The By Lawyers To do list precedent has been updated in the By Lawyers Leases (NSW) Guide to include a section on retail lease disclosure requirements of both the lessor and lessee.
New leases
At least seven days before a retail shop lease is entered into, a lessee must have been given a disclosure statement by the lessor. The maximum penalty for failing to comply is 50 penalty units.
If the disclosure statement is not given, is incomplete, or contains information that is materially false or misleading, the lessee may terminate the lease by notice in writing at any time within six months.
The lessor’s disclosure statement includes a lessee’s disclosure statement, allowing the lessee to set out representations made to the lessee. The Act requires the lessee to complete and give to the lessor this statement within seven days of receipt of the lessor’s disclosure statement. There is a penalty of 50 penalty units if this is not done, but there is no right for the lessor to rescind the lease.
Renewal
On renewal of a retail lease the lessor may provide an update together with a copy of the earlier disclosure statement, or a fresh one.
Assignment
If a lessee assigns a retail shop lease it is relieved from liability to pay money under the lease if it serves upon both the lessor and the assignee a copy of an assignor’s disclosure. This must be done at least seven days before the assignment.
Precedent update
The new section of the To Do list covers the time limits for retail lease disclosure in relation to:
- new leases;
- assignment; and
- renewal of existing leases.
Thanks
This enhancement was the result of user feedback. At By Lawyers, we pride ourselves on the cooperative and collegiate relationship we have with the firms using our commentary and precedents daily. We value the feedback that we receive as it helps us to continually improve our publications.