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Can You Charge Lease Preparation Costs on a Retail Lease?

You are generally prohibited from charging lease preparation costs in relation to a lease that falls within the scope of the Retail Leases Act 1994 (NSW).  However, the general prohibition does not relate to a reasonable sum in connection with the making of amendments to a proposed lease requested by a Lessee, provided that:

  1. the amendment is not an amendment to the details of the Lessee, the rent or the term of the lease;
  2. an amendment to the lease that had been previously agreed between the parties; or
  3. an amendment requested before the lessor is given a Lessee Disclosure Statement under Section 11A of the Act.

In order to preserve an entitlement to charge a reasonable sum in respect of lease amendments requested by a lessee, it is important that the lessee be required to provide the Lessee Disclosure Statement under Section 11A prior to any amendments being considered. 

Liability limited by a scheme approved under Professional Standards Legislation

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