Changes to the Retail Leases Act
Commercial Tenancy: 23 September 2020
The Retail Leases Amendment Act 2020 (Vic) came into effect on 23 September 2020 (except for Division 2 of Part 3).
This Act changes the obligations of landlords and tenants of retail leases. Changes have been made to the provisions relating to:
- Essential Safety Measures: A landlord will be able to agree with a tenant to pass on these costs;
- Disclosure Statements: A landlord needs to provide a disclosure statement earlier and provide a more detailed disclosure statement on renewal;
- Security Deposits: Must be returned within 30 days;
- Cooling-off: A tenant has a 14-day cooling off period after exercising an option to renew, and;
- Early rent reviews: A tenant can seek a market rent review before exercising an option to renew.
These changes apply to current leases and new leases.
Contact Sarah Ward, Accredited Specialist Commercial Tenancy, for advice on retail leasing.
Please note: The information in this article is provided for general information purposes only and does not constitute legal advice. It is not intended to be comprehensive or to apply to any specific circumstances. You should seek independent legal advice before acting on any information contained in this article.