Signing a lease is a major financial and legal commitment. It can be as significant as buying a house and signing a mortgage. As with all legal commitments it is essential to diligently and fully understand the obligations.

Bellco Law’s team of lawyers can assist with any review, dispute and negotiation of a retail shop lease.

The below FAQ’s are to provide a quick snapshot of what is a Retail Shop Lease and some of the protections afforded.

A lease is a legally binding contract where a lessor (a landlord) allows the lessee (a tenant) to occupy a certain area subject to certain terms and conditions.

A lease will be deemed a Retail Shop Lease when either of the three conditions are meet:

  • It is in a retail shopping centre (for example a single level building with 5 or more retail shops).
  • It is a multi-level building on a floor that contains at least 5 retail shops.
  • It is predominantly used for the carrying on of a retail business (for example a coffee shop or a hairdresser).

Legislation sets out the type of businesses that come within the definition prescribed. Bellco Law’s team of lawyers can assist with any determination of applicability. Generally, if you are engaged in the business of selling goods directly to customers for their use or consumption then you are very likely entering into a retail shop lease.

No, there is no minimum in Queensland. The length of term of lease is agreed between the lessor and the lessee.

For a lease that falls within the confines of the Retail Shop Leases Act (Qld) there are far higher degrees of protection for lessees than that found in commercial leases; by prohibiting certain leasing practices.

The Retail Shop Leases Act also imposes lessor obligations. Some examples of protections include:

  • Lease preparation costs – the lessor is prohibited (in certain circumstances) from passing on its legal costs incurred in relation to preparing a retail shop lease
  • Disclosure Statement – the lessor, during the negotiation stage, is to provide a disclosure statement with a draft copy of the lease 7 days before the lessee is to enter into a retail shop lease.
  • Rent reviews – only one method of annual rent review is permitted (e.g. CPI, percentage).
  • Renewal where no option – the lessor is to given notice to the lessee whether it intends to offer the lessee a new term of lease or not within a particular timeframe prior to the expiry date.

A disclosure statement sets out the essential terms (rent, term, use, outgoings, how rent increases, options) of a prospective retail lease. The intention of a disclosure statement is to allow a lessee to quicky see what commercial terms are proposed.

An incorrect or inaccurate disclosure statement allows a lessee to terminate the lease within a strict time frame. Bellco Law’s team of lawyers can assist with any review, dispute and negotiation of a retail shop lease.