Building Legislation Amendment (Domestic Building Insurance New Offences) Act 2024
The Amendment Act passed both houses on 22 February 2024 and was proclaimed to commence on 28 February 2024.
Airbnb is creating renewed cause for a distinction between leases and licences to be considered by the courts
The distinction between leases and licences has long caused confusion and consternation for landowners, particularly in the context of a municipal council’s statutory obligations under the Local Government Act 1989 and, more recently, the Retail Leases Act 2003.
The new-age phenomenon of Airbnb has created renewed cause for this issue to be considered by the courts.
In Swan v Uecker [2016], the Victorian Supreme Court recently found that a ‘licence’ granted by a landowner to AirBnB users in fact constituted a sub-lease. This decision has provided a timely reminder to landowners of the key distinguishing features between a lease and a licence, namely:
When determining whether to grant a lease or licence, landowners should carefully consider the above principles.
The decision of Swan v Uecker has illustrated that - regardless of the title given to a document (i.e. a lease or a licence) - it is the nature of the rights granted to the occupant under the agreement that determine whether it is a lease or a licence.
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Sign upThe Amendment Act passed both houses on 22 February 2024 and was proclaimed to commence on 28 February 2024.
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