The Retail Leases Act 1994 (NSW) (“the Act”) governs Retail Leases in NSW.
Schedule 1 of the Act contains a lengthy list of retail “uses”.
In short, if the permitted use of your Lease is listed in this Schedule your Lease should be a Retail Lease.
In addition to this if your shop is in a “retail shopping centre” then your lease will also be considered a Retail Lease.
It is very important to take note of where your business may be a mixed use and cast your mind to what the “predominant use” may be. For example, if you are running a tattoo parlour but you also sell clothing and other accessories then you need to ensure that the wording of your permitted use on the Lease is tailored to ensure that the sale of the clothing and other accessories is a secondary use and not the “predominant use”. If the correct wording is not used then this additional wording could trigger the Lease being regulated by the Act.
It is important to know if your Lease is covered by the Act or not as there are many protections afforded to Tenants pursuant to the Act. As a Landlord you also have additional disclosure obligations in relation to outgoings and the like.
Further, under the Act a Landlord is prohibited from charging the Tenant Lease preparation costs for a Retail Lease. This differs from a Commercial/ Industrial Lease whereby it is common for a Landlord to pass on their legal costs to the Tenant.
If you or someone you know needs advice either drafting or reviewing a Lease Retail or Commercial contact our team of experienced solicitors today on 02 4627 3333.
Don’t get caught out signing a document you don’t understand or you have not received proper advice on.
This article was published on 11/02/26 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.