The Retail Shop Leases Act 1994 (Qld) legislation was overhauled 25 November 2016, ten years since the last revision, with numerous amendments that will have significant impact on lessors, lessees, legal advisers, leasing /managing agents and specialist retail valuers. This alert focuses on the new requirements most applicable to accredited specialist retail valuers undertaking rental determinations.
Replacement of s 28A (Parties’ submissions to specialist retail valuer)
- The valuer must advise the lessor and lessee that the lessor and lessee may give the valuer a submission about the current market rent of the leased shop by a stated date decided by the valuer (the submission date)
- The submission date must be not less than 14 days after the valuer is agreed to or appointed under section 28.
- If the lessor or lessee does not give a submission to the valuer by the submission date, the lessor or lessee is taken to have not made a submission for the purposes of this section or section 29(1)(c)(ii).
- A lessor or lessee who gives a submission to the valuer must also give a copy of it to the other party by the submission date.
- A lessor or lessee who receives a copy of a submission may give the valuer a written response to it.
- The response must be given by a stated date decided by the valuer (the response date) that is reasonable in the circumstances
- If the lessor or lessee does not give a response to the valuer by the response date, the lessor or lessee is taken to have not made a response for the purposes of this section or section 29(1)(c)(ii).
Amendment of s 29 (Matters to be considered by specialist retail valuers) reworded so that the specialist retail valuer must determine the rent— (i) on the basis of the rent that would be reasonably expected to be paid for the retail shop if it were unoccupied and offered for leasing for the same or a substantially similar use for which the shop may be used under the lease; and …
Insertion of new s 29 (2) effective rent basis, for the determination of rent under a retail shop lease, means determining the rent on the basis of taking into account all associated advantages and disadvantages under arrangements made between the lessor and lessee that reflect the net consideration from the lessee to the lessor under the lease and associated arrangements.
There are a multitude of other extensive changes that are better dealt with by specialist legal advisors, pertaining to:
Tenancies Covered by the Act Commencement Date Changes to Lease Outgoings Disclosure Requirements Failure to Comply with Disclosure Provisions Renewal/Extension of Lease Lease Assignments Release of Assignor Guarantors Promotional Levies/Advertising Plans Compensation Redecoration Refurbishment Requirements Costs