Some commercial leases relating to retail shops are governed by a special statutory regime contained in the retail leases act 1994. Can a retail premises lease within the meaning of s. Changes will support small retail business growth and sustainability now and into the future. Retail leases act 1994 as at 25 march 2020 act 46 of 1994 table of provisions long title part 1 preliminary note 1. Those of you who own a retail shop, or are operating a retail business under a lease, should be aware that recent changes to the retail leases act nsw 1994 the act have a significant effect on retail leases going forward. Dean claughton on 1 july 2017, several key changes were made to the retail leases act in new south wales that effect both landlords and tenants around the state. Under part 9a of the rla, certain retail leases at sydney airport are also exempt from that act, but are outside the ambit of this paper.
We offer fixed fees for all legal services relating to retail leases irrespective of time taken or complexity we believe that this approach is generous and provides an easy to understand practical solution in what can often be a complex logistical problem. The amending act introduces significant changes to the retail leases act 1994 nsw rla. The residential tenancies act tenants union tenants nsw. Certain retail shops excluded from the operation of this act 6. Amendments to the retail leases act makinson dapice. Any lease you enter into for premises in new south wales that are to be used as a retail shop will likely be subject to the retail leases act 1994. That longstanding question has finally been resolved.
This legislation is affected by amending provisions that have not yet come into operation or taken effect. An act to regulate commercial and retail leases and tenancies, and for other purposes. The office of the nsw small business commissioner and registrar of retail tenancy disputes suggests that the retail sector is changing. On 24 january 2014 i posted a summary of spirovski v univest asset merchant syndicators pty ltd 20 vsc 728 in which. This article was written to provide a highlevel overview and does not constitute legal advice, and i recommend that you obtain a professional opinion to. Retail leases act 1994 no 46 new south wales historical version for 1. Plain english guide to commercial, industrial and retail leasing leasing premises is a major investment decision, whether you are a landlord or tenant. Changes will support small retail business growth and sustainability now and into the. Continuing the theme of the application of retail legislation or, rather, the lack thereof we now look at the situation in new south wales. Retail shop leases act 1994 part 3 interpretation current as at 5 june 2017 page 11 authorised by the parliamentary counsel g premises that, if the premises were not leased, would be premises within a common area of a retail shopping.
Retail leases act 1994 as at 25 march 2020 act 46 of 1994. Commercial leases in nsw are generally not regulated by statute but by common law. It provides for significant changes to the retail leases act 1994 nsw the act. Authorised by the act parliamentary counselalso accessible at. Nsw landlords and tenants affected by changes to the. Summary of main changes to nsw retail leases act 1994. Responsible minister minister for finance and small business authorisation this version of the legislation is compiled and maintained in a database of legislation by the parliamentary counsels office and published on the nsw legislation website, and is certified as the form of that legislation that is correct under section 45c of the interpretation act 1987. Overview and changes to the retail leases act n171010 api. How to deal with nonpayment of rent in a retail lease. Plain english guide to commercial, industrial and retail. Retail leases act 1994 sect 39 grounds on which consent. Amendments to the retail leases act nsw department of.
A brief summary of the retail leases act craddock murray. Given the imminent commencement on 1 july 2017 of significant amendments to the nsw retail leases act 1994, it is an appropriate time to provide a refresher summary of the significant amendments. Commercial leases in nsw civil lawyers new south wales. The intention of the legislation is to ensure fair and efficient dealings between parties to retail leases. Changes to the retail leases act nsw key points for. This is particularly helpful for landlords who have previously been caught out granting shortterm leaseslicences. This commercial retail tenancy kit is suitable for the occupation of most strip type shops in new south wales. Only amendments that have commenced are incorporated.
Care needs to be taken in resolving disputes in which an allegation is made that an act or proposed act is prohibited by the retail leases act 2003. Different laws cover retail, commercial and residential leases. Minimum 5 year term scrapped removal of the requirement for a five year minimum lease term. What many people dont understand, however, is how complex a commercial lease can be and how it can be fraught with potential problems. The more significant changes proposed in the bill include. The amendments will improve standards of conduct between the parties to a retail lease, as well as increase the. This brochure constitutes the important information brochure about retail leases published by the victorian small business commissioner for the purposes of section 15 of the retail leases act 2003. In nsw, the retail leases act 1994 the act sets out legal arrangements between tenants and landlords for shops selling and supplying goods and services where the shop is less than 1,000 square metres and is used for a retail business. 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.
