Retail landlords and tenants take note! The 5 Big changes coming in retail leasing…

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Recently the State Government has introduced into Parliament sweeping changes to the laws relating to Retail Leases which are due to become law very soon.

Essentially the changes will affect both sides of the retail leasing arrangement.

So landlords and tenants would be wise to take note of the top 5 changes which will have an impact.

So what are they?

1.    No mandatory minimum term

Under the old law a Retail Lease was for a minimum of 5 years unless a certificate by a lawyer was provided effectively waiving this requirement. Under the new law the 5 year minimum term is abolished.

2.    Documents to be delivered by landlords to tenants 

It is now a requirement, except in certain cases for a signed copy of the lease to be sent to the tenant by the landlord within 3 months of it being returned by tenant to landlord.

It is also now a requirement for a bank guarantee to be returned to the tenant within 2 months of the tenant fulfilling all of the obligations under the lease.

3.    Compensation

A tenant will now be entitled to compensation including fit out costs if the tenant terminates the lease in the first 6 months due to the landlord either failing to provide a disclosure statement or providing one which is misleading or not completed.

4.    There are substantial amendments relating to outgoings 

A tenant now is not obliged to pay for any outgoings not disclosed to be paid in the lessors disclosure statement. Also if the landlord provides an estimate of outgoings and the amount actually charged exceeds that figure the tenant is now not liable to pay the additional actual amount if there was no reasonable basis for the estimate given

5.    Mortgage consent fees

It has now been clarified that a landlord cannot pass onto a tenant and mortgagee consent fees.

As you can see these changes will have different impacts on both sides to the equation, so please take the time to get advice from us if you need it now.

There are some other changes which I will address in the next e letter…

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Director Lawyer

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Raea Khan Circle
Director Lawyer
Raea Khan

Raea is Managing Director and Principal Lawyer for PBl Law Group. Raea assists clients with major projects, property developments, construction and strata law.

He has worked in Western Australia and Queensland assisting with expansion projects in the energy and resource sector and now predominately advises clients in Strata and Community Association matters.

He is a member of the Australian College of Strata Lawyers where majority of his work is advising developers and owners corporations with dispute related minor and major defects, strata governance and common property litigation. He is proficient at leading negotiations and meetings.

Raea has a particular interest in the commercial aspect of any dispute and always tries to weigh up the risk, reward and benefit of legal proceedings at each different stage.

Raea enjoys all forms of competitive sport, including Crossfit and actively participates in Triathlons, representing Australia as an age group athlete. He was a member of Red Head Surf Lifesaving club.

  • Strata Law
  • Construction & Major Projects
  • Commercial and Business Law
  • Planning & Environment Law