When should a lease be registered at Landgate?
In Western Australia the Transfer of Land Act (TLA) governs the registration of titles to land and dealings on those titles. The TLA provides for the registration of a lease for any term (excluding options to renew) exceeding 3 years for freehold land or exceeding 12 months for Crown land.
The written consent of any mortgagee in priority to the lease is required.
What is a retail shop lease?
In Western Australia the Commercial Tenancy (Retail Shops) Agreement Act 1985 governs retail shop leases.
The Act covers parties involved in retail/commercial leases for shop premises of 1000 square metres or less in area and are:
- used for carrying on a business and are in a retail shopping centre (5 or more retail shops or specified businesses);
- not in a retail shopping centre, but which are used for the sale of goods by retail; or
- used for conducting a specified business; for example dry cleaning, hairdressing, beauty therapy, shoe repair, video store or some petrol stations.
The Act's primary objective is to create greater equality of bargaining power between parties entering into retail shop leases. It does so by creating rights and obligations, mostly in favour of the tenant, including:
- requiring the landlord to give the tenant a comprehensive disclosure statement prior to the start of the lease;
- establishing a consistent process for rent reviews;
- giving tenants a minimum term of 5 years;
- regulating the way in which the landlord can charge certain expenses to the tenant; and
giving access to the State Administrative Tribunal's mediation and dispute resolution mechanisms.