By Peter Northwood - BRM Real Estate
The Retail Leases Act 2003 is a complex piece of legislation putting many obligations onto Landlords and granting Tenants many benefits.
Being aware of your rights and obligations is essential to both Landlords and Tenants and there are many provisions in the Act that can affect your lease. Below are 3 things you may be interested to know:
1. You may be a retail tenant or landlord without even knowing it
Not All Retail Premises Are Shops. The definition of Retail premises under the Act is very broad and captures many tenancies that may not appear to be retail, not just shops. If you are offering goods or services for sale or hire, then you may be a Retail tenant with all the rights and benefits that go with that. This may include Estate Agents, Solicitors, Accountants, Insurance Brokers and other like businesses.
2. The Landlord must supply a disclosure statement
A landlord of retail premises is required to give a disclosure statement before a lease commences. A disclosure statement is a bit like a vendor’s statement provided at the sale of a property. Failure to provide a disclosure statement may allow a tenant to withhold payment of rental until a Disclosure statement is given.
3. You are entitled to a minimum 5 year lease
A retail tenant is entitled to a minimum 5 year lease, unless the parties to a lease seek an exemption from the Small Business Commissioner. If you are a property owner seeking a short-term tenancy, this provision may hamper future short term plans.
Do you need to know more about this important piece of legislation? Contact our expert property team at BRM Projects to see if we can help.
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