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Rapid Rental Determinations

28 April 2020

What is fair abatement of rental under clause 27.5 of the ADLS deed of lease (6th Edition 2012)?

Clause 27.5 of the ADLS 6th Edition deed of lease entitles the tenant to an abatement of a fair proportion of the rent and outgoings in the event that the tenant cannot access the premises to fully conduct their business. This provision is triggered by and applies during COVID-19 Alert Levels 3 and 4.

The facts and circumstances of each lease, each landlord, and each tenant are different and relevant to determining the level of rent and outgoings to be abated while a tenant is unable to access the premises to fully conduct their business. In some cases, tenants will have no or limited access. In other cases, a tenant may have access, but their ability to conduct their business will be constrained.

It is often difficult for a landlord and tenant to agree on what a fair proportion of the rent and outgoings to be abated should be.

Jack Porus, a senior property lawyer and joint-managing partner of Glaister Ennor is able to act as an expert to determine the appropriate level of abatement that should apply in specific cases where clause 27.5 applies. Jack has more than 30 years’ experience in property and commercial law and advising on trusts and estate planning. He also manages the Vulcan Mortgages, the firm’s mortgage lending company, and GEK Property, which arranges syndicated property investments.

The process is designed to be fast and reasonably priced. Where the rental is under $100,000 per annum, the fee is fixed at $1,500 plus GST. Rates for higher rental leases are available on request.

Should you wish to take advantage of this service please contact us at d.............@glaister.co.nz or call (09) 356 8243 to speak with Jack or Anna Neville. Jack may also be contacted directly on 021 397 712.