Premium on assignment prohibited
44 Premium on assignment prohibited
A lessor must not seek or accept the payment of a premium in connection with the granting of consent to the assignment of a retail shop lease and a provision of a retail shop lease is void to the extent that it requires the payment of a premium in connection with the granting of consent to the assignment of the lease.
If a lessor or a person acting on behalf of a lessor contravenes this section—
the person is guilty of an offence and liable to a penalty not exceeding
$15 000; and
the lessee is entitled to recover from the lessor as a debt any payment made or the value of any benefit conferred by the lessee and accepted by or on behalf of the lessor in contravention of this section (whether or not the person is convicted of an offence under paragraph (a)).
This section does not prevent the lessor from requiring payment of a reasonable sum for legal or other expenses incurred in connection with such a consent (but the lessee is entitled to have those expenses substantiated by the lessor before making such a payment).
Note—
The lessor and a proposed assignee may enter into a new lease of the retail shop instead of proceeding with the assignment.
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