Commercial leases can apply to three types of premises: retail (such as shops), commercial (such as office space) and industrial (such as factories and warehouses).
Though the Conveyancing Act normally regulates leases regarding these types of premises, Retail Shop Leases will also be regulated under the Retail Leases Act. The Act creates an additional level of regulation for retail premises, further regulating the relationship between tenants and landlords and offering tenants greater legal protection.
The Retail Leases Act applies to any premises conducting business in a retail shopping centre. Additionally, it covers specific ‘Scheduled’ businesses, regardless of them being in a shopping centre. These typically include convenience stores, hairdressers, grocers, newsagencies, pharmacies, second-hand goods stores etc.
If you are uncertain whether a particular business falls under the Retail Leases Act, please Contact Galluzzo Lawyers for advice.
Some of the major differences between a regular commercial lease and one under the Retail Leases Act include:
Section 9 requires the landlord to provide the tenant a copy of any proposed lease during negotiations. In regular commercial leases, the landlord would not normally provide any draft lease.
Section 11 requires the landlord to provide the tenant with a summary document. This is known as a Lessor’s Disclosure Statement. It outlines important matters such as outgoings estimates. Such a Statement is not required for ordinary commercial leases.
Section 14 prohibits the costs associated with preparing the lease from being passed on to the tenant.
Section 16 makes it mandatory for the landlord to lodge their security deposits with the NSW Small Business Commissioner.
Section 17 to 32 provide tenant’s with various protections regarding rents payable and the outgoings recoverable by a landlord.