LEASES (Accredited Specialist)
You can check with our Accredited Specialist that your lease provides you with the best provisions possible.
- Accredited Specialist with the Law Institute of Victoria
- Member of the Commercial Leases Committee at the Law Institute of Victoria
- Expert Commercial & Retail Lease advice
- Expert Lease Dispute Advice
We act for Landlords & Tenants under Victorian State Law
NEW LEASE OR A RENEWAL OF LEASE - YOUR RIGHTS & OBLIGATIONS
The 2003 Retail Leases Act and the 2005 Retail Leases Amendment Act will have significantly impacted on your leases. If you have long term leases that are now expiring don’t be caught out by the many changes to your rights & obligations. Understand the meaning of:-
- The new minimum 5 year lease rule
- New landlord & tenant rights to terminate a lease
- New obligations on landlords regarding structural repairs
- New disclosure statement
- Injunctive relief, matters to be referred to mediation
- New unconscionable conduct provision
- Many new provisions regarding failures to comply
- New controls for security deposits
- New requirements for land tax
If you need expert legal advice regardingh your rights and obligations, contact our Lease Specialist.
RETAIL LEASE DISPUTES & COMMERCIAL LEASE DISPUTES
If both parties to leases were better informed of their rights and obligations, many disputes would not arise.
Parties to commercial tenancy agreements need to be aware of the difficulties which can result from a failure to make proper enquiries.
LANDLORD TO MAKE FULL DISCLOSURE
Prospective tenants should ensure that the landlord has made full disclosure of details such as:
- the condition of buildings, plant and equipment;
- that all outgoings are listed in the Disclosure Statement;
- the landlord’s title to the property including :
- any mortgages over the property (the landlord must obtain the mortgagee’s consent to the lease)
- the actual boundaries of the property, and
- any restrictions on the use of the land.
The landlord’s failure to disclose these matters, coupled with the tenant’s lack of awareness of this obligation, is a frequent, yet preventable cause of disputes.
Tenants should also make their own enquiries about possible developments which might affect their business. They should, for example, find out if there are any proposed changes to the shopping precinct; or if there are impending changes to planning requirements that might limit their business opportunities.
We can assist Landlords to obtain the necessary information for full disclosure to Tenants.
We can assist the Tenants to force Landlords to make full disclosure.
CHECKLIST
Landlords, for their part, need to undertake their own checks of the prospective tenant and any guarantor to the lease. Their checklist of issues to be covered in the lease should include:
- the rights of the landlord in the event of the tenant’s breach of the lease
- any limitations on renovations or maintenance work that can be carried out, including whether the landlord’s prior consent is required
- the state of the premises at the completion of the lease, and any obligations of the tenant for reinstatement of the premises
- whether the tenant is to be permitted to sub-lease part or all of the premises
- when, and in what circumstances, rent reviews should take place including if, and how GST and CPI increases are to be incorporated.
- Obtaining full company searches to check who are the correct parties
We can assist Landlords with the above checks
EXERCISE OF OPTION
The time for the exercise of an option by the tenant may be extended unless the Landlord gives timely notice to the tenant.
RENT REVIEW PROVISIONS
Rent review provisions in pre 1998 Act leases or renewal of leases derived from pre 1998 Act leases may in certain circumstances be void with the consequence that the rental determined may be quite different to that contemplated by the parties.
If you need legal advice regarding your rights and obligations, contact our lease specialist.
There have been many changes in the Act and regulations in the last few years. Relying on an old lease may expose you to risk and may allow a Lessor or Lessee to avoid certain obligations now covered in the new act.
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