Retail Lease

A retail lease is typically given for property where the primary permitted use is the sale and supply of products and/or services.
The Retail Leases Act (Vic) 2003 (the “Act”) governs how retail leases are established and structured in Victoria. The Act levels the playing field between the landlord and renter in the following aspects when compared to a commercial lease:
• Requirements for mandatory disclosures. According to the Act, the Landlord must give the Tenant a Disclosure Statement (and ongoing disclosure) on the rented property. The disclosure document verifies for the tenant the rental space, what is included, incidentals such assigned parking, and an estimate of lease-related costs.

• Limitations on efforts to claim or recover specific expenses. The Act preempts inconsistencies in leases by prohibiting a landlord from recovering from the tenant fees such as land tax and capital upgrades made or capital costs spent by the landlord. The Act protects tenants by preventing the landlord from evading its restrictions and not meeting all requirements. When a lease fails to address a matter or is at odds with the Act, the Act takes precedence, and any clauses in the lease that are at odds with it are replaced by the pertinent part of the Act.