Retail Shop Lease

In Queensland the Retail Shop Leases Act 1994 (the Act) imposes disclosure requirements on the Lessor before a prospective Lessee or Assignee entering into a retail shop lease.

Under section 22 of the Act, the Lessor must give to the prospective Lessee or Assignee a draft lease agreement and a disclosure statement to fully inform the prospective Lessee or Assignee what would be the outgoings the Lessee would have to pay during the term of the lease at least 7 days before the prospective Lessee or Assignee enters into a retail shop lease.

The consequences of a Lessor failing to provide such disclosure statement in accordance with the Act or providing a defective statement to the prospective Lessee or Assignee are not insignificant. Under section 22(3) and (4), the Lessee or Assignee may terminate the lease by giving notice to the Lessor within 6 months after the lease is entered into and may claim for reasonable compensation for losses or damages.