Schedule 1—Form of disclosure statements
Form 1—Disclosure
statement under section 12 of Retail and Commercial Leases Act 1995
Information for lessees
Please read the following information carefully.
What is a lease?
A lease is a very important document. It is a legally binding contract between
the lessor (landlord) and the lessee (tenant). It sets out the rights and
obligations of the lessor and the lessee.
A document that binds the lessee to enter into a lease or to take a shop on
lease for a renewed term should be treated as if it were the lease.
What should I look for in a lease?
The main features to consider are—
• the term of
the lease;
• whether there
is an option to renew or extend the lease (and the method of exercising any
such option);
• the rent and
the basis for rent reviews;
• the amounts
that the lessee will have to pay in addition to rent eg fit out costs,
maintenance and repair costs and shared operating expenses;
• the
consequences of breaching a term of the lease.
Make sure you read the whole document and understand the obligations it will
place on you, especially the extra charges in addition to rent that you will
have to pay.
If the lease is a sublease, you should seek information about the lessor's
rights and obligations under the head lease that are relevant to the lease of
the shop.
What information is the lessor required to give me?
The lessor must give you a copy of the proposed lease and this disclosure
statement. The disclosure statement must contain the matters set out in
section 12 of the Retail and Commercial Leases Act 1995 .
What should I do before signing a lease or other binding document?
Do not sign until you understand exactly what your obligations under the lease
will be.
Before signing a lease or other binding document, you should obtain
independent legal and financial advice.
• You should
discuss the lease (or any agreement for a lease) and the disclosure statement
with your own lawyer or leasing adviser.
• You should
seek advice about the financial commitments under the lease from your own
accountant or recognised financial or business adviser.
• You should
also seek advice from an association representing the interests of lessees.
Before signing a lease or other binding document, oral representations made by
the lessor or the lessor's agent on which you have relied should be reduced to
writing and signed by or on behalf of the lessor.
Before signing a lease or other binding document, the lessee should sign an
acknowledgment of receipt of the disclosure statement.
1—Details of shop
Address: [Provide sufficient details to identify the shop.]
Lettable area:
[Specify in square metres.]
The shop may only be used for: [Specify the
permitted uses.]
2—Term of lease
Term of lease:
3—Renewal or extension of lease
[Tick 1 box.]
☐ There is no
right to renew or extend the term of the lease.
☐ The lease
gives a right to renew or extend the term of the lease as follows:
[Insert
details.]
4—Access to shop
Hours during which the lessee will have access to the shop outside trading
hours:
Date on which the shop will be available for occupation:
5—Monetary obligations
The lessee's obligations to pay rent, to pay or reimburse outgoings, to make
or reimburse capital expenditure and any other monetary obligations imposed on
the lessee are set out in Appendix A.
6—Retail shopping centre details
[Tick 1 box.]
☐ The shop is in
a retail shopping centre within the meaning of the
Retail and Commercial Leases Act 1995 .
See Appendix B for details.
☐ The shop is
not in a retail shopping centre within the meaning of the
Retail and Commercial Leases Act 1995 .
7—Consequences of breach
The legal consequences of a breach of a term of the lease (including the
consequences of early termination of the lease by the lessee) as set out in
[insert clause numbers or other identification of relevant components of
lease] of the lease are as follows:
[Insert brief description.]
8—Warnings
Oral representations made by the lessor or the lessor's agent on which the
lessee has relied should be reduced to writing and signed by or on behalf of
the lessor before the lessee enters into the lease.
The lessee should obtain independent legal and financial advice before
entering into the lease.
Date:
Signature of lessor:
Name:
Address:
Acknowledgment of receipt
I acknowledge receipt of this disclosure statement including:
[Tick 1 or more
boxes as applicable.]
☐ Appendix
A—Monetary obligations under lease
☐ Appendix
B—Retail shopping centre details
☐
Attachment—Shop fitting or refitting obligations
☐
Attachment—Fixtures, plant or equipment obligations
☐
Attachment—Sinking fund obligations
☐
Attachment—Proposed changes to shopping centre
☐
Attachment—Current tenant mix
☐
Attachment—Proposed changes to current tenant mix
☐
Attachment—Details of tenant association
Date:
Signature:
Name:
Address: