Where a tenant duly exercises an option to renew a lease and the landlord accepts the exercise, an equitable lease for the renewed term comes into existence immediately upon expiry of the original term, regardless of whether a formal deed has been executed. The tenant's failure to execute the formal deed does not reduce the tenancy to a periodic tenancy at law terminable by notice to quit, particularly in Western Australia where s 71 of the Property Law Act 1969 has abolished the common law implication of a tenancy from year to year. The landlord's remedy is to seek specific performance compelling execution of the formal deed, not to serve a notice to quit.
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