Important Changes to the Retails Leases Act.
1 July 2017 changes to NSW Retail Leases Act
Important Changes to the Retails Leases Act. Retail Leasing law has changed in New South Wales as of 1 July 2017. This has caused changes to both the Retail Lease, and the Disclosure Document precedents. The NSW Retail Leases Amendment (Review) Bill 2016 came into effect on 1 July 2017. The amendment brought in sweeping changes to how Retail Leases operate in New South Wales. Some, but not all the changes are reflected in the precedents. The changes include:
- a new Jurisdictional Limit for the New South Wales Civil and Administrative Tribunal (NCAT) when determining retail lease disputes.
- No minimum five-year term
- Compulsory Registration with strict time limits
- Bank Guarantee to be returned within 2 months
- Compensation for Tenants who validly terminates in the first six months
- The Lessor Disclosure Statement can now be amended prior to or after the lease has commenced.
- No Mortgagees Consent Fees – a landlord cannot charge a tenant mortgagee consent fees.
- Limitation of liability for undisclosed outgoings. The Act has undergone significant changes in relation to disclosure of outgoings. A tenant will not be required to pay any amount to a landlord for any outgoings (including management fees) unless the liability to pay was disclosed in the Lessor’s Disclosure Statement.
- The Act applies to Agreements for Lease
- The Act now applies to stalls in a Permanent Retail Market.
- The amendments clarify that the Act applies to proposed tenants and proposed
- NCAT’s powers to amend and vary a lease have been significantly expanded.
- The Registrar at the Office of the Small Business Commissioner may appoint a specialist retail valuer to determine a market rent review when the parties cannot agree on the choice of valuer.
- The protections relating to demolition in section 35 of the Act have been amended.
- Revenue from online transactions will not be included in turnover for the purposes of calculating percentage rent.
- There will now be an online rental bond service.
Notes covering all of the above are included with each of the Retail Lease and Disclosure Document downloads, so that you are aware of all the changes to leasing procedure.
Our precedents have been updated in accordance with the NSW Retail Leases Amendment (Review) Bill 2016. The new documents should be used for all new Retail Leases commencing after 1 July 2017.