In Victoria, there are two sub-sets of commercial leases; retail leases and non-retail leases. Whilst in some circumstances it will be clear as to whether or not a commercial lease is a retail lease or a non-retail lease, this is not always the case.
Retail leases in Victoria are subject to the provisions of the Retail Leases Act 2003 (Vic) (the RLA).
The RLA provides certain rights and obligations for both landlords and tenants.
The RLA provides that a retail premises is a premises that is to be used for the sale or hire of goods by retail or the retail provision of services.
Please note that in order to qualify, the premises must be used wholly or predominantly for these purposes
The RLA is also quite clear on what is not a retail premises.
Examples of premises that are not retail premises include the following premises:
Please see here for a more exhaustive list.
Currently (at the date of writing), there are seven (7) ministerial directions in force where the Minister has decided the RLA does not apply. These are:
If you think that one of the above ministerial determinations may apply to your lease, you must ensure that you carefully read the terms of the relevant determination as certain exceptions apply.
Whilst this article outlines a snapshot of the law regarding what constitutes a retail lease in Victoria, there is also extensive case law on the issue, which could affect whether or not a commercial lease is truly a retail or non-retail lease.
Our property lawyers here at Rosendorff are certified experts with knowledge and experience in this subject matter. We will be more than happy to assist you in determining whether your lease is a retail or non-retail lease.
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