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ARTICLE · 13 NOVEMBER 2011

Retail lease bonds and dispute resolution options

Swaab Attorneys
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Landlords must ensure they comply with the the Retail Leases Act 1994 in respect to the lodgement of bonds.

AustraliaReal Estate and Construction
Wendy Conceicao
Wendy Conceicao
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In Brief

When the retail markets slow, disputes between landlord and tenant tend to arise and a claim on the bond money may soon follow. 

A Landlord must ensure that it complies with the provisions of the Retail Leases Act 1994 in respect to the lodgement of the bond.

Lodgement of security

Section 16C of the Retail Leases Act 1994, provides that a landlord must deposit a bond received with the Director General within 20 business days after:

  1. the date of receipt of the bond money; and
  2. the date the lease became binding on both the landlord and the tenant.

SSection 16C of the Retail Leases Act 1994 extends to an agent acting on behalf of the landlord.  The landlord may be liable for a penalty of up to $2,200 if the bond is not lodged within the time constraints above.

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