Termination of occupancy agreement
71EK Termination of occupancy agreement
The grantor must ensure an occupancy agreement states—
under what circumstances the occupancy agreement may be terminated; and
a reasonable period of notice that must be given by a party before the agreement is terminated.
For subsection (1) (a), the occupancy agreement may only allow a party to terminate the agreement under circumstances that are reasonable having regard to the nature of the occupancy.
Examples—nature of occupancy
1 whether the occupancies of the premises are usually long-term or short-term
2 whether the agreement is for a fixed term or is periodic
3 whether the accommodation is provided by a commercial provider or is in someone’s residence
4 whether the accommodation is provided for a particular group of people such as students studying at a university
A party may only terminate an occupancy agreement if—
all parties to the agreement agree; or
the agreement allows the party to do so and the party has given notice in accordance with the agreement; or
the other party has—
breached an occupancy principle or the occupancy agreement; and
the breach justifies the termination of the agreement.
Note An occupant may also terminate the agreement if the grantor gives notice of a change to the occupancy rules, fees, charges or penalties (see s 71EG (3)).
However, if an occupancy agreement may be terminated under a university requirement—
subsection (2) does not apply; and
for subsection (3)—the parties may also terminate the agreement as permitted or required under the university requirement.
A grantor must not terminate an occupancy agreement, or evict an occupant, only because the occupant—
applied to the ACAT for an order in relation to an occupancy agreement; or
complained to a government entity in relation to an occupancy agreement; or
took reasonable action to secure and enforce an occupancy agreement.
In this section:
university requirement—see section 71EA (5).
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