Retail Shop Leases- Changes to Disclosure Requirements
Disclosure Documents are to be provided to potential Lessees 7 days before a Lessee enters into a Retail Shop Lease. Prior to the Legislative changes, the necessary Disclosure Documents varied depending on the state.
Following the amendments to the Retail Shop Leases Act 2006 (Qld) on 1 July 2011, Landlords are now required to follow a more uniform approach when it comes to Disclosure Documents.
These changes were brought about to ensure that potential Lessees and Assignees are given an opportunity to gain as much knowledge of the Lease as possible to be confident of their decision, before entering into it. Further, they aim to benefit Landlords who rent out retail premises’ in multiple jurisdictions across Australia. These benefits apply to Landlords, Lessees and Assignees across Queensland, New South Wales and Victoria.
What changes have been made to the Disclosure Documents?
Specific sections in the Disclosure Documents have changed to impose obligations on Landlords to disclose:
- the estimated commencement date of the Lease and the date that the Lessee is permitted to occupy the premises
- if there is an option to renew the Lease and the date at which the option should be exercised
- whether the Landlord is required to disclose the current tenants of the centre
- the number or parking spots and other facilities provided by the Landlord
- information regarding the payments of outgoings, the date which payments are to begin being made and the existence of any rent free period
- any surveys of the premises that are to be undertaken by the Landlord
- any additions to the premises that the Landlord is to supply, for example, fixtures or equipment
- the amount that the Lessee is obligated to contribute to the cost of any works to be performed by the Landlord
- any contribution the Landlord is to make toward fit out costs incurred by the Lessee, specifications of the fit out works and the standard and quality the works are to be completed by the Lessee
- not only do changes to the premises approved by the government need to be disclosed, any information regarding alterations to the shop, the centre in which it lies or the roads around the shop are now also to be disclosed
- the details and any costs involved in permitting the Lessee to enter the shop outside the core trading hours
- the existence of any current issues regarding the use of the shop or centre
For any questions regarding these changes or complying with the new disclosure obligations, please contact Gavin McInnes on 3009 8444 or firstname.lastname@example.org.