Key-Money is prohibited

Section 23(1) of the Retail Leases Act 2003 prohibits seeking or accepting the payment of key-money or any consideration for the goodwill of any business carried on at the retail premises.

This prohibition applies to landlords, prospective landlords and anyone acting on their behalf (section 23(5) of the Act).

Contraventions of the prohibition are punishable by a fine of 50 penalty units (section 23(1) of the Act).

A provision in a retail premises lease is void to the extent that it requires the payment of key-money or consideration for goodwill, or has that effect (section 23(2) of the Act).

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