Tutorial 7 Nature and creation of leases Question 1 Look at the question in activity 7.1 under 'learn' for this week. How you would redraft the agreement between Agistment and EventR&R to ensure there is no breach of the sub-lease. Question 2 Read the case Swan v Uecker (2016) 50 VR 74; [2016] VSC 313 and answer the following questions: a) Why was it important to determine whether the Airbnb arrangement constituted a lease or a licence? b) What was the finding of the Court, and why did it reach the conclusion? c) What were the two factors included in the VCAT judgment that the Court found to be irrelevant in relation to the lease/licence question? Question 3 CP Developers Pty Ltd (CP) own a multi-storey building 'Cityscape' in the middle of the CBD, which has retail tenants. CP are considering selling Cityscape but wish to ensure that the leases are legal and enforceable. Answer the following: a) Tenant 2 had a lease for 4 years that was registered, but the lease expired in January 2021. The lease contained the following clause: If with the Landlord's consent, the Tenant occupies the Premises after the Expiry Date, the Tenant holds the Premises as tenant from month to month on the terms of this Lease as at the Expiry Date of this Lease except that: a) the Landlord or the Tenant may end the tenancy on any day by giving at least a month's notice to the other party, and b) the Rent will be 110% of the Rent in the last year of the Term. Tenant 2 has been paying rent on a monthly basis for the last 3 months. What is the legal status of the lease? What steps does CP need to take to ensure the lease will be effective if CP sells the property? b) Later, CP then sells Cityscape to Property Investors Pty Ltd and the transfer is registered. After this time a further lease comes to light. In the drawer of a Cityscape property manager there is a four-year lease from CP to a gym/cafe 'Jelly Jumps', suitable for registration, which was prepared by Jelly Jumps' solicitors. Jelly Jumps had entered into possession in accordance with the lease. Rent is $12,000 per year and paid monthly at $1000 per month. Since becoming owners of Cityscape, Property Investor has accepted rent from Jelly Jumps and the Property Investor manager in charge of Cityscape has coffee from the Jelly Jumps café every morning.
Three months after settlement Property Investor decides to redevelop the part of the building Jelly Jumps occupies into a foyer and day spa and needs vacant possession. Can Property Investor obtain possession of Jelly Jumps premises so the redevelopment can commence?