Retail Leases Act 2003 (Vic) Update
The Retail Leases Amendment Regulations 2022 which came into operation on 1 December 2022 provides for the following changes to the prescribed forms of the landlord’s disclosure statements in relation to retail leases:
Retail premises not located in retail shopping centres (Schedule 1) and retail premises located in retail shopping centres (Schedule 2)
The updated headnote in both disclosure statements set out that the statement must be provided by the landlord to the tenant at least 14 days before the signing of a new lease. If the statement is provided less than 14 days before a new lease is entered into, the lease will be taken to commence 14 days after the disclosure statement and proposed lease are provided to the tenant.
Explanatory notes have been inserted throughout both disclosure statements noting that ‘section 52 of the Retail Leases Act 2003 provides for the landlord’s liability for certain costs relating to repairs and maintenance work’.
Landlord’s disclosure statement on renewal of lease (Schedule 3)
The landlord must disclose ‘details of any changes from previous disclosure statements’ in relation to:
date on which the option to renew the lease or an agreement to renew the lease was entered into by the parties;
any alteration or demolition works, planned or known to the landlord, to the premises or building/centre, including surrounding roads, during the term or any further term(s);
any matters that may materially affect the tenant’s ongoing business not referred to in the lease;
any alteration or demolition works planned or known to the landlord, to land adjacent to or in close proximity to the premises or building/centre, during the term or further term(s); and
any costs arising under the renewed lease not including costs referred to in the statement of outgoings and the lease.
The updated prescribed forms of the above disclosure statements can be found in Schedules 1, 2 and 3 of the Retail Leases Regulations 2013. Landlords should ensure that the new prescribed form is used for any leases entered into on and from 1 December 2022.