The place to access your Free Legal Rights Information

Download PDF

Retail Shop Leases Act 1994 – 25 November 2016

Retail Shop Leases Regulation 2016 – 2 December 2016

Retail Shop Leases (Transitional) Regulation 2016 – 25 November 2016

Summary

At least 7 days before a prospective lessee of a retail shop enters into a retail shop lease (the prescribed disclosure date), the lessor must give the prospective lessee: (a) a draft of the lease; and (b) a disclosure statement. The consequences of a failure to comply are set out in section 21F of the Act. Note: There are similar disclosure requirements for assignment of a retail shop lease – see from section 22AA of the Act onwards. For the definition of ‘retail shop’, refer to section 5B of the Act. For the definition of ‘retail shop lease’, refer to section 5A of the Act.

  • Sections 5, 5A, 5B, 5C, 5D, 12, 13, 21, 21A, 21B, 21E, 21F, 22A, 22AA, 22D, 22E, 50A, Schedule; Regulations 2, 3, 6, 7, 8, Schedule 1 of the Retail Shop Leases Regulation 2016

Within 30 days after a retail shop lease is signed by the parties, the lessor must give the lessee the signed lease document or a certified copy of the signed lease.

  • Sections 21, 21A, 22

A retail shop lease must not contain a provision requiring the lessee to make any payment other than for the following: (a) rent; (b) if specified in the lease, the following- (i) the lessor’s outgoings, or the specified part of the lessor’s outgoings, for the retail shopping centre or leased building in which the leased shop is situated; (ii) damages for breach of a term of the lease; (iii) an indemnity given by the lessee to the lessor for loss or damage suffered by the lessor as a result of the actions or omissions of the lessee or a person acting for the lessee; (iv) interest on arrears of rent or outgoings; and (c) the lessor’s reasonable legal or other expenses incurred in responding to a request by the lessee for- (i) a variation of the lease, including, for example, a rent concession; or (ii) the lessor’s consent to the lessee entering into a sublease or licence with another person in relation to the leased shop. For what constitutes the ‘lessor’s outgoings’, refer to section 7 of the Act.

  • Sections 7, 15, 16, 17, 24, 37, 38, 38A, 38B, 38C, 40, 40A, 41, 47, 48

If, under a retail shop lease, the rent is or may be calculated either in whole or part as a percentage of the turnover of the lessee’s business carried on, or to be carried on, in or from the leased shop; THEN the lease must specify the formula to be used to calculate the rent.

  • Sections 9, 25

If a retail shop lease provides for a review of the rent payable under the lease during the term of the lease, or under an option to renew or extend the lease, the lease must state the timing of the reviews and the basis on which each review is to be made.

  • Sections 27, 36, 36A

A person must not, as lessor or for the lessor, under or in relation to a retail shop lease, seek or accept the payment of key money or any amount for the goodwill of the lessee’s business carried on in or from the leased shop. For the definition of ‘key money’, refer to the Schedule of the Act.

  • Sections 5, 39, Schedule

A lessor (and also a lessee) must not, in connection with a retail shop lease, engage in conduct that is, in all the circumstances, unconscionable.

  • Sections 46AB, 46A, 46B, 49

A provision of a retail shop lease requiring the lessee to refurbish or refit the leased shop is void unless the lease gives general details of the nature, extent and timing of the refurbishment or refitting required.

  • Section 50B

A party to a retail tenancy dispute may lodge notice of the dispute with the government. As soon as practicable after the dispute notice is lodged, the government must: nominate a mediator to mediate the retail tenancy dispute; and give written notice to the parties to the dispute of- the mediator nominated to mediate the dispute; and the time, date and place of the mediation conference to be conducted by the mediator. If the parties to the retail tenancy dispute reach an agreement on the solution of the dispute at the mediation, then the agreement must be put into writing and signed by or for the parties. A failure to mediate will trigger section 63 of the Act. For the definition of ‘retail tenancy dispute’, refer to the Schedule of the Act.

  • Sections 5, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 83, 94, 97, 103, 115, Schedule; Regulation 9 of the Retail Shop Leases Regulation 2016
Reason for Law

To promote efficiency and equity in the conduct of certain retail businesses in Queensland. (Section 3)

Relevant links

Retail Shop Leases [Queensland Government]

Forms & Guidelines – Retail Shop Leases

Application process – retail shop lease disputes [QCAT]

Non-government guide: Dealing with difficult landlords when business for sale [requesting consent for assignment of lease]

Critique

Section 9A: notes forming part of an Act is not common for Acts of Parliament.

It would be beneficial to have the definition ‘retail shop lease’ contained in one definition as opposed to multiple to aid the public’s understanding of the Act.

Media Statement

Palaszczuk Government delivers for small businesses [Queensland Government]

Suggested further reading

Advertising

APL-advertising-500

× Note: Advertising on this webpage does not indicate that the entity advertising has any specialist expertise or accreditation. If specialist expertise or accreditation is promoted by the advertiser, they will have provided such information in their logo with no involvement from Access Point Law. It is expressly made clear that Access Point Law does not guarantee any level of expertise or accreditation of any advertiser and does not guarantee the accuracy of advertising information. You are encouraged to make your own enquires.

The author expressly disclaims all liability for loss or damage arising from your use or reliance on advertising information published at any time on this website.

Disclaimer: The information published on this webpage has been provided free for the benefit of the public and does not act as advice to any individual or other entity. If you require advice relating to your situation, go visit your professional adviser. The author and any third party advertising on this webpage expressly disclaim all liability for loss or damage arising from your use or reliance on the information published at any time on this webpage.

PLEASE NOTE: The information published on this webpage may be out-of-date. Please compare the currency date of the Act/Regulation against that published on the Office of the Queensland Parliamentary Counsel website. If you require access to Commonwealth statute law, please visit the ComLaw website. If you require access to the local council laws (by-laws), please visit the Local laws database.

Featured image from Flickr Commons – https://www.flickr.com/photos/internetarchivebookimages/14776408702/

APL-SS BULLETINGLOBAL LAW PROGRAM LOGO

Access Point Law | ABN 85 103 203 656
Copyright 2015 Andrew Bird