The Retail Leases Amendment (Review) Act 2017 commenced on 1 July 2017. It provides for significant changes to the Retail Leases Act 1994 (NSW) (the Act). In this article, Elizabeth McDonald of our property and planning team considers the recent changes to the Act and the impact on landlords and tenants.
Removal of the requirement for a minimum 5 year lease term.
Excludes, from the scope of the Act, leases of premises used for certain non-retail purposes including ATMs, vending machines, public telephones, children’s rides, self-storage units and storage lockers.
Landlord’s disclosure statement
The demolition provisions apply even if only part of the building of which the premises forms part will be demolished. The landlord may only terminate where the demolition cannot be carried out without vacant possession of the premises.
Lease execution and registration
The landlord cannot recover from the tenant expenses incurred in obtaining mortgagee’s consent to lease.
Return of bank guarantee
The landlord is required to return a bank guarantee to the tenant within 2 months after the tenant completes all obligations secured by the bank guarantee.
This article is not legal advice. It is intended to provide commentary and general information only. Access to this article does not entitle you to rely on it as legal advice. You should obtain formal legal advice specific to your own situation. Please contact us if you require advice on matters covered by this article.