What are retail leases and which act applies in Victoria?

What are retail leases and which act applies in Victoria?

The Retail Leases Act 2003 applies to a retail premises lease used wholly or predominantly for the sale or hire of goods by retail or the retail provision of services.

What is the difference between a commercial lease and a retail lease?

Commercial leases are leases which usually apply to premises used for warehousing, industrial or office spaces. A retail lease applies to premises which are used for the selling of goods such as a restaurant.

What is the Retail Leases Act NSW?

The Retail Lease Act NSW, 1994 (the Act) applies to the leases for retail shops and also for premises in a retail shopping centre. Signing a retail lease agreement is a financial commitment for both the Lessee and the Lessor.

How does a retail lease work?

It essentially lists who the Tenant is, who the Landlord is, the premises you will be renting, the term of the lease in years, any options to renew your lease, the base rent you will be paying, the expenses of the shopping center, any free rent you will get in order to build out your store, the security deposit, and …

Does the Retail Leases Act apply Victoria?

The RLA covers retail leases in Victoria. Under section 4, a retail lease includes any lease where the premises are “used, or are to be used, wholly or predominantly for the sale or hire of goods by retail or the retail provision of services”.

What is a retail lease in Victoria?

Under a retail lease, a tenant can’t be required to pay land tax or capital costs. Under a retail lease, a tenant doesn’t have to pay outgoings unless they are provided with an annual estimate of outgoings beforehand.

What is the difference between commercial and retail?

In short, commercial space and retail space are, in fact, two different things. “Commercial space” generally refers to office space. With commercial space, there may not be as many people wandering in and out, whereas “retail space” depends largely on foot traffic.

What is a retail lease agreement?

Most retail and restaurant businesses occupy their premises under a Lease. A Lease gives the Tenant exclusive use of the premises for a specified term, subject to the Tenant paying the rent and complying with the provisions of the Lease. There are Leases of part (with service charge) and Leases of whole.

What is the purpose of the Retail Leases Act?

An Act to make provision with respect to the leasing of certain retail shops and the rights and obligations of lessors and lessees of those shops, and for other purposes.

What is the Retail Leases Act 1994?

In NSW, the Retail Leases Act 1994 is the governing authority on retail shop leases between the lessee (the tenant) and the lessor (the landlord), and contains the rights and obligations of both parties.

Can you exclude the Retail Leases Act?

The Act cannot be excluded from applying to a lease, and parties cannot make the Act apply to a lease. Nothing prevents sections of the Act being incorporated into a lease.

When does retail Lease Act come into effect?

The Act does not apply to leases for a term of less than 6 months. However, when a Lessee occupies a retail shop for more than 1 year, either by a series of consequential short term or under the holding over provisions of a 6 month lease, the terms of the Act come into effect.

What does vsbc do under Retail Leases Act 2003?

The Victorian Small Business Commission (VSBC) has a number of functions under the Retail Leases Act 2003 (the Act). As well as dispute resolution and mediation services, one of our main functions is to provide landlords, tenants and other relevant parties with information about the operation of the Act.

Who is the Registrar of retail tenancy disputes?

Registrar means the Registrar of Retail Tenancy Disputes referred to in Part 8. (b) are used, or proposed to be used, for the carrying on of any business (whether or not a business prescribed for the purposes of paragraph (a)) in a retail shopping centre. Sections 5 and 6B limit the retail shops to which this Act applies.

Can a ratchet clause be included in a lease?

A “ratchet” clause is one that states the rental shall not be decreased when a market review or CPI review occurs. These clauses are excluded under the Retail Leases Act, however, some landlords still attempt to include them in leases.