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Rent reviews

Rent reviews

The District Court recently decided that parties cannot ordinarily appeal a rental determination by the Commercial Registrar of the Commercial Tribunal of Western Australia under section 11(5) of the Commercial Tenancy (Retail Shops) Act.

In practical terms, the implications of this decision are that a court will only be able to overturn the Commercial Registrar’s rental determination in very limited circumstances, such as where there is evidence of bias or the Registrar has failed to follow the principles of natural justice.

Section 11(5) of the Commercial Tenancy Act gives parties to a retail shop lease the right to refer to the Registrar to determine the rent payable in two circumstances:

Valuers appointed by the lessee and lessor fail to reach agreement; and, The Registrar gives leave.

This section, coupled with the District Court decision, provides a simple method for parties to have their rent review determined in a manner that is final and certain.

Shaun Temby, partner

9288 6911

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