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Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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When a lessor enters into possession of a commercial

Customer Question

When a lessor enters into possession of a commercial property through lease default (arrears) what happens to the property (stock and equipment) of the lessee as contained within the property at that time?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Afternoon

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advice but a guide to assist you.

What does the lease say about taking possession?

The stock remains the tenants but you have to look at the lease and see when it transfers to the landlord.

They are very detailed and they are the law you apply.

Do you have a copy of the lease?

Customer: replied 1 year ago.
Expert:  Leon replied 1 year ago.

What does it say the rights of the landlord are if the lessee breaches the lease.

It should also have a clause that sets a time or event that will result in the fixtures and fittings reverting to the landlord.

Customer: replied 1 year ago.
do I have the right to gain reasonable access and remove all of the assets belonging to me during the time between when he takes possession and when he can take ownership of the assets?
Customer: replied 1 year ago.
is this right usually included in a lease?
Customer: replied 1 year ago.
he locks the doors and lets say he has to sit on the assets for one month before being able to take possession of them. During that period am I able to reenter and retrieve my goods?
Customer: replied 1 year ago.
what if I have sold the entire contents to a third party prior to the landlord taking possession? Does the third party have the right to retrieve their assets?
Customer: replied 1 year ago.
Thanks for referring me back to the lease. I could have read it without talking to you. Is that it?
Expert:  Leon replied 1 year ago.

Good Afternoon

You need the landlords consent and they may only allow you to remove perishables.

They hold a lien over the rest based on the lease.

Until he takes possession you are in possession. Once the landlord locks you out then you cannot do anything.

If items are not yours but under a lease you can seek orders for them to be removed and handed to the true owner.

But you need evidence.

I cannot tell you more than that without seeing the lease. But if they damage the goods and they have no right to them you can sue them for damages.

If they refuse to return them you have a right to claim against them and reduce any outstanding rent you owe.

Without seeing the actual lease I cannot give you more than I have.

The rules you and the landlord are bound by are in the lease. This is what you agreed to.

I hope this makes sense?