Introduction

Relief against forfeiture refers to the situation where a court protects a person (or tenant) against the loss or determination of an estate or interest in property, or a proprietary right, either in consequence of a failure to perform a covenant or condition or in consequence of the determination of the contract for some other reason: The Principles of Equity by Parkinson (ed) (1996, LBC).

How relief against forfeiture works in practice

The standard position in VCAT and the courts is that:

if the lease was terminated for non-payment of rent, relief against forfeiture will be granted if the rental arrears are made up and the landlord’s costs paid, unless exceptional circumstances can be shown (eg the tenant’s insolvency); and
if the lease was terminated for reasons other than non-payment of rent, relief from forfeiture will only be granted in exceptional circumstances.

If a landlord successfully forfeits the lease and evicts the tenant, the tenant is still allowed to seek relief against forfeiture. In essence, a claim for relief against forfeiture involves a plea for intervention by a court or tribunal on the basis of equitable concepts of fairness. By making such an application, the tenant is admitting the validity of the forfeiture, but nonetheless seeking to have the lease re-instated in equity.

Put simply, a tenant who falls behind on rent, but pays the arrears, will generally be granted relief against forfeiture at least once, provided there are no other serious breaches of the lease.

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The full article (2233 words) considers:

Jurisdiction to grant relief against forfeiture
Refusal of relief against forfeiture
Applying for relief against forfeiture
Goods left at premises
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15 essential tips for tenants