Retail Leases Victoria Update - a reminder for landlords

On 27 September 2022, the Victorian Government gazetted the Retail Leases Amendment Regulations 2022 (Vic) (Amendment) to amend the Retail Leases Regulations 2013 (Vic) (Regulations). The 2022 Regulations effect changes to the prescribed forms of disclosure statement to be provided by landlords for retail premises leases under the Retail Leases Act 2003 (Vic) (Act).

Background

The Retail Leases Act 2003 (Vic) (Act) requires landlords to provide a disclosure statement to tenants in certain circumstances. The disclosure statement must be in the applicable prescribed form.

As the 2022 Regulations come into operation on 1 December 2022, the new forms of disclosure statement must be used for all leases entered into on or after that date. The layout of the statement does not need to be the same as the prescribed form, but the new wordings must be implemented to ensure compliance with the 2022 Regulations.

Key changes

The 2022 Regulations amend the prescribed forms as follows:

Schedule 1 – Landlord's disclosure statement – Retail premises not located in retail shopping centres

1. The landlord must give their tenant a disclosure statement and copy of the proposed lease no later than 14 days before the lease is entered into. If changes are made to the copy of the proposed lease that had been given to the tenant, the landlord must notify the tenant of these changes when giving them the updated lease no later than 14 days before the lease is entered into. If the disclosure statement and lease is given later than 14 days, the start date is taken to be 14 days after they are given to the tenant.
2. New mandatory explanatory guidance notes are inserted noting the landlord's repair obligations under section 52 of the Act.

Schedule 2 – Landlord's disclosure statement – Retail premises located in retail shopping centres

1. The landlord must give their tenant a disclosure statement and copy of the proposed lease no later than 14 days before the lease is entered into. If changes are made to the copy of the proposed lease that had been given to the tenant, the landlord must notify the tenant of these changes when giving them the updated lease no later than 14 days before the lease is entered into. If the disclosure statement and lease is given later than 14 days, the start date is taken to be 14 days after they are given to the tenant.  
2. New mandatory explanatory guidance notes are inserted noting the landlord's repair obligations under section 52 of the Act.

Schedule 3 – Landlord's disclosure statement on renewal of lease

New disclosure items are inserted requiring the landlord to disclose ‘details of any changes from previous disclosure statement’ 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.

The 2022 Regulations do not amend the prescribed assignor disclosure statement at the Principal Regulations, Schedule 4 (Disclosure statement – Assigned lease where ongoing business).