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Hi This matter concerns a leasehold caravan park in Victoria,

Australia and the application of...

Hi This matter concerns a leasehold caravan park in Victoria, Australia and the application of the Retail Leases Act. Many "power heads" (that supply caravan and cabins electricity and are fixed in the ground) at the park required to have their safety switches replaced as they no longer functioned due to fair wear and tear (ie there were very old). The landlord says that because they were listed on the list of "chattels" when we bought the business, we own them, and are responsible for them. Being a "fixture", we would have thought that the "power heads" were a landlord's, and this his responsibility, and that nothing in a contract of sale including the so called list of "chattels", can be written into an agreement to deliberately avoid the intention of the RLA is enforceable. Especially Sect. 52 I think. Appreciate your advice. Regards, Craig

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Answered in 24 minutes by:

4/27/2014

Solicitor: Leon, Solicitor replied 9 years ago

Leon, Solicitor

Category: Australia Law

Satisfied Customers: 52,731

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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Good Morning,

My name is XXXXX XXXXX I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.

Do you have a copy of the lease and also a copy of the Agreement that you signed when you purchased the business?

Customer reply replied 9 years ago

Leon

The lease is subject to the RTA. The agreement I signed included a list of so called "chattels" including the park power heads, which are fixed into the ground. My understanding now is that any clause in such an agreement that seeks to avoid the RLA is void. In this case referring to "fixtures" (the power heads) as "chattels". Regards, Craig

Solicitor: Leon, Solicitor replied 9 years ago

Good Evenings

Did you buy the business that is on the premises?

IF you did, do the park power heads form part of that sale?

I understand what you are saying about the Retail leases Act but I need to know what you bought when you bought the business?

Customer reply replied 9 years ago

When I bought the business, listed as the "chattels" acquired included the power heads, which are fixtures. Is it not like listing the managers house as a chattel to pas on it's maintenance to the lessee, when really it is a fixture and passes with the property? Listing power heads as chattels could be seen as deliberately attempting to avoid the Act by transferring their "ownership" to the lessee, when in fact the lessee can never take them with him when he leaves because they are "fixed" to the property. However other chattels such as mowers, trailers etc are not "fixed" to the land.

Regards, Craig

Solicitor: Leon, Solicitor replied 9 years ago

Good Morning Craig

If they were installed by the business owner that you purchased the business from then they are yours and you are responsible for them.

You cannot change what you have purchased and the ownership has passed to you.

They have been transferred by the Contract and under the lease you are responsible for your own fixtures and fittings.

This is not the case you can remove them and take them with you. If they were not there when the premises was initially leased you are required to remove them unless the landlord agrees to them remaining.

I hope this make sense? Your purchase of the business is the key to who owns what.

Customer reply replied 9 years ago

Thankyou Leon, I get it.

Regards, Craig

Solicitor: Leon, Solicitor replied 9 years ago

Good Morning Craig

I am happy to have been of assistance.

Good luck with it.

You are very welcome and thank you for using my services.

If I have missed anything, or you have any further questions please let me know

If there is anything else in the future please do not hesitate to ask.

Please do not forget to leave positive feedback.

Regards
Leon

Leon, Solicitor

Category: Australia Law

Satisfied Customers: 52,731

Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)

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