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Landlords, Watch This Space!
by Susan Sing, Jim Mullins
Retail Shop Leases Amendment Bill 2005Last Tuesday, the Minister for State Development and Innovation, Tony McGrady, introduced into the Queensland Parliament, the Retail Shop Leases Amendment Bill 2005 (the Bill) which, once enacted, will make significant changes to retail leasing laws in Queensland.
Importantly, the main implications of the Bill for landlords are:
Application of the Act- A simplified definition of a retail shopping centre
- Short term leases (6 months or less) are excluded from the Act except for the provision of trading hours
Disclosure Statements
- Tenants are allowed up to 6 months (formerly 2 months) to terminate a lease if a Landlord fails to provide a disclosure statement
- Major tenants (5 or more retail businesses in Australia) are permitted to waive the requirement of the landlord providing a disclosure statement
- It will be compulsory for a tenant and assignee to provide a disclosure statement
Rent, Rent Reviews and other contributions by Lessees- Tenants are required to pay the landlord’s expenses incurred in responding to a tenant’s request for a lease variation or consent to a sublease or licence
- A new basis is included for rental increases
- Landlords and major tenants can opt out of the Act’s rent review provisions if the tenant has obtained appropriate professional advice
- Tenants can require an early determination of current market rent prior to the exercise of an option
- The sinking fund provisions have been expanded to include all retail premises
Compensation- Compensation provisions have been expanded to include sublessees, franchisees and tenants holding over
Exercise of Options and New Lease- Landlords will be required to give a tenant written notice within certain timeframes of the date for the exercise by the tenant of an option and whether or not the landlord intends to offer a new lease
Relocation and Demolition Notification- The relocation and demolition notification clauses have been amended
Release of Assignor on Assignment- In an assignment, the assignor will be released from ongoing lease liabilities provided compliance with the disclosure provisions
Disputes- The timeframe for lodging a dispute at the end of the lease term to be extended from 4 months to 1 year
- Parties can be represented by an approved agent at a Tribunal hearing after applying to the Tribunal in writing and obtaining leave
- Tribunal orders can include declaratory orders and the right to rectify a lease with the consent of the parties to the dispute
The Bill will be tabled for review by the Scrutiny of Legislation Committee and will then be debated in Parliament. The next sitting date for Parliament is 9 August 2005.
The provisions of the Bill that apply to mandatory minimum retail shop lease standards will apply to
new leases
entered into after the enactment of the Bill. The amendments covering retail tenancy dispute resolutions will apply to
all retail shop lease disputes lodged after the enactment of the Bill.
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