A Disclosure Statement is a document that outlines important information and details about the lease so the tenant can understand – at a glance – the key elements of the lease.
For example, it may include:
- the term of the lease;
- whether there are options for further terms;
- the occupancy costs for leasing the premises (including rent and any outgoings);
- specific information for shopping centre leases;
- tenant’s fit-out requirements;
- if there are any relocation or demolition clauses.
Types of Disclosure Statements
There are four different Disclosure Statements used depending on the particular circumstance and these are found in the Retail Leases Regulations 2013.
You can access these individually by clicking on the Schedule links below. Ensure that you use the Disclosure Statement form that is relevant to your situation:
- Schedule 1: Non-shopping centre retail premises.
- Schedule 2: Shopping centre retail premises.
- Schedule 3: Renewal of a lease.
- Schedule 4: Assignment of a lease with an ongoing business.
If a Disclosure Statement is misleading, false or incomplete the tenant can take action that may result in termination of the lease.
Depending on the type of retail lease, different sections in the Retail Leases Act 2003 state that a landlord must adhere to the following timings:
- Signing a new lease. A landlord must provide a Disclosure Statement to the tenant at least seven days before the signing of a new lease (section 17).
- Exercising an option. If a tenant exercises an option to renew a lease, or has the right to do so, the landlord must provide a copy of the Schedule 3 disclosure statement to the tenant at least 21 days before the end of the current term of the lease.
- Agreement to renew the lease. If the landlord and tenant agree to renew the lease, the landlord must provide a copy of the Schedule 3 disclosure statement to the tenant within 14 days of the parties having reached agreement to renew the lease.