Consumer Affairs and Fair Trading : Retail tenancy

Retail tenancy

The Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 commenced on 1 September 1998.

An online copy of the Code of Practice for Retail Tenancies is available.

Printed copies of the Regulations are available from the Print Applied Technology Bookshop at 123 Collins Street, Hobart.

Provisions of the Code

Application

The Code of Practice for Retail Tenancies applies to the operation of retail tenancy arrangements within Tasmania entered into from 1 September 1998. It applies to the negotiation of new retail lease agreements, as well as the performance and renewal of those agreements.

Leases entered into prior to 1 September 1998 which have not been varied since that date, including options to renew contained in those agreements, are known as 'Pre-Code' leases and are not covered by the new Code.

The provisions of the Code deal with requirements which apply to all retail premises with a floor space of 1,000 square metres or less and listed in Appendix C, and all small premises in shopping centres.

Back to top

Requirements Applicable to all Premises

The matters covered by this Part include :

. Unconscionable conduct	. Outgoings and operating expenses
. Clarity of documentation	. Report of outgoings
. Negotiation of leases	. Exercise of options
. Disclosure statements	. Market rent review
. Failure to give accurate statement	. Alterations of premises
. Lease costs	. Compensation
. Key money	. Demolition
. Lease terms	. Damaged premises
. Lease documentation	. Employment restriction
. Rent adjustments	. Refurbishment of premises
. Market value adjustments	. Assignments
. Negotiation of adjustment	. Termination and renewal of leases
. Turnover rent	. Security deposits
. Special rent	. Indemnities
. Commencement of rent	. Independent advice

Back to top

Premises in Shopping Centres

The provisions in this Part only apply to premises in shopping centres, and include:

. Costs of obtaining information	. Inadequate sales
. Advertising and promotion	. Tenants' association
. Relocation	. Trading hours

Back to top

Dispute Resolution

The Code details a staged process to resolve disputes arising from the agreement, as follows :

retail tenants and property owners attempt to resolve disputes by means of direct negotiation;
if unsuccessful, either party may request the Office of Consumer Affairs and Fair Trading to negotiate a solution;
either party may refer it to a court for hearing.

Back to top

Appendices

Appendix A - Valuation Principles for Market Value Rent

A valuer must take into account the principles set out under this Appendix when determining a market value rent for premises in accordance with Part 2 of the Code.

Back to top

Appendix B - Disclosure Statement Details

Part 2 of the Code requires that a property owner provide a tenant with a Disclosure Statement at least seven days prior to the tenant signing the lease or agreement to lease, paying the rent, or entering into occupation of the premises.

The Disclosure Statement must include information on the matters detailed in this Appendix, such as the amount of rent to be paid and its method of calculation, the commencement date for rental payments, and the identity and contact details for the property owner or manager, the process of negotiation of new retail lease agreements, as well as the performance and renewal of that agreement.

Back to top

Appendix C - Specified Businesses

Lists the businesses to be covered by the Code.

Back to top

A final report based on the consultation is available. This paper is also in pdf format. You will need a PDF viewer such as Adobe Reader to view PDF Documents. Please contact us if you have difficulty viewing or printing the document

Review of the Fair Trading (Code of Practice for Retail Tenancies) Regulation 1998

Final Report - March 2002