The Retail Leases Act (NSW) applies to all retail leases in NSW. The definition of retail lease encompasses any agreement under which a person grants another person a right to occupy a premises for the purpose of using the premises as a retail shop.
At it’s core, the Retail Leases Act is a piece of consumer protection legislation for small business . It is designed to address perceived imbalances in power that may exist between landlords and small business tenants.
As well as regulating particular terms of retail leases, the Act emphasizes the fundamental importance of disclosure before a retail lease is entered into.
Under the Act, it is illegal for a landlord to advertise property for a proposed retail use without first having:-
- A draft lease prepared; and
- both the draft lease and of any applicable retail tenancy guide ready to provide to prospective tenants.
Failure to meet these disclosure obligations will not only delay a transaction when a tenant is found, it will in fact constitute a breach of the Retail Leases Act, potentially resulting in liability for both landlords and their leasing agents. The current penalty imposed under the Act can be up to $5,500.
Failure to fulfill disclosure obligations can be both costly and time consuming for landlords and their agents.
At Everingham Solomons we have the expertise to assist both landlords and tenants in regards to the above disclosure issues, as well as any other retail lease concerns.
If you have any questions regarding retail leases, please do not hesitate to contact the experienced team at Everingham Solomons because Helping You is Our Business.
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