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Retail tenancy

The Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 commenced on 1 September 1998.


An online copy of the Code of Practice for Retail Tenancies is available.


Printed copies of the Regulations are available from the Print Applied Technology Bookshop at 123 Collins Street, Hobart.


Provisions of the Code 

Application


The Code of Practice for Retail Tenancies applies to the operation of retail tenancy arrangements within Tasmania entered into from 1 September 1998. It applies to the negotiation of new retail lease agreements, as well as the performance and renewal of those agreements.


Leases entered into prior to 1 September 1998 which have not been varied since that date, including options to renew contained in those agreements, are known as 'Pre-Code' leases and are not covered by the Code.

The provisions of the Code deal with requirements which apply to all retail premises with a floor space of 1,000 square metres or less and listed in Appendix C, and all small premises in shopping centres.


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Requirements Applicable to all Premises

The matters covered by this Part include :

 

.  Unconscionable conduct

.  Outgoings and operating expenses

.  Clarity of documentation

.  Report of outgoings

.  Negotiation of leases

.  Exercise of options

.  Disclosure statements

.  Market rent review

.  Failure to give accurate statement

.  Alterations of premises

.  Lease costs

.  Compensation

.  Key money

.  Demolition

.  Lease terms

.  Damaged premises

.  Lease documentation

.  Employment restriction

.  Rent adjustments

.  Refurbishment of premises

.  Market value adjustments

.  Assignments

.  Negotiation of adjustment

.  Termination and renewal of leases

.  Turnover rent

.  Security deposits

.  Special rent

.  Indemnities

.  Commencement of rent

.  Independent advice

 
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Premises in Shopping Centres


The provisions in this Part only apply to premises in shopping centres, and include:

.  Costs of obtaining information

.  Inadequate sales

.  Advertising and promotion

.  Tenants' association

.  Relocation

.  Trading hours

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Dispute Resolution


The Code details a staged process to resolve disputes arising from the agreement, as follows :

  • retail tenants and property owners attempt to resolve disputes by means of direct negotiation;
  • if unsuccessful, either party may request the Office of Consumer Affairs and Fair Trading to negotiate a solution;
  • either party may refer it to a court for hearing.

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Appendices  (Note:  the following appendices are at the bottom of Part 5 - Monitoring Committee of the Regulations)

Appendix A - Valuation Principles for Market Value Rent

A valuer must take into account the principles set out under this Appendix when determining a market value rent for premises in accordance with Part 2 of the Code.


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Appendix B - Disclosure Statement Details


Part 2 of the Code requires that a property owner provide a tenant with a Disclosure Statement at least seven days prior to the tenant signing the lease or agreement to lease, paying the rent, or entering into occupation of the premises.


The Disclosure Statement must include information on the matters detailed in this Appendix, such as the amount of rent to be paid and its method of calculation, the commencement date for rental payments, and the identity and contact details for the property owner or manager, the process of negotiation of new retail lease agreements, as well as the performance and renewal of that agreement.


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Appendix C - Specified Businesses


Lists the businesses to be covered by the Code.

 

Reinstatement of the Fair Trading (Code of Practice for Retail Tenancies) Regulations

The Regulation is still called the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998, however these regulations are now pursuant to section 49 of the Australian Consumer Law (Tasmania) Act 2010.


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