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Australian Lawyers and Consultants

Dramatic Changes to Retail Tenancies Law

July 1998 -- reviewed May 1999

From 1 July 1998, the Victorian Retail Tenancies Reform Act came into operation. This Act contains some dramatic changes to retail tenancy law. The Act applies to all leases commencing after 1 July 1998, and can apply to existing leases if options take effect on or after 1 July 1998.

The landlord is required to provide the tenant (including prospective subtenants, franchisees and assignees) with a package of information including a copy of the proposed lease, a copy of the Retail Tenancies Information Booklet, and the Disclosure Statement (including details of property outgoings and a copy of the original disclosure statement in the case of subtenants and assignments) at least seven days prior to signing the lease. The Disclosure Statement must also contain an audited outgoings statement. The Act also provides that the landlord cannot charge rent from the tenant until he or she provides a disclosure statement. There are also restrictions on certain rent review clauses.

The new Act requires all landlords to provide tenants with a copy of the signed lease within 28 days of signing the lease. In addition, landlords’ legal costs involved in the preparation of the lease are not to be passed on to tenants.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

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