Starting with a discussion paper in 2008, the Retail Leases Act has undergone intense scrutiny as the Government consulted with stakeholders to improve the legislation. An amended Retail Leases Act will commence on 1 July 2017, with extensive changes aimed at improving the relationship between landlord and tenant (lessor and lessee).
Some of the key amendments for lessors are:
The definition of “outgoings” will include any additional services the lessor has provided
The lessor disclosure statement will be simplified
Only leases with a term of 3 years of more will be required to be registered
Some of the key amendments for lessees are:
If a lessee is not provided with the required lessor disclosure statement 7 days prior to signing the lease, they can terminate the lease within 6 months of the commencement date and seek compensation
The lessor must disclose all outgoings to be paid by the lessee in the disclosure statement, if not disclosed, they are not payable
Lessor’s must return bank guarantees within two months of the lessee fulfilling all their obligations
There will no longer be a five-year minimum term for retail leases
Online Transactions will be excluded from determining turnover rent (with some exceptions)
The amended legislation will affect both landlords and tenants, so if you would like to know more about the changes please give Jenkins Legal Services a call on 02 4929 2000.