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A new NSW Retail Leases Act is being introduced from 1 July 2017. The NSW Government says the new Act will create more certainty, transparency and fairness for retail businesses and landlords.

As a result of the changes, REINSW has updated its Retail Lease Agreement FM00910, which will be available from 1 July 2017 on REI Forms Live or in print from the Store.

Advice and help on the changes is available for Members from the REINSW Helpline on 02 9264 2343.

What are the main changes?

• No minimum term. There is no requirement for a lease to have a minimum term of five years
• Copy and registration of lease. All leases must be signed and returned to the tenant within three months of the lease being signed.  Leases exceeding three years must be registered
• Liability for outgoings is limited to those disclosed in the lessor disclosure statement. Landlords must disclose all the outgoings in the disclosure statement if it wishes to recover such outgoings from a tenant
• Lessor disclosure statement. There will be a new prescribed form
• Retail Lease preparation fees. The landlord cannot recover mortgagee consent fees
• Non-retail premises. ATMs, internet booths, public telephones and vending machines are not retail premises and excluded from the Act
• Consent to assignment.  A landlord may withhold consent to assignment if the retail shop lease was awarded by public tender and the proposed assignee fails to meet any criteria of the tender
• Bank guarantee. Bank guarantees must be returned within two months of the lessee complying with the obligations under the lease
• Demolition. A lessor may rely on a demolition clause if it can prove that demolition cannot be practically carried out without vacant possession of a retail shop
• Monetary limit on Tribunal’s jurisdiction. NSW Civil and Administrative Tribunal will have the jurisdiction to hear claims up to $750,000.