Entering into a retail shop lease: Key Changes Under the Retail Shop Leases Amendment Act 2016

Retail Shop Leases Amendment Act - Big Law

Entering into a retail shop lease: Key Changes Under the Retail Shop Leases Amendment Act 2016

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.

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. 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. 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 of the building is not used for retail business purposes; and
  1. 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 Big Law Solicitors on 1800 431 604 or email us at [email protected].

How We Can Help

Big Law Lawyers Strathpine offers you the same comprehensive suite of legal services that you would expect to only find in the city.

We are a successful well-established legal practice based in Strathpine, Brisbane. We have earned a reputation for providing trustworthy, practical legal advice to a diverse range of clients, in both Brisbane and regional Queensland.

Things to Read

Estate Planning for Blended Families

TRANSCRIPT Speaker.: At Big Law, we are big on providing you great legal help. If you have a family law, business law, wills and estates, commercial law, or conveyancing issue, we’re here to help. Now, here is your podcast. Dan: The family unit, as we know for many, can be complex. This is particularly the… Read More »Estate Planning for Blended Families

Buying a commercial property

Whilst the process of purchasing a commercial property is very similar in many respects to buying a residential property, there are a whole other set of matters to consider with this asset type.  The first issue to consider is what are your intentions or motivations for purchasing the property? Are you planning to run yourRead More »Buying a commercial property

Buying a manufactured home in an over 50s village

You may have reached the point in your life where you are sick of maintaining a large home and garden and would like to downsize. There are many options to consider, some of which are: Buying a small house or townhouse with a small yard; Buying in a retirement village which usually involves taking aRead More »Buying a manufactured home in an over 50s village

What is a reverse mortgage?

What do you do if you are over 60 without a regular source of income other than the pension as you have retired and find that you have to fund urgent renovations to your home? Or unexpected medical expenses? Or you would like to refinance high-interest credit card debt or other liabilities? As you areRead More »What is a reverse mortgage?

Podcasts to Listen to

Estate Planning for Blended Families

TRANSCRIPT Speaker.: At Big Law, we are big on providing you great legal help. If you have a family law, business law, wills and estates, commercial law, or conveyancing issue, we’re here to help. Now, here is your podcast. Dan: The family unit, as we know for many, can be complex. This is particularly the… Read More »Estate Planning for Blended Families

What Happens After You Sign an REIQ Contract?

TRANSCRIPT   Speaker 1: At Big Law, we are big on providing you great legal help. If you have a family law, business law, wills and estates, commercial law, or conveyancing issue, we’re here to help. Now, here is your podcast. Dan: If you are buying or selling, it’s inevitable that you may be thinking… Read More »What Happens After You Sign an REIQ Contract?

What You Need to Know About Commercial Leases

In this podcast, Legal Practitioner Director Sylvia Lopez discusses the complex nature of commercial leases and agreements.   TRANSCRIPT Speaker 1: At Big Law, we are big on providing you great legal help. If you have a family law, business law, wills and estates, commercial law, or conveyancing issue, we are here to help. Now,… Read More »What You Need to Know About Commercial Leases

Some very important estate planning roles you need to understand

When it comes to estate planning, it’s not uncommon for people to confuse a few very important roles. In this podcast, Estate Planning Solicitor Elise Jaques clears the differences among estate planning roles. TRANSCRIPT Speaker 1: At Big Law, we are big on providing you great legal help. If you have a family law, business… Read More »Some very important estate planning roles you need to understand