Ratchet Clauses & Leases – Queensland

John Kafrouni

15 Sep 2011

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min read

The Retail Shop Leases Act in Queensland has been amended to make a ratchet rent provision in a retail shop lease void for leases entered into after 4 April 2010.

A ratchet rent provision is defined as any provision of a retail shop lease to the extent that it—

a) prevents, or enables the lessor or another person to prevent, the rent decreasing under a rent review; or

b) limits or specifies, or allows the limitation or specification of, the amount by which the rent may decrease under a rent review; or

c) prevents, or allows the avoidance of, the rent review by the lessor or another person for a purpose mentioned in paragraph (a) or (b).

New section 134 of the Retail Shop Leases Act 1994 makes section 36A apply to a retail shop lease entered into after commencement, being the day of assent (4 April 2011) to the amending Bill.

Joe Kafrouni, Legal Practitioner Director, Kafