ACT Commercial Eviction Process: Breaches and the Magistrates Court

Evicting a commercial tenant in the Australian Capital Territory (ACT) is a formal legal process governed jointly by the specific terms of the commercial lease and the overriding dispute resolution frameworks in the Leases (Commercial and Retail) Act 2001.

Disclaimer: This guide provides general legal information for educational purposes only. Commercial dispute resolution is complex. Always consult an ACT-qualified commercial solicitor before taking any action. Information last verified: March 2026.

Re-entry and Forfeiture

Most well-drafted commercial leases in the ACT include a clause granting the landlord the right of "re-entry and forfeiture" if the tenant defaults. This allows the landlord to end the lease early.

However, a landlord cannot simply execute this right without strict adherence to statutory process.

The Eviction Process: Step-by-Step

1. Identify the Breach

A landlord must have a valid cause for eviction. This is usually:

• Non-payment of rent: Falling into arrears beyond the "grace period" defined in the lease (often 7 to 14 days).
• Other breaches: Failure to maintain the property, unauthorized subletting, or operating outside permitted use.

2. Issue a Notice of Default (Section 122 Notice)

Before attempting to re-enter the property or terminate the lease, the landlord must issue a formal written notice, often referred to under general property law principles as a Section 122 Notice (referring to the Law of Property Act equivalent).

• The notice must specifically outline the breach.
• It must demand that the tenant remedy the breach within a "reasonable time" (e.g., 14 days to pay overdue rent).
• It must state the landlord's intention to terminate the lease if the breach is not remedied.

3. Seek Resolution and "Good Faith"

The ACT legislation strongly encourages, and sometimes mandates, dispute resolution. Under Part 14 of the Leases (Commercial and Retail) Act 2001, the primary venue for commercial lease disputes is the ACT Magistrates Court.

• If the tenant disputes the breach or fails to remedy it, the landlord should lodge an application with the Magistrates Court rather than attempting physical eviction.

4. Court Order and Execution

If the Magistrates Court agrees that the tenant has irremediably breached the lease, it will issue an order for termination and possession. Only then, armed with a court order, can the landlord legally organize for the eviction (often via a bailiff changing the locks).

The Risk of "Self-Help" Eviction

While some commercial leases allow "peaceable re-entry" (physically changing the locks without a court order), this is incredibly risky in the ACT.

• If the tenant applies for "relief against forfeiture" in court and succeeds, the landlord may be sued for massive damages resulting from the disruption to the tenant's business.
• Because the ACT strongly promotes mediated dispute resolution, bypassing the Magistrates Court is generally advised against by commercial solicitors.

End of Lease Evictions

Unlike the residential sector, if a commercial lease simply expires and contains no "option to renew," the tenant has no automatic statutory right to remain. The landlord can require them to vacate on the final day of the lease term without relying on a breach.

How Landager Helps

Compliance with notice periods is critical in commercial litigation. Landager tracks your exact lease grace periods down to the day. If a tenant misses rent, our platform automates the creation of precision-dated, compliant Notices of Default, ensuring you have the flawless paper trail required should the dispute escalate to the ACT Magistrates Court.

Back to ACT Commercial Lease Laws Overview.