Retail Leases Act 2020 (as amended) as at 22 September 2020. The changes property participants should be aware of in 2021.
- Essential Safety Measures (ESM) (Sections 3, 29, 41(2))
Lessee is now liable to pay for the cost of ESMs for the premises under Lease if specified within the Lease document entered into.
- Disclosure Statement (Section 17)
On entering a new Lease, the Landlord is now required to give to a Lessee at least 14 days before entering into the proposed Lease, a copy of the Disclosure Statement and the Lease as proposed.
The Lease is deemed to commence 14 days after the Disclosure Statement and Lease are given to the Lessee.
- Security Deposits (Section 24)
A security deposit is to be returned to a Lessee (if the Lessee has performed its obligations under the Lease) within 30 days of the Lease ending.
- Disclosure on Lease Renewal (Section 26)
The Landlord is required to provide a Disclosure Statement that is current (within 3 months of being given) at least 21 days before the termination of the Lease term, where the Lessee has exercised their option for a further term.
- Information to Give the Lessee about option period (Section 28)
The Landlord is required to give certain information to a Lessee at least 3 months before the option for a further term is exercised by the Lessee. Information noted within Section 28(1A) is:
- The date by which the option may be exercised;
- The rent for the initial first year term;
- The availability of an early rent review;
- The availability of a cooling off period;
- Any changes to the most recent Disclosure Statement.
- Early Rent Review (Section 28A)
Where the rent for a further term is reviewed to current market level, a Lessee can seek a market review within 28 days of the Landlord providing the information as set out above.
- Cooling Off Period (Section 28B)
A Lessee if exercising the option for a further term (and not sought an early rent review), can cool off and withdraw the exercise of option within 14 days of exercising.