Key Changes Under the Retail Shop Leases Amendment Act 2016

Make an appointment

On 25 May 2016, the Retail Shop Leases Amendment Act 2016 was enacted to amend the regulation of retail leasing in Queensland.

The 2016 amendments to the Retail Shop Leases Act 1994 (“Act”) commenced on 25 November 2016 and apply prospectively from that date.

Contact Sylvia

This means the amendments will apply to any retail shop lease entered into on or after 25 November 2016.

The amendments brought significant changes to the Act including the coverage and the preliminary disclosure obligations for a retail shop lease. Both Landlords and Tenants should be aware of these changes and what effects they may have on the tenancy relationship.

Exclusions to a Retail Shop Lease

As a result of the 2016 amendments, the Retail Shop Leases Act 1994 has clarified the meaning of a retail shop lease by specifically excluding a lease of:

  1. a retail shop with a floor area of more than 1000m2;
  2. a premises used wholly or predominately for the carrying on of a business by a Tenant for the Landlord, as the Landlord’s employee or agent;
  1. a premises for non-retail business purposes, if the premises are located on a level of a retail shopping centre or a single level building, where at the time the lease is entered into, 25% or less of the total lettable area of the level or the building is not used for retail business purposes; and
  1. a premises used for an automatic teller machine (ATM) or vending machine, where the premises would be within a common area of a retail shopping centre if it were not leased.

Disclosure Obligations

In addition, the 2016 amendments clarify the preliminary disclosure obligations for a retail shop lease, including allowing for the waiver of the disclosure period by Tenants and Assignees who are not major lessees.

The disclosure obligations for a retail shop lease not only apply to parties entering into a new lease, but include the requirement to provide a Tenant exercising an option to renew with a current disclosure statement. Both Landlords and Tenants should be aware of their disclosure obligations and the strict time constraints that apply, particularly as a Tenant has the ability to terminate a retail shop lease within 6 months if the Landlord does not comply with their disclosure obligations, or the disclosure statement they provided is defective.

 

 

If you have any queries regarding the above, please do not hesitate to contact us at BigLaw Solicitors on (07) 3482 6999 or email us at mail@biglaw.com.au.

At Big Law we provide holistic legal solutions to legal matters.

Information & Helpful Tips

To solve children's matters after separation contact solicitors of Big Law

Children’s Matters After Separation

| Family Law | No Comments

Separation can be one of the most harrowing of life experiences, especially when there are children involved. According to the Australian Bureau of Statistics in 2015, 47.5% of divorces involved… read more

Know about the Personal Property Securities Register - Big Law

What is the PPSR?

| Business Law, Residential and Commercial Conveyancing | No Comments
What is the PPSR? Make an appointment The Personal Property Securities Act 2009 (Cth) commenced on 30 January 2012 and created a national online register where details of security interests... read more
Purchasing Land with a Pre Existing Lease - Big Law

Purchasing land with a pre-existing lease: Reversal of Commissioner of State Revenue v Di Sipio & Anor [2015] QCA 198.

| Business Law, Residential and Commercial Conveyancing | No Comments
Purchasing land with a pre-existing lease Make an appointment On 20 October 2015 the Queensland Court of Appeal, in the case of Commissioner of State Revenue v Di Sipio &... read more