Commercial leases are primarily governed by The Lease, The Property Law Act and The Transfer of Land Act. The Retail Leases Act 2003 governs most Retail Premises Leases. Retail Premises primarily include premises which are used wholly or predominantly for the sale or hire of goods by retail or the retail provision of services. However premises where occupancy costs exceed $1 million or where the tenant is a listed corporation or the premises are prescribed are not included. The minister has made the following determination regarding retail premises defining those premises that are NOT retail premises:

“Premises that are located entirely within a building which, under the terms of the lease relating to the premises, or part of the premises, are used, or are to be used, wholly or predominantly for the retail provision of services, other than premises located entirely on any one or more of the first three storeys in a building, excluding any basement levels.”

Accordingly, an accountancy firm which only occupies the 5th level of an office building will not be covered by the Retail Leases Act.

See the attached OSBC Revised Guidelines on Retail Premises. http://www.sbc.vic.gov.au/downloads/retail%20premises%20guidelines%20_revised.pdf 

The most common lease disputes relate to:

- Non Payment of rent and outgoings,
- Repairs and maintenance and loss suffered as a result of
- damaged premises
- Interpretation of Outgoings
- Rent reviews
- Exercise of lease options
- Assignments of leases
- Conduct of shopping Centres
- Disclosure Statements and misrepresentation.
- Notices of Default and Termination of Leases
- Make good at the end of a lease.

However underlying these symptoms are business and financial drivers. Mediation is good at uncovering these underlying causes so that positive solutions can be developed. For Retail Lease Premises all disputes except for the recovery of rent and claims for injunctive relief must first go through a mediation conducted through the Office of the Small Business Commissioner (OSBC). See the link to the OSBC http://www.sbc.vic.gov.au/ Attached is a Dispute Application Referral Form Mediation at the OSBC has a very high rate of success.

The advantages of mediating Retail Premises Leases are:
- It is quick – usually a mediation can be organized within
- weeks or a few months
- It is cheap – Each party only has to pay $195.
- Legal representation is not necessary (However it is wise to
- seek some legal guidance or advice and legal representation
- in more complicated matters.)
- It is business oriented and helps improve business
- relationships.

The Law Institute of Victoria through its Property Law Dispute Resolution Committee offers a cheap Dispute Resolution alternative for minor Property Law matters. It applies where lawyers representing the parties send in writing to the Law Institute an agreed statement of facts with questions to be answered. Written advice is received. Neither the parties or their lawyers attend in person.

Michael has mediated 100s of Retail Lease disputes as a member of the Office of the Small Business Commissioner’s Mediation panel. (Also see the comments made in the above categories.)

Where to now?

Speak to a mediation expert

Often the best way to get the answers you need is to speak to an expert. Click here to contact one of our mediation experts via our contact forms or please call us on +61 3 9642 4552.

Organise an initial consultation

A face-to-face consultation gives you the opportunity to discuss your mediation issue with professionals who deal with and resolve these issues on a daily basis.

It gives you a chance to ask any questions you may have and for a member of our team to gain background and provide you an insight into the issues that you are facing.

For more information please call us on +61 3 9642 4552 or send us an e-mail at info@tiernanmedation.com.au. We are here to help you resolve your problems. Car Accident Lawyers