Be prepared: new QLD retail shop lease laws announced to start 25 November 2016
Written by Jodie Masson and Ben Malone on September 14, 2016
Landlords and leasing agents with Queensland retail property must act now to avoid unintended losses as sweeping retail lease legislation reforms will soon become law in that State on 25 November 2016.
Following a lengthy review of the current scheme, significant changes to the Retail Shop Leases Act 1994 (QLD) (RL Act) have been passed by the Queensland parliament and represent a significant departure from the status quo. Some of the changes include:
- some businesses will no longer fall under the RL Act
- tenants will be able to retract their option exercise
- make good clauses could be void if too vague
- tenants can waive the 7 day disclosure statement waiting period
- ratchet clauses will be permitted, but only for ‘major tenants’
The table below shows how some of the ‘big ticket’ changes in Queensland stack up against the similar retail lease laws across Australia. For those with national portfolios, it is important to understand that there are still significant differences across the Australian jurisdictions.
Getting ready for the changes
Landlords and managing agents will need to ensure that their standard lease documents, heads of agreements and disclosure statements are updated so as to be compliant with the changes to the RL Act. This should be done as soon as possible given the imminent commencement of the changes. Failure to do so may void parts of the lease or have substantial consequences (eg tenant termination rights that would not have existed before).
Tenants should also take note of the new rights afforded to them under the RL Act, which on the whole seek to largely improve the transparency in the relationship between the parties.
For further information, please contact Jodie Masson or Ben Malone.
Disclaimer: This article is intended to provide commentary and general information. It should not be relied upon as legal advice. Formal legal advice should be sought having regard to any particular facts or circumstances.
Insights
Make Good Clauses
When reviewing the case of T&L Alexandria v Sharvain Facades (2023) the court ruled on a vague “make good” clause, where unclear wording led to a costly dispute over redecorating obligations. The key takeaway? Ambiguity in leases — especially around make-good clauses — can cause headaches. Be clear and specific in your contracts to avoid messy surprises.
December 16, 2024
HoAs – binding or not binding?
Be careful when asking for a “non-refundable” deposit in a heads of agreement that has all the hallmarks of a binding contract, it might just lock you in to the deal. In this case Mr. Patel paid a non-refundable $50,000 deposit under an HoA, and when the vendor withdrew claiming the HoA was non-binding, Mr Patel sought (and was granted) specific performance. A good reminder that it’s important for your HoA to be explicitly non-binding if that is your intention.
https://pinpoint.cch.com.au/document/legauUio3697613sl1502889120/patel-v-sengun-investment-holdings-pty-ltd-2023-aplc-23-046
August 9, 2024
Finalist - Property Team of the Year
This recognition is a tribute to all of the hard work carried out by our lawyers and support staff, and also to our wonderful clients who have been a pleasure to work with, and who provide us with such rewarding transactions.
We look forward to enjoying a fun night with our peers at the LawyersWeekly Awards ceremony in August!
July 15, 2024
Guarantors Beware
Not all guarantees are created equal: understanding the risks associated with guarantees in property transactions and whether you might be forced to ‘pay the price’ for a purchaser’s non-completion.
June 18, 2024
Legal 500 (Asia Pacific) Guide 2023
Sincere thanks to our wonderful clients and hard-working team for supporting our inclusion in the Legal 500 (Asia Pacific) Guide as a leading firm in Real Estate for 2023
The Legal 500 has been analysing law firm capabilities across the world for more than 3 decades in over 150 jurisdictions. Their research is based on: “feedback from 300,000 clients worldwide, submissions from law firms and interviews with leading private practice lawyers, and a team of researchers who have unrivalled experience in the legal market.” – https://www.legal500.com/about-us/
February 10, 2023
"Excellence Awardee" - Boutique Firm of the Year - 2022 Australasian Law Awards
We are delighted that Massons has been selected as an “Excellence Awardee” in the category of “Boutique Firm of the Year” at the 2022 Australasian Law Awards.
Thank you to all of our wonderful clients who have supported our nomination in this category, and to our amazing lawyers and support staff for making this possible!
Wishing all the other Awardees the best of luck and looking forward to the Gala Dinner. A night out with our team is always cause for celebration – win, lose or draw!!
March 23, 2022
Australia's commercial property law experts