Advice for retail landlords and tenants amendments to the retail leases act 1994 nsw rla will come into effect on 1 july 2017 the changes are intended to increase transparency and certainty by increasing disclosure obligations, include provisions related to online retail sales and streamline access to justice and remedies. It is now a specific requirement under the act that a retail lease for a term of three years or more including any option period must be. Important disclaimer this publication provides general advice only and is not a legal advice about the operation of the retail leases act 2003. Section 6 limits the retail shop leases to which this act applies. Retail leases act has been developed and is delivered by minter ellison 12 october perth course timing. The act says a retail shopping centre is a group of premises where at least 5 of the premises are retail shops as listed in schedule 1 of the act. Responsible minister minister for finance and small business. We would like to show you a description here but the site wont allow us. No minimum term there is no longer a minimum 5 year term for a retail lease.
Further, this paper will not be dealing with short term leases, that is, leases with a. The retail leases act 1994 nsw regulates retail leasing. Retail shop means premises used, or proposed to be used. The intention of the legislation is to ensure fair and efficient. These changes have been in draft form for a substantial amount of time, and so it was no surprise when the legislation came into. Below, we look at the retail leasing provisions in new south wales under the retail leasing act 1994 nsw the act and the protections a lessee will have in case they can no longer continue operating from a premises. Authorisation this version of the legislation is compiled and maintained in a database of legislation by the parliamentary counsels office and published on the nsw legislation website, and is certified as the form of that legislation that is correct under section 45c of the interpretation act 1987. Massons australias commercial property law experts. The premises are owned by the same landlord and located in one or more buildings, usually joined by a common area. How do i know if the retail leases act applies to my shop. In verraty pty ltd v richmond football club ltd 2019 vcat 1073 the tribunal held that a lease could cease to a retail premises lease during the lease term. Articledocuments178claytonutzretailleasescomparativeanalysis. The act also applies to a lease of premises in a retail shopping centre. Review of nsw retail leases act shopping centre news.
These amendments will ensure the act increases transparency and certainty in the new south wales retail leasing sector. Retail leases amendments to the retail leases act february 2017 small retail businesses in nsw retailers create new jobs, stimulate regional economies and make a big contribution to their communities and the nsw economy. Retail leases are the most common type of leases used by community organisations. If your tenant in a retail premises fails to meet their rental payments in a timely manner, this is a breach of the lease agreement. The nsw government is looking at the law covering retail leases, the retail leases act 1994 nsw. Retail leases act 1994 schedule 1 schedule 1 retail shop businesses a full list of the types of retail businesses that require a retail tenancy lease under the retail leases act 1994 section 3 adult books and toy shops. When does retail leasing legislation apply in new south. Dealing with retail leases covered by the retail leases act. A retail lease is a type of commercial lease but the rights and obligations in a retail lease are governed by the retail leases act 1994 nsw called the act throughout this fact sheet. Some of the key areas hodgkinsons office will look. In particular, we look at how a lessee can assign a retail lease. Guidelines to the retail leases act 2003 4 similarly, where the act does not apply when the lease is entered into, the lease will not become subject to the act if there is a change in circumstances affecting its applicability other than the dispute resolution provisions of part 10, if the premises are retail premises. June 14, 2017 updated on february 14, 2019 its sometimes tough for business owners to know whether the retail leases act applies to their shopfront. This act applies to leases of retail shops, with certain limitations.
If you require a non retail lease visit commercial property lease. Retail leases act 1994 no 46 nsw part 1 preliminary part 1 preliminary note. The act governs many aspects of the relationship between the landlord and the tenant of leases that fall within the ambit of the act termed a retail lease. Litigation issues in retail leases in nsw2007 dr john keogh 4 retail leases act 1994 retail leases in new south wales have been regulated for the last sixteen years by the retail leases act 1994 the act. The nsw government says the new act will create more certainty, transparency and fairness for retail businesses and landlords.
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