A retail lease is a type of commercial lease in premises that are wholly or predominantly used for retail shop business. In NSW retail lease is governed by Retail Lease Act 1994 (NSW). This Act can be very complex at times and a solid understanding of the requirements imposed by the Act on the Landlord and the tenant is imperative for the successful operation of the business.
Some of the key features of the Retail Lease include:
A disclosure statement is a very important document which encapsulates all the essential terms of the lease. If you are a tenant and have received your disclosure statement, you should contact your lawyer immediately to review the disclosure statement.
Generally, 3 months rent is required by the lessor. However, this may vary depending upon the terms of the lease.
Rent can be reviewed in different ways. It is very important to look at the particular method of calculating rent review in your lease. Prior to signing your lease agreement, you must seek advice from a lawyer and obtain a clear idea about the precise method of calculating rent review.
Understanding Fit-Out Clause:
Fit-out clause addresses the extent of the fit out required in the event of a termination, expiration or surrender of the lease and the allocation of cost between the parties. It is important to be aware of your obligation under the fit out clause.
Relocation and Demolition Clause:
This clause contains useful information as to what will happen to your business if the building is required to be demolished or relocated to some other areas.
These are some of the very basic features of a Retail Lease. As pre-contractual negotiations may form part of the lease contract, it is very important to review the terms of the lease and negotiate with the other party. If you require professional assistance in relation to your lease agreement, you could contact us on (02) 8379 1811 or email@example.com