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LEASES
DISCLOSURE STATEMENT
In the ACT it is a statutory requirement under section 30 of the Leases (Commercial and Rental) Act 2001 (ACT) ("the Leases Act"), that the lessor must give the lessee a document called a "Disclosure Statement" at least 14 days before the lessee enters the lease. Further, a lease (including any options) must be for a minimum of 5 years unless a solicitor’s certificate certifying that the tenant is aware of the provision is provided.
If the lease contains an option to renew, the lessor must give the lessee a Disclosure Statement in relation to that renewal when the renewal arises.
The Disclosure Statement is not a binding agreement or an offer to lease. It only provides a useful statutory summary of the lease, including the lessee's rent liabilities, permitted uses and access, the details of existing equipment and any furniture, fixtures and fittings on the premises. It also generally provides an estimate of the outgoings that the lessee is required to pay. These costs may vary during the term of the lease.
The lessor is also required to tell the lessee about the "Leases — Commercial and Retail Handbook" as soon as possible during negotiations or no later than the time of entering the lease. This handbook is available online at www.fairtrading.act.gov.au or from the Office of Fair Trading Shop Front. A lessee should obtain and read this handbook before signing any documents.
In NSW there is no requirement for a Disclosure Statement from the lessor.