South Australian Current Regulations

[Index] [Table] [Search] [Search this Regulation] [Notes] [Noteup] [Previous] [Download] [Help]

RETAIL AND COMMERCIAL LEASES REGULATIONS 2010 - SCHEDULE 1

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:



AustLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback