Amendments to Retail Leases Regulations 2022 (Vic)
By Evelyn Marcou, Principal
On 27 September 2022 the Retail Leases Amendment Regulations 2022 (Vic) (Amendment) was passed by the Victorian Parliament and comes into effect on 1 December 2022.
The Amendment makes changes to the Retail Leases Regulations 2013 (Vic) (Regulations), which brings the prescribed form Landlord disclosure statements contained within the Regulations into line with the 2020 amendments made to the Retail Leases Act 2003 (Vic) (RLA).
A summary of the changes is as follows:
Schedule 1 and Schedule 2
- The cover page note to the Landlord disclosure statements for premises not located in shopping centres and premises located in shopping centres are both updated to confirm the disclosure statement and a copy of the proposed lease must be given at least 14 days before entering into a lease, as required by Section 17(1) of the RLA. If the disclosure statement and lease are provided to the tenant less than 14 days before the lease is entered into, the lease commences 14 days after the landlord has provided the disclosure statement and lease.
- Sections relevant to outgoings estimates in Landlord disclosure statements are updated to include notes referencing a Landlord’s liability for certain costs with respect to maintenance and repair obligations under Section 52 of the RLA.
The Landlord’s disclosure statement on renewal now requires the Landlord to provide details of any changes from the previous disclosure statement given in relation to:
- renewal of the lease;
- alteration or demolition works planned or known to the landlord to the premises or building/centre including surrounding roads during the term or any further terms;
- other matters which may materially affect the tenant’s ongoing business which are not referred to in the lease and alteration or demolition works planned or known to the landlord to land adjacent to or in close proximity to the premises or building/centre during the term or any further terms; and
- any other costs not included in outgoings and not referred to in the lease.
This reflects the requirement under Section 26(2)(a) of the RLA which was also introduced under the 2020 amendments.
General Comments Regulations
The 2022 Regulations do not amend the prescribed assignor disclosure statement at the Principal Regulations, Schedule 4 (Disclosure statement – Assigned lease where ongoing business).
The changes serve as a timely reminder to Landlord’s as to when a Disclosure Statement must be given to retail tenants. We will be updating our templates to ensure they comply with the Regulations.