Commercial Tenancy (Retail Shops) Agreement Act 1985 (Wa)

Consumer protection administers the Commercial Tenancy (Retail Shops) Agreements Act 1985, which regulates retail leases. The law focuses mainly on the need for transparency of information and fairness in the treaty. The VA government has introduced the Commercial Tenancies (COVID-19 Response) Act 2020 and its rules contain a new code of conduct to help commercial tenants and landlords enter into rental agreements during the COVID-19 coronavirus pandemic. For more information, see Commercial Contracts – Covid-19 Response Which companies does this law apply to? The law focuses on retail trade; However, rental contracts for certain non-businesses, such as.B. shopping mall businesses and other specific businesses, are also covered by the law. The law generally applies to contracts for the rental of premises with an area of 1000 m2 or less and is used for the exercise of a commercial activity and is located in a retail shopping centre (a group of premises of which 5 or more are used for the sale of goods by the retail trade or by a given enterprise); not in a retail shopping centre, but which are used (or used primarily) for the sale of goods by the retail trade; or used to perform a “specific activity”. The rules define what is considered a “specified establishment” on January 1, 2013, i.e., dry cleaning; hairdresser; cosmetic surgery and treatments; Shoe repair (which may include key cuts and engravings); and the sale or rental of videotapes, DVDs, electronic games and other similar entertainment. The law provides that certain retail businesses with an area of more than 1000 m2 can be taxed, which are also covered by the law. In principle, the law does not apply to leases of listed companies. What is the Commercial Tenancies Act? The purpose of the Act is: to regulate commercial leases with respect to retail leases; to enable the resolution of disputes and the resolution of issues arising from a lease agreement through access to other mediation and dispute resolution mechanisms at a lower cost, offered by the Small Business Commissioner and the State Administrative Tribunal; and prohibit unscrupulous, misleading and deceptive conduct with respect to retail businesses. The law focuses mainly on the need for transparency of information and fairness in the contract, by obliging the lessor to provide the tenant with a disclosure statement and a rental guide; establish a consistent and fair rent verification process; including special requirements for the payment of turnover or rent as a percentage; give most tenants the right to a minimum rental period of up to 5 years; regulating the allocation of indicated rental costs (operating costs) among tenants; cancel certain provisions of a rental agreement – for example.

B a provision requiring the tenant to open at certain times obliging landlords to notify tenants of the date on which an option to renew a lease can no longer be exercised; and prohibit landlords from passing on part of their legal fees to tenants. Negotiation time The law prevents rental agreements from including a clause requiring the shop to be open for certain hours or periods. If a retail business does not open outside normal business hours, the tenant is not required to contribute to the operating costs incurred by the lessor by opening the shopping centre during those hours. The fact sheet on the allocation of operating costs for non-standard trading hours contains more details. Seek professional advice Tenants should obtain independent legal and business advice before entering into a rental agreement. In some cases, a tenant might consider registering a lease or making a reserve to protect their interests, especially if the lease is valid for a period longer than five years. . .

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