By clicking “Accept”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policyfor more information.
We create a bespoke document based on
your instructions.
A$
1,650
Lawyer-Assisted ✅
Create the document yourself with 30 mins help from a lawyer.
Create the legal document yourself with 30 minutes help from a lawyer.
A$
1,650
Lawyer-Assisted ✅
Create the document yourself with 30 mins help from a lawyer.
Create the legal document yourself with 30 minutes help from a lawyer.
A$
1,650
Lawyer-Assisted ✅
Lawyer Assisted is not yet available for this document.
Create the legal document yourself with 30 minutes help from a lawyer.
Self-Service 🏗
Most Popular
Create the document instantly yourself by entering the key details.
A$
1,100
Self-Service 🏗
Most Popular
Create the document instantly yourself by entering the key details.
A$
1,100
Self-Service 🏗
Self Service is not yet available for this document.
1,100
Please turn your device to landscape mode to begin creating your document.
Please turn your device to landscape mode to begin creating your document.
Please turn your device to landscape mode to begin creating your document.
Please turn your device to landscape mode to begin creating your document.
I highly recommend James if you require legal advice, especially when time is of the essence. I needed help with a complex matter relating to property purchase, and within an hour of contacting James, I was able to meet him and discuss the issues and have him explain my options with clear references to the applicable law …
"James and the team at Blue Ocean have advised us on a number of matters relating to retail leasing and commercial property purchase over the past 12 months. We’ve found his advice extremely valuable throughout, and he has helped us avoid what could have been significant/expensive issues in the future by providing his input and expertise. He’s always quick to respond to any questions or queries and overall the fees are very reasonable. We will continue to use Blue Ocean in the future and can highly recommend to others."
"I have worked with Blue Ocean for a while now and are very happy with them. Their charges are reasonable, their attitude is fair and their communication is always first class. I work with James frequently here and have been very happy with his work. Recommended."
The Retail Tenancy Guide is published by the NSW Small Business Commissioner.
It provides information about Retail Leases entered into after 1 July 2017 in accordance with the Retail Leases Act 1994 (NSW) (the Act).
We recommend a copy of the guide be provided to the Lessee (Tenant) as soon as, if not before, lease negotiations start, together with a copy of the proposed Retail Lease.
The Guide provides information about:
⚖️ Starting a lease;
⚖️ Leasing costs;
⚖️ Lease management; and
⚖️ Lease expiry.
The guide can also be used as a reference at any point during the term of a Retail Lease.
You are encouraged to visit the NSW Small Business Commissioner's website smallbusiness.nsw.gov.au or to contact their office on 1300 795 534 for further information.
In the event of any disputes during the Lease, the Commission also has a cost-effective mediation service.
As outlined in the Retail Leases Act 1994 (NSW), lessors (landlords) and lessees (tenants) must sign disclosure statements that are in, or to the effect of, Schedule 2 of the Act.
There are two parts to the Disclosure Statement – one that the lessor signs (Part A, known as the Lessor’s Disclosure Statement) and one that the lessee signs (Part B, known as the Lessee’s Disclosure Statement).
⚖️ Click to download a copy of the Retail Lease Lessor + Lessee's Disclosure Statement.
The Disclosure Statement must be signed by both parties before entering into the Lease.
The Lessor must sign Part A at least seven days before the commencement of a new Lease or renew a Lease.
The Lessee must sign Part B within seven days after receiving the signed Part A from the Lessor.
For information about the 2021 edition please click here.
Different laws cover Retail, Commercial and Residential Leases.
It is your own legal responsibility to understand your rights and obligations regarding these laws.
Please contact our Legal Team to discuss your individual circumstances.
The NSW Registrar General recently declared that from 11 October 2021 all remaining dealings must be lodged electronically.
This includes Commercial + Retail Leases, which must be lodged electronically by the Landlord or the Landlord's legal representative.
✅ Do you prepare leases for your clients? Get ready for 11 October 2021
✅ NSW LRS: Electronic Leases: Frequently Asked Questions for Lodgment
✅ Registrar General’s Guidelines-Lease
✅ PEXA: Lease/Sublease (NSW) | Help Centre
Social Sharing Image: Courtesy of Mike Petrucci on Unsplash
Enter the code WHen you pay full price to Purchase one of the following Self Service documents:
Re-Enter the code at checkout each time you buy the following documents to get a discount:
A lease is quite often a significant obligation on the part of businesses. It is both a financial commitment, and a time commitment.
Traditionally, the majority of the time, a business would look for security of tenure, and a landlord for a long-term tenant.
The lease was an appropriate arrangement suiting the needs of both parties equally.
However, an insistence on occupancy by way of a lease on the part of landlord prevents businesses from engaging in more experimental ventures.
With smaller or newer businesses particularly, risks cannot be taken with their business model when they have rent to pay for the coming fortnight; and so rental obligations may push them into a certain conservatism with their business, a reluctance to try different things and be different, for fear of insolvency.
Such risks are often mitigated with a Licence to Occupy affords an occupant many of the same rights as a lessee or tenant under a Lease, though usually for the short-term.
There are other legal distinctions between a lease and a licence, a summary of which can be found below, though the primary difference of interest in a commercial sense is the greater scope of risk-taking a business may undertake with a licence to occupy.
For a more detailed discussion of the commercial and legal differences between these two types of property law agreements please refer to our blog article “Licences to Occupy - A viable Alternative to Leases?" by Suk Jae Chung | Virtual Intern at Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
Before you brainstorm the bricks n' mortar portion of your business plan, we strongly recommend you read + consider this FAQ to learn how adopting a more nimble business model which includes the use of a short-term Licence to Occupy (might be used to provide your business with a strategic advantage).
Other business benefits could also accrue, such as the opportunity to combine multiple + adaptive physical store presence with online eCommerce sales.
If an agreement does not meet the definition of a "Lease" under AASB 16 Leases, then it is not accounted for on-balance sheet.
The following observations have been extracted (emphasis added) from the PWC report entitled: Why the new standard matters to the Retail and consumer industry
The retail industry is likely to be one of the most affected by the new standard, given the significant use of rented premises for their stores. The PwC Global Lease Capitalisation study indicated that there would be a median debt increase of 98% for retailers, and 41% median increase in EBITDA.
Most of such leases are in the form of medium term leases (generally 3-5/9 years),whether in premium locations (flagship stores), shopping centres or ordinary outlets …
Historically such leases have been considered as operating leases, and have not therefore had any impact on the balance sheet.
The amount recorded in the income statement was typically on a straight line basis and entirely included in operating expenses. The new lease standard will not only have an impact on the balance sheet, but also on the operating costs, with a split of the expense between operating and finance costs.
The exemption for short-term leases and small assets is unlikely to provide any significant relief to retailers.
Under AASB 16, a "Lease" is defined as an agreement, or part of an agreement, that conveys the right to control the use of an identified asset.
The definition does not refer to an agreement labelled as a Lease.
Agreements not labelled as a Lease may meet the definition of a lease under AASB 16; conversely, an agreement labelled as a Lease may not meet the accounting definition of a Lease.
In assessing whether an arrangement is, or contains, a Lease, 3 key assessments need to be made.
These are presented diagrammatically below …
In the majority of cases, the use of a Licence to Occupy (typically being a short-term arrangement) will qualify for the short-term lease exemption, meaning that it represents an alternative method to circumvent the application of AASB 16 which means that such arrangements can potentially (subject to confirmation from your accountant!) remain off-balance sheet.
The use of a Licence to Occupy is therefore an increasingly important proactive strategic legal tool to consider when your business plans for the control or use of any property.
The following summary (in technical speak) has been extracted (emphasis added) from the KPMG article AASB 16 Check: Short-term and low value exemptions
The low value and short-term lease exemptions are available to lessees (tenants) only.
*A short-term lease is a lease that, at the commencement date, has a lease term of 12 months or less.
A lease that contains a purchase option is not a short-term lease.
The election for short-term leases shall be made by class of underlying asset to which the right of use relates [AASB 16: 8].
***The following lease expenses are not required to be disclosed:
Expenses relating to leases with a term of one month or less; and
Expenses relating to leases which are both low-value and short-term [AASB 16:53(c-d)].
I stumbled upon the following quote in conducting research for this FAQ and thought it worthy of further dissemination.
Extracted (emphasis added) from the article by David H. from the Queensland Audit Office: Do you have any ‘lease agreements’ that are not leases, or any hidden leases?
When discussing leases, it is useful to refer to the quote by Sir David Tweedie, the then Chairman of the International Accounting Standards Board (IASB) on April 25, 2008 when he said:
"One of my great ambitions before I die is to fly in an aircraft that is on an airline’s balance sheet."
Credits:
This FAQ was written by James D. Ford GAICD | Principal Solicitor, Blue Ocean Law Group℠.
Important Notice:
This FAQ is intended for general interest + information only.
It is not legal advice, nor should it be relied upon or used as such.
We recommend you always consult a lawyer for legal advice specifically tailored to your needs & circumstances.
Subscribe for FREE access to our growing list of [350+] personal and/or business legal documents.
View Pricing
Close
