Retail Shop Leases Amendment Bill 2015

Overview

This bill rewrites the rules for retail shop leases in Queensland, following a long statutory review of the Retail Shop Leases Act 1994. It tightens what landlords must disclose to tenants, makes centre outgoings and marketing spending more transparent, frees outgoing tenants and their guarantors from ongoing liability when they assign a lease, and removes coverage of the Act from large shops over 1000m2 and predominantly non-retail tenancies.

Who it affects

Small shop tenants in shopping centres, their guarantors, franchisees, sublessees and shopping centre landlords are the main groups affected. Large retailers over 1000m2 and professional offices in predominantly non-retail buildings lose the Act's protections.

Key changes

• Landlords must give tenants a fresh disclosure statement within 7 days after a lease is renewed, and tenants can withdraw their renewal within 14 days
• When a tenant sells and assigns their lease, both the tenant and any personal guarantor are released from future liability, so long as disclosure was done properly
• Shops larger than 1000m2 and non-retail tenancies in predominantly non-retail buildings are no longer covered by the Act
• Landlords must publish an annual marketing plan and itemise centre outgoings and management fees, with any unspent promotion money carried forward
• Refurbishment clauses are void unless the lease spells out the nature, extent and timing of the work
• Landlords become liable for the cost of getting their own mortgagee's consent, and cannot pass most lease preparation costs onto tenants
• Landlords are not liable to pay business-disruption compensation for reasonable emergency responses or acts done to comply with the law
• QCAT and mediators gain jurisdiction over retail shop lease disputes about rent arrears