Changes to the Retail Leases Act 1994 (NSW) have been passed. The Retail Leases Amendment (Review) Act 2017 No 2 will commence on 1 July 2017.
Four key changes are:
- Disclosure Statements and Undisclosed Outgoings – tenants will not be liable for outgoings not disclosed in the Lessor Disclosure Statement. In addition, if the actual amount of any disclosed outgoing is more than was estimated in the Lessor Disclosure Statement, unless there was a reasonable basis for the inaccurate disclosure, only the amount as disclosed will be recoverable
- Disclosure statements and termination – if a tenant terminates a lease during the first six months as a result of not receiving, or as a result of receiving a misleading disclosure statement, the tenant may recover its costs of entering into the lease including fitout costs
- Minimum term – the minimum five year term has now been abolished
- Tribunal jurisdiction – NSW Civil and Administrative Tribunal's (NCAT) monetary jurisdiction is increased from $400,000 to $750,000.
Other changes have been made in relation to defining a retail tenancy, execution and registration requirements and the return of bank guarantees. See our article here for further details.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.