Premium for renewal or extension prohibited
20L Premium for renewal or extension prohibited
A lessee cannot be required to pay a premium for the renewal or extension of a retail shop lease.
If a lessor or a person acting on behalf of a lessor seeks or accepts a premium for the renewal or extension of a retail shop lease—
the lessor is guilty of an offence and liable to a penalty not exceeding
$15 000; and
the lessee may recover the amount of the payment as a debt (whether or not the lessor is convicted of the offence).
This section does not prevent a lessor from—
requiring payment from the lessee of a reasonable sum for legal or other expenses incurred in connection with the renewal or extension of a retail shop lease; or
receiving payment of rent in advance; or
requiring reasonable security from the lessee or another person to secure performance of the lessee's obligations under the renewed or extended lease; or
seeking or accepting payment for the grant of a franchise in connection with the renewal or extension of the lease.
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