Retail and Commercial Leasing

The lease describes in detail and specifies:

• The location and size of the retail shop
• The formula for calculating the rent
• Rent review during the course of the lease
• Contributions to outgoings
• Permitted use and trading hours of the leased premises
• The term of the lease and any option for a further term

If the retail shop is in a shopping centre, the lease should also contain a plan of the centre identifying the specific premises to be leased.

A lease for a period of less than six months (short term lease) is not required to comply with the Retail Shop Lease Act 2004. The Act prohibits a landlord from seeking or accepting any payment of key money or for the goodwill of the tenant's business.

Tenants who lease less than five retail businesses must obtain legal advice report and financial advice report and provide completed reports to the landlord before entering into a lease or assignment of lease.

The Retail Shop Lease Act 2004 requires parties to fulfill their disclosure obligations by providing disclosure statements that are designed to make the essential information of the lease easy to access.

The landlord is responsible for the legal and other expenses in relation to the preparation of the lease, the extension of the lease or for submission of lease for the reassessment of stamp duty. The landlord may require the tenant to pay registration fees, survey fees and reasonable expenses for obtaining mortgagee's consent. The landlord can pass the legal cost to the tenant (or assignee) for the assignment of the lease or for any changes to the changes requested by the tenant.

The landlord may ask tenant to provide a personal guarantee or lodge a security bond or bank guarantee. Bond or guarantee may be held in a trust account by the lawyers or real estate agents and must be secured. Rent in advance must not be for more than the rent payable for one rental period under the lease.

The Property Law Act 1974 requires that the lease be registered if the term of the lease is more than three years. Although it is not compulsory, leases of the lesser period may also be registered. Registration of the lease affords protection to the tenant if the leased premises are sold by the landlord.

The Duties Act 2001 abolished duty on any new lease or renewal of a lease with effect from 1 January 2006.

The landlord is required to provide the tenant with a certified signed copy of the lease within 30 days of a lease being signed.

If there is a dispute between a tenant and landlord in regards to the lease or premises which is not resolved, either party can lodge a Notice of Dispute with the Queensland Civil and Administrative Tribunal and follow the dispute resolution process.