Retail shop leases pre 1999
Application of the Act to older leases
The Commercial Tenancy (Retail Shops) Agreements Amendment Act 1998 applies to all new leases and extensions of existing leases entered into on or after 1 July 1999.
The 1998 Amendment Act does not apply to a lease renewed after 1 July 1999 that arise from an exercise of an option in place in a lease entered into before 1 July 1999. The earlier provisions of the Act cover these prior lease agreements.
The 1998 Act introduced to retail/commercial leases covered by the Act, more than thirty changes which:
- improve disclosure and information for prospective tenants particularly in the form of a new Tenant guide;
- support fairness and equity in rent review provisions including the prohibition of ratchet clauses (which took no account of current market rent levels);
- introduce a rationale to limit tenant contributions to valid landlord expenses;
- prohibit management fees being recovered from tenants by managing agents or owners managing their own properties;
- clarify obligations in relation to contributions to sinking, marketing and promotion funds;
- enhance protection by adopting nationally recognised audit standards; and
- extend the jurisdiction and powers of the Registrar and State Administrative Tribunal in support of these initiatives.