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ARTICLE · 27 JULY 2017

New retail lease amendments in NSW

The Legislative Review Committee has recommended a flexible commencement date, given the commercial context of the bill.

AustraliaReal Estate and Construction

On 15 February 2017 the NSW Legislative Assembly passed the Retail Leases Amendment (Review) Bill. The more significant changes proposed in the bill include:

Minimum 5 year term scrapped

Removal of the requirement for a five year minimum lease term. This is particularly helpful for landlords who have previously been caught out granting short-term leases/licences only to find out that their property is effectively leased and off limits for five years. Carroll & O'Dea Lawyers acted for a restaurant operator in a large RSL club. He only had a one year licence to operate the bistro within the club. The club attempted to kick him out at the end of his term however we were successful (at first instance and then on appeal) in arguing he was a retail tenant and accordingly entitled to stay and operate his business for a full five year term. Landlords have in the past been unable to redevelop their shopping centres and shop premises because one single tenant who has been

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