Disclosure for Retail Shop Leases
John Gallagher from Argon Law discuses legislations regulating the leasing of retail shops. In QLD this legislation is called the Retail Shop Leases Act. John offers a breakdown of the Act and highlights a few tips and tricks to ensure a smooth process for both Landlords and Tenants.
Always ensure you seek professional advice for your specific circumstances, the above is intended to be general in nature.
In all states and territories of Australia there is legislation regulating the leasing of retail shops. In Queensland that legislation is known as theRetail Shop Leases Act.
Failure to comply with that legislation can lead to negative outcomes, particularly for landlords.
Both landlords and tenants must provide written disclosure statements to each other in a form prescribed by the act.
Those disclosure statements must be signed and provided to the other party before the lease is signed. In the case of the landlord’s disclosure, it must be given at least 7 days before the lease is entered into.
The landlord’s disclosure statement needs to contain certain information including details of the leased premises and a breakdown and estimate of the outgoings payable by the tenant.
If a landlord fails to comply with those requirements then it can find itself liable to pay the tenant compensation and even find that the tenant is able to terminate the lease.
It is therefore highly recommended that landlords and tenants seek legal advice about the form of both their disclosure statements and the lease before they sign anything.
To summarise, landlords of retail shop leases should:
- make sure they give properly complete their disclosure statement in the proper form;
- give the signed disclosure statement to the tenant at least 7 days before the lease is entered into;
- seek legal advice from an experienced practitioner if they have any doubts about the process.
If you have any queries about this or any other aspect of commercial or retail leasing please contact us on 07 5443 9988 or[email protected].
Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers, business lawyers and property lawyers and are eager to assist you in any way we can.
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