Tenant guide - Form 4 For new retail shop leases from 1 January 2013
What is a retail shop lease?
Entering into a lease for a retail shop means that you (the tenant or lessee) are entering into a legally binding contract with the landlord (or lessor). The lease agreement sets out your rights and obligations in relation to the use of the retail shop. A lease cannot override the requirements of the Act.
The Act regulates some of the provisions which may be contained in your lease agreement, including the following:
- rent reviews;
- options to renew a lease;
- terminating a lease;
- operating expenses (or outgoings); and
- trading hours.
Information you should have before entering into a lease
Before entering into a lease you should do the following:
- carefully read this tenant guide;
- carefully read the disclosure statement provided by the landlord or the landlord’s agent;
- carefully read any written lease document (including any assignments, extensions or deeds of variation); and
- obtain independent financial, legal and business advice.
Rent, the term of the lease, options, outgoings and related costs are open to negotiation with the landlord. Make sure that you understand these, and all other aspects of the lease, before signing it. To avoid disputes at a later stage, you should make sure that all agreements that you have made are in writing and that the lease documents are consistent with any representations made by the landlord or the landlord’s agents.
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