Section 245 — Property Law Act 2007: Cancellation of lease for breach of covenant to pay rent
Text of the provision Official document
245 Cancellation of lease for breach of covenant to pay rent (1) A lessor may exercise a right to cancel a lease because of a breach of the covenant to pay rent under the lease only if— (a) the rent has been in arrears for not less than 10 working days; and (b) the lessor has served on the lessee a notice of intention to cancel the lease; and (c) at the expiry of the period specified in the notice, the breach has not been remedied. (2) However, if the lessor believes on reasonable grounds that the lessee has given up possession of the leased premises (whether or not the lessee has actually done so), the lessor does not need to serve a notice of intention to cancel the lease on the lessee but must serve the notice instead on all of the following whose names and addresses are known to the lessor: (a) any mortgagee or receiver of the leasehold estate or interest: (b) any sublessee of the lease: (c) any mortgagee or receiver of the estate or interest of a sublessee. (3) The notice required by subsection (1)(b) or (2) must adequately inform the recipient of all of the following matters: (a) the nature and extent of the breach complained about: (b) the amount that must be paid to remedy the breach: (c) the period within which the breach must be remedied (which must not be less than 10 working days after the date of service of the notice): (d) the consequence that, if the breach is not remedied at the expiry of the period specified in the notice, the lessor may seek to cancel the lease in accordance with section 244 : (e) the right, under section 253 , to apply to a court for relief against cancellation of the lease, and the advisability of seeking legal advice on the exercise of that right. (4) The period for remedying the breach specified under subsection (3)(c) may run concurrently with the period specified in subsection (1)(a) in which the rent must be in arrears before the lessor may exercise any right to cancel the lease. Compare: Landlord and Tenant Act 1730, 4 Geo 2, c 28 s 2 (UK); 1952 No 51 s 118
Official source: legislation.govt.nz
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