Do you have a Retail Shop Lease?
The Queensland Parliament recently passed legislation to amend the Retail Shop Leases Act 1994. Most of the amendments are due to commence on 25 November 2016 and are designed to:-
- Reduce red tape and compliance costs for both Lessors and Lessees;
- Address the imbalance in access to information and negotiating power;
- Exclude certain leases from the provisions of the Act; and
- Clarify disclosure provisions.
Some of the benefits for Lessors include:
- excluding leases with floor area greater than 1000 square metres;
- clarifying when a Lessor Disclosure Statement is not defective;
- allowing the Lessor to recover certain costs when a lease does not proceed;
- excluding the Lessor from liability for compensation in some cases where the Lessee’s business is disrupted.
Some of the benefits for Lessees include:
- requiring Lessor disclosure on renewal of an option;
- allowing for certain disclosure to franchisees;
- only requiring a Lessee to refurbish where the lease sets out sufficient details of the extent of the refurbishment;
- requiring a break down of Centre Management fees to be provided;
- providing for the release of an assigning Lessee and their guarantors.
As these changes are due to come into effect by the end of November, if you have any queries, please contact us and our experienced team will gladly assist you.
If you would like more information, please contact Brad Beasley on 4936 9100 or by email.
It is important to seek specific advice regarding your circumstances as this fact sheet provides general information only and does not constitute legal advice.