Retail shop leases are quite different to other types of leases and disputes often arise especially around time limits.
There are strict time limits under legislation and in Queensland failure to comply can have devastating complications for all parties.
For example, if a Lessor fails to provide a disclosure statement and a copy of the draft lease at least 7 days before the lease is entered into, the Lessee may terminate the lease within 6 months.
Another example is that disclosure obligations are imposed on the Lessor upon the assignment of a lease.
Upon an assignment:
- The Lessee (Assignor) must give to the Assignee a disclosure statement at least 7 days before asking the Lessor to consent to the assignment;
- The Assignee gives a disclosure statement to the Lessee (Assignor) before the Lessors consent is sought;
- The Lessor gives a disclosure statement and the lease (a copy) to the Assignee at least 7 days before the assignment is entered into; and
- The Assignee must give a disclosure statement to the Lessor before the assignment is entered into.
When it comes to options to renew the legislation requires a Lessor to remind the lessee of the option to renew despite anything else in the lease which may be to the contrary. If a Lessor fails to give notice there is a maximum penalty of 40 penalty units which equates to $3,000.00.
The property law team have the experience and expertise to give sound practical advice on retail shop leases.