Retail Shop Leases Act

Australia has laws aimed at protecting shop tenants from possible abuses of retail shop lessors. Under it, retail shop lessors are obliged to comply with certain disclosure requirements.

Are you a retail shop lessor who would like to know more about your obligations in order to comply with the law? Here is a basic guide to the tenancy laws.

Australia has retail tenancy laws designed to protect tenants from possibly entering into an unsound and harsh lease agreements with landlords. These laws are specific for each of the eight states. But the common thing about them is they seek to protect the tenants by making sure they -- as well as the lessor -- are informed about their rights under the law.

Retail Leases Act Definition

The Act is only applicable to lease agreements specified under the Act. As a matter of basic definition, according to New South Wales’ The Retail Leases Act of 1994, a retail shop lease is one entered by a lessee with a lessor that rents out at least five areas in a commercial area. But centers with rentable areas comprising at least 1,000 sq. m. is excluded. A more extensive definition that specifies exclusions and exemptions is contained in the actual Act. To determine whether your lease agreement is covered by your state’s retail tenancy law, you must read the whole document.

Retail Shop Lease Disclosure Obligation

One of the basic aims of the retail tenancy law is to compel lessors to be clear and accurate about the conditions and responsibilities of the parties in the lease contract so as not to misled or deceive the lessee. The Act wishes to ensure no deception is done to a retail lessor. If there is, the lessor may make a claim for compensation for loss or damages he suffered as well as request the termination of the contract within months of the discovery of the shortcoming of the lessor. To achieve the goal of equipping the lessee with knowledge of his rights under the law, the lessor is required to provide any prospect with a retail tenancy guide at the onset of negotiations. He is also mandated to provide a disclosure statement that provides in a clear manner all relevant terms and conditions of the lease contract.

Resources for Retail Shop Lessors

There are sources in the Internet that can help landlords comply with the law. These sources range from downloadable versions of retail tenancy laws applicable to their place of business to online Disclosure Statement forms. If you are a landlord and you want to make sure you are in compliance with the law, it is best as a full and guaranteed protection to consult with professionals. Law Experts can provide you with advice on such matters. You can post issues for question and discussion on their Web site.


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