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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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| All tenants are now protected by 5 year lease guarantees. From 1 May 2003 the initial term of the lease plus any further term or terms provided by any options for renewal must be at least 5 years. However, subsequent renewals do not have a mandatory minimum period. The 5 year term for a lease plus option periods is mandatory unless the tenant gets a Victorian Small Business Commissioner certificate waiving the right to a 5 year term (see below). |
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| In order for the certificate to be issued the tenant must obtain the form and information sheet which can be downloaded here. You can also request a copy from the VSBC. This form should be lodged with the VSBC outlining why the tenant would like to waive his/her right to a 5 year lease period. On receipt of the form, the function of the Commissioner is to explain to the tenant the effect of the waiver. Once the Commissioner is satisfied that the tenant fully appreciates the effect of the waiver, a certificate will be issued. |
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Click here for answers to questions about security deposits.
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Click here for answers to questions about security deposits.
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| The best way to notify the VSBC of your lease details is through the website. If you click on the "Notify a Lease" link on the left hand side of the page you will be taken through an easy to follow form and fact sheet that can be filled in online. When you have completed the form, submit it, and your lease details will be automatically registered and can be printed out from the site. When the lease has been signed by both parties, the form should be submitted to the VSBC within 14 days. Failure to do so may attract a penalty of 100 penalty units ($1000). |
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| Under no circumstances are the lease details available to the public |
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| Consistent with State Government policy, the VSBC endorses fair information handling practices. For the purposes of S 25 of the Retail Leases Act 2003, the Office does not collect or record personal information, except that which you provide for this purpose. In accordance with Section 84(1)(g) of the Retail Leases Act 2003, this information may only be used for the purposes of the Commissioner performing his or her function under the Act. |
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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Section 50 of the Retail Leases Act 2003 provides that the landlord must absorb the cost of land tax and voids the tenant’s liability to pay land tax. Note that this differs to the previous Acts under which landlords were able to pass on landlords to tenants.
If you require further information or advice on the subject of land tax please contact 13 22 15 or toll free 1800 136 034 where you will be able to speak to an experienced information consultant on this matter. |
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Part 9 of the Act introduces a new part dealing with unconscionable conduct. Landlords and tenants under a retail lease must not, in connection with the lease, engage in conduct that, is in all circumstances unconscionable. Under section 77, unconscionable conduct provisions of the Retail Leases Act 2003 can protect tenants against grossly unfair conduct by landlords such as unwillingness to negotiate and use of unfair tactics. One of the factors to be considered in whether a landlord has acted unconscionably is if a landlord has unreasonably used turnover information in rent negotiation. The Act also improves provisions relating to protection for tenants against relocation, demolition and damaged premises. Section 78 of the Act relates to unconscionable conduct of the tenant towards the landlord.
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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| Orders of VCAT can be lodged at the Magistrates’ Court (free of charge) and become orders of the court. As such, they can be enforced by the Sheriff of the Supreme Court. |
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| The business operator may be the tenant of the landlord and therefore has security in the premises. But some franchisees only have a licence from the franchisor to be in the premises and operate the business. In these circumstance the franchisee only has the security offered through their franchise agreement. |
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It is important that you get legal advice before signing a lease, as a lease deals with many matters. For example, the term of the lease and any options to review, rent and the basis for rent reviews, outgoings or shared operating expenses, any obligations for repairs or maintenance, details regarding the disclosure statement, permitted uses for the lease and assignment.
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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A disclosure statement should be provided at lease 7 days before a retail premises lease is entered into. Section 17 of the Act details what the tenant’s rights are if this does not occur.
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This answer to this question is currently being updated. Please contact the Victorian Small Business Commissioner on 13 2215 or toll free 1800 136 034 for specific queries.
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In this case, the lease must state when the reviews are to take place, and the basis or formula on which the reviews are to be made (the lease is void if it does not state how the review is to be made. The basis or formula for the rent review must be made using one of the following methods –
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a fixed percentage;
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an independently published index of prices or wages
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a fixed annual amount
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the current market rent of the retail premises
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a basis or formula prescribed |
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