Reminder to use New Form Disclosure Statements
We are still, from time to time, seeing outdated Disclosure Statements being used.
The new Retail Leases Regulations 2013 (Vic), which applies to retail premises leases, came into operation on 22 April 2013. Amongst other things the regulations prescribe the new form of Disclosure Statements.
There are now 4 different forms of Disclosure Statement, and landlords (and assigning tenants) must ensure they use the appropriate one:
- Landlord’s Disclosure Statement—Retail Premises not located in Retail Shopping Centres
- Landlord’s Disclosure Statement—Retail Premises located in Retail Shopping Centres
- Landlord’s Disclosure Statement on Renewal of Lease
- Disclosure Statement—Assigned Lease Where Ongoing Business
One important difference in the new statements is the requirement that landlords (or assigning tenants) must disclose to the prospective retail tenant (or assignee) any alteration or demolition works to the premises or building/centre in which the premises is located. This includes with respect to surrounding roads or land adjacent to, or in close proximity to, the retail premises. This requirement applies for the term of the lease (or any further terms) where such works are planned or known to the landlord (or assigning tenant) at the time of disclosure.
Landlords (and assigning tenants) are still permitted to use the old form of Disclosure Statement prescribed under the 2003 Regulations up until 22 July 2013, but not be using it any longer.
Author: Cathy Drake
Published: 3 July 2014