Landlords Update

15 March 2012

Landlords should be aware that they may be required to provide a disclosure statement when varying an existing lease.  Landlords have an obligation under the Retail Leases Act 2003 to provide a disclosure statement at least seven days before a lease is entered into.  Certain variations to a lease will constitute a surrender of the existing lease and the grant of a fresh lease.

For example:-

  • changing the leased premises (including increasing or decreasing the size of the premises)
  • changing the parties
  • increasing the lease term
  • adding options for renewal

If a variation constitutes a surrender and re-grant of the lease the landlord will need to provide a disclosure statement in accordance with the Act and comply with any other statutory requirements for new leases, such as notifying the Victorian Small Business Commissioner of the new lease within 14 days of the lease being signed by all parties.

Please contact Mari Ross on 95100 366 or if you require further information.