Arbitration clauses in leases provide a mechanism for landlords and tenants to resolve disputes which they may have, without resorting to court proceedings.
A potential number of arbitral disputes may arise out of the Covid-19 lockdown as to whether or not a tenant can reduce or stop paying their rent - and for how long.
It is not yet clear what will be interpreted as a “fair proportion” in determining the amount of rent that will cease to be payable during this period.
There is also a difference of opinion whether the reduced amount will be completely written off or merely deferred for payment later on.
Should you need any advice on your rights as a landlord or tenant, or if you would like someone to assist you in working things through with your landlord or tenant, you can send an email to firstname.lastname@example.org or call us on 009 412 6000.