Frequently asked questions
A: Every time when the Lease is renewed (extended), the Landlord has to provide the Tenant with the Renewal/Extension documents (usually Memorandum of Extension of Lease or Addendum to Lease) together with updated Disclosure Statement (Retail and Commercial Leases Act 1995)
Q: What does "Rent Review to Market" mean?
A: Rent Review based on current market codition - is not just a Landlord's notice of increase based on his/her assesment of the market dynamics, but the process containing several steps - usually set out in the Lease Agreement, in order to determine the rent for the next period (Retail and Commercial Leases Act 1995)
Q: Is the Land Tax chargeable to the Tenant?
A: Land Tax can not be charged to the tenant assuming that particular Lease Agreement falls under Retail and Commercial Leases Act. Two most common cases where the Lease is excluded from the Act are:
- Annual rent is more than $400000 per year (net rent, GST excluded)
- Tenant is a public company or a subsidiary of a public company
Q: Does my commercial property have to have Asbestos Register?
A: All industrial and commercial premises must have up to date Asbestos Register. Asbestos Register is a summary of he visual inspection carried out on the property by compentent person. (OHS&W Act 1986, Regulations 2010)
Q: Is the tenant responsible for paying management fees?
A: Management fees are not recoverable by the Landlord if the terms of Agreement to Lease or formal lease does not provide it, or the property is not managed by registered Land Agent (a person required by the Act to be registered as an agent is not entitled to to commission or other consideration for services as an agent unless the person is registered as an agent, or is authorised in writing to act as an agent by the person for whom the services are rendered or a person authorised to act on behalf of that person) (Land Agents Act 1994)
Q: Can a Trust be listed as one of the parties in the Lease?
A: In all forms of commercial contract the parties need to be clearly identified and have the legal capacity to contract. Ussually they are companies or associations, natural persons or trustees of a Trust. Trustees must have the express power under the trust deed to enter into a lease.
Q: What is the maximum amount that could be lodged as a commercial bond?
A: Commercial bond can not exceed the amoount of the 28 days net rent (GST exclusive).
This opinion is of general informational value. You should not act or refrain from acting solely on the basis of this material. This general information does not constitute legal advice. Commercial Property Centre excludes all liablility to third parties arising directly or indirectly out of their reliance on this material.