Retail Shop Leases Act 1994

This section applies if a retail shop lease provides for an option on the lessee’s part to renew or extend the lease at the current market rent of the leased shop.

However, this section does not apply if—

the lessee is a major lessee; and

before the lessee enters into the lease, the lessee gives the lessor a written notice stating that the lessee agrees that this subdivision does not apply in relation to the lease; and

the lease provides for the timing and basis for each review of the lease.

Unless the current market rent has already been agreed between the lessor and lessee, the lessee may, by written notice given to the lessor in the early determination period, ask for the current market rent to be determined.

Sections 28(2) and (3) and 28A to 35 apply to the determination.

The current market rent must be determined as at the date the request is made under subsection (2).

The rent payable under the renewal or extension is the current market rent determined under this section.

Despite any other provision of this Act or the lease, the last day on which the option mentioned in subsection (1) may be exercised is the day that is 21 days after the lessee receives written notice of the current market rent determined under this section.

In this section—

for a lease of not more than 1 year, the period—

starting 3 months before the option expiry day; and

ending 1 month before the option expiry day; or

for a lease of more than 1 year, the period—

starting 6 months before the option expiry day; and

ending 3 months before the option expiry day.