ACT Leasing 101 – Disclosure Statements and Section 30 Certificates
So, you are a tenant and think you have found the perfect retail or commercial property, or you are a landlord and think you have found the perfect tenant. Both parties have successfully negotiated commercial terms, and it is time to formalise the arrangement.
What is a Disclosure Statement?
In the ACT, a Disclosure Statement is a prescribed form under the Leases (Commercial and Retail) Act 2001. The aim of the Disclosure Statement is to provide tenants with a snapshot view of their financial obligations and position concerning common leasing issues including:
- rent payable;
- rent reviews and their frequency;
- outgoings payable;
- any other costs associated with the lease;
- the security required to be provided by the tenant, such as a bond and personal guarantees;
- tenancy mix (if the property is in a shopping centre); and
- other important key provisions.
So, what is this certificate about?
It is recognised though that sometimes tenants will want to sign the documents before the end of that 14-day period. To this end, where the tenant has obtained legal advice confirming their right to take 14 days before signing, a tenant may agree to waive these time limits. This is done by the tenant’s lawyer signing what is called a ‘Section 30 Certificate’, in which the lawyer confirms that the tenant is aware of the time limits and has chosen to waive or vary them as set out in the certificate. Signing this certificate means the Lease can be entered into more quickly.
If you have further questions or are uncertain about any aspect of your lease, please contact us, we are here to help.