February 4, 2022
If you are a business owner, it is likely that at some point, you need to enter into a lease to run your business. If your lease is considered a “retail lease” within the definition of Retail Leases Act 1994 (NSW), the Act applies. The main purpose of the Act is to put in place certain protections for the tenant as the weaker party.
If the lease is a “retail lease”, landlord and tenant should follow certain procedure to enter into the lease.
At the time of advertising and negotiations, a copy of the proposed retail lease and a copy of Retail Tenancy Guide must be provided to the prospective tenant.
Lessor Disclosure Statement (LDS)
LDS is an important document that must be given to the tenant at least 7 days prior to entering into the lease. If LDS is not provided to the tenant or is materially false and misleading, the tenant can terminate the lease within 6 months of entering into the lease and claim reasonable costs incurred such as costs of fit out.
Not later than 7 days after receiving the LDS, the lessee (the tenant) must complete Part B (or Lessee Disclosure Statement) and return it to the Landlord or its lawyer.
Within 3 months of lessee returning the lease document to the lessor or its lawyer, the lease must be registered.