Is your Lease a Retail Leases Act lease?

If you have entered into a Lease, either as a Lessor or a Lessee (Landlord or Tenant), do you know whether your lease is a Retail Leases Act lease?

It is an important question because if the business falls within the definition of retail shop business then the conditions of the Retail Leases Act apply regardless of what is written in your contract.  There are important things that go along with this, like the Lessor’s Disclosure Statement and the solicitor’s certificate. 

If the Lessor’s Disclosure Statement is not provided seven days before the Lease is entered into, or it is incomplete, then some of the consequences include:

• The tenant may be able to terminate the Lease within the first six months of the Lease

• The initial term (not including renewals) of the Lease might be extended to five years, so they could get five years plus all the options to renew

• If the tenant can and does terminate then the Landlord may have to repay them for any loss, including fit out costs

• The tenant may not have to pay outgoings not disclosed in the LDS

• The tenant may only have to pay the estimate for outgoings provided in the LDS and no more

There are many other requirements to do with Retail Leases that, if not complied with, can be very costly for the landlord.

Have a look at the list of retail shop businesses here.  If you are a landlord for any businesses listed in this Lease and you didn’t know that the Retail Leases Act applied to you then you should definitely contact us today.