commercial lease laws and contract law within the jurisdiction of New South Wales.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat legal options do I have if my tenant is withholding rent due to the property being listed for sale?
If your tenant is withholding rent due to the property being listed for sale, you have several options. First, you may consider initiating a mediation process through the relevant tribunal to resolve the dispute. This is often a more amicable and cost-effective approach. If mediation does not resolve the issue, you can apply to the tribunal for a formal resolution. Even without a written lease, tenants must pay rent unless there are terms stating otherwise. You can also issue a notice to remedy breach, demanding the tenant pay the arrears.
Can a tenant legally stop paying rent if there is no written lease agreement in place?
In New South Wales, even without a written lease agreement, tenants are generally required to pay rent on time as agreed verbally. The absence of a written lease does not negate the obligation to pay rent, and tenants cannot unilaterally withhold rent merely because the property is for sale unless there is a specific legal justification.
How might the verbal lease agreement affect my rights to sell the property and enforce rent collection?
A verbal lease agreement, while legally binding, can complicate matters when selling the property or enforcing rent collection due to the lack of documented terms. In New South Wales, verbal leases are recognised under the law, but proving specific terms like rent payment obligations can be challenging. Selling the property does not inherently terminate the lease, and the tenant's obligation to pay rent generally persists unless affected by other legal exceptions.
What steps should I take to document communications and protect my interests if this dispute escalates?
To document communications and protect your interests, keep detailed written records of all interactions with the tenant, including emails and notices sent or received. Keep copies of all payment records and correspondence related to the property sale. Consider serving a formal written notice to the tenant outlining their obligations under the verbal lease. It is advisable to seek legal advice to ensure correct drafting of this notice.
Are there any legal remedies available if the tenant claims that the sale sign is causing them a loss of clients?
If the tenant claims the sale sign is causing a loss of clients, they may argue this under the doctrine of 'quiet enjoyment.' However, a sale sign alone is unlikely to constitute a breach unless it causes significant disruption. The tenant must provide evidence of actual loss directly tied to the sign.
