Commercial Lease Breach Notice
A commercial lease breach notice tells the tenant what it has done wrong and how long it has to fix it. We advise tenants who receive one and landlords who need to serve one, online.
- Fixed fee, confirmed before we start.
- For tenants and landlords.
- Australia-wide, online.
What a breach notice is
A breach notice, also called a notice to remedy or a default notice, is a written notice from the landlord to the tenant. It identifies a breach of the lease and gives the tenant a set time to fix it. If the tenant doesn’t, the landlord may be able to terminate the lease and take back the premises.
Common breaches are:
- unpaid rent or outgoings
- using the premises for something the lease doesn’t allow
- failing to repair or maintain
- not holding the insurance the lease requires
- alterations made without consent
- assigning or subletting without consent
If you have received a breach notice
Act quickly. The time to remedy may be short.
- Note the deadline.
- Check the breach. Does it exist, and does the lease require what the notice says?
- Check the notice. Does it name the right parties and premises, and was it served the way the lease requires?
- Fix the breach if you can, and tell the landlord in writing with evidence.
- If you dispute the breach, say so in writing before the deadline.
Ignoring the notice, or withholding rent to make a point, can make things worse. If the landlord has already re-entered, you may be able to apply to a court for relief against forfeiture, but you need to move fast.
Time to remedy and notice requirements
The lease sets a period to remedy, such as 14 days for unpaid rent. Each state’s property law legislation, such as the Conveyancing Act in NSW and the property law Acts in other states, also sets minimum requirements before a landlord can terminate for most breaches.
In general, the notice must:
- identify the breach
- require the tenant to remedy it within a reasonable time, if it can be remedied
- require compensation, if the landlord wants to claim it
The rules for unpaid rent differ between states and often depend on the lease. A notice that misses a requirement may not support a termination.
Re-entry and termination
If the breach isn’t fixed in time, the landlord may terminate the lease, usually by written notice or by re-entering the premises and changing the locks. Re-entry must be peaceful.
After termination, the landlord may:
- claim unpaid rent and other money owed
- call on the bond or bank guarantee
- claim against the guarantors
- in some cases, claim its loss of rent for the rest of the term, less what it gets from re-letting
If you are a landlord
Get the notice right before you serve it. A defective notice, or termination before the remedy period ends, may make the termination invalid and expose you to a claim for damages.
We prepare the notice, check it against the lease and your state’s requirements, and advise on service and the next step. Before you terminate, consider the alternatives, such as a payment plan or calling on the bond, and whether you want the premises empty.
Received or need to serve a breach notice?
Send us the notice or the lease and tell us the deadline. We'll confirm the fee before we start.
- Fixed fees.
- Online, Australia-wide.
- Landlords and tenants.