A Form 7 Notice to Remedy Breach is more commonly known as a “Breach Notice” or “PLA Form 7” and is issued to a tenant under a commercial lease where the tenant has breached the Lease. Common reasons for the issue of a Breach Notice are non payment of rent, using the premises for something other than the permitted use, conducting prohibited activities etc.
A Breach Notice must be issued pursuant to Section 124 of the Property Law Act 1974 (Qld) (“PLA”). Failure to comply with the strict requirements of the PLA can render the Breach Notice and any action taken after the issue of the Notice, invalid.
Some of the requirements of the PLA include:
- The Notice must be in writing;
- The Notice must be served on the tenant, compliant with the specific requirements of legislation, or as otherwise agreed in the terms and conditions of the Lease;
- The Notice must specify “the particular breach complained of”;
- The Notice must, “if the breach is capable of remedy”, require “the lessee to remedy the breach”;
- Where money for the breach is claimed by the landlord, the Notice should require ‘the lessee to pay the same”; and
- The landlord must allow the tenant a ‘reasonable time’ to comply with any request in the Notice.
Failure to provide a compliant Breach Notice can have serious consequences. As an example, a tenant may have a right to compensation for loss and damages, if an invalid Breach Notice was relied upon by the landlord to “lock out” a tenant from the premises.
Courts have found Breach Notices invalid where the Breach Notice failed to include the “Note” which appears in the approved version of the form, or where the tenant has not been provided with a ‘reasonable’ amount of time to remedy the breaches of the Lease.
A Breach Notice which has been correctly prepared and served, will place the Landlord in a position where it can re-enter and take control of the premises, if that is desired.
It is strongly recommended that landlords engage an experienced property solicitor to issue any Breach Notice to avoid costly consequences.
Please contact The Small Business Lawyer for advice on your Lease or to obtain a fixed fee quote for the issue of a Breach Notice.
