ARTICLES
Ban on Upward Only Rent Reviews
By Bernie Coleman
The Minister for Justice signed Section 132 of the Land and Conveyancing Law Reform Act into law on 1st December 2009. Section 132 comes into operation on 28th February 2010 and bans upward only rent review clauses in commercial leases with effect from this date. However the Section only applies to leases granted after the operative date and will have no effect on existing leases. The ban is to be welcomed with regard to new leases.
However it leaves existing tenants in the invidious position of being placed at a market disadvantage in that they will still be bound by the upward only review clause in their leases. These tenants will find it extremely difficult to assign their leases in future due to the availability of leases which will not contain this clause. The ban will create a two-tier market in this area and cause difficulty for many.
Should you require any advice or information on how you or your company may be affected by this new legislation, please contact Bernie at bcoleman@orourkereid.com