Retail Leases Update for Agents and Landlords
By Phillip Leaman
29 January 2019
The Victorian Small Business Commissioner has updated the form and format of the Information Brochure for retail leases.
Pursuant to Section 15 of the Retail Leases Act 2003 (Vic), as soon as a landlord enters into negotiations with a prospective tenant about a lease, the landlord (of if acting through an agent, the agent) must give the party a copy of the proposed lease (without specifics) and copy of the information brochure published by the Small Business Commission.
Please note that the Information Brochure has changed and all landlords and agents should start using the new form immediately. A copy can be downloaded from the Victorian Small Business Commissioner Website.
The Victorian Small Business Commissioner proposes to start taking an active role in enforcing this provision by the giving out of warning letters and then prosecute repeat offenders seeking penalties of $8,000 per offence.
It is a timely reminder for landlords and agents to ensure that landlords are compliant with the Retail Leases Act 2003 and that their lease is drafted correctly. Landlords also need to ensure that they comply with their various obligations in the Retail Leases Act 2003 including that of giving tenants notice of the last date that an option can be exercised and annual statements of outgoings to name a couple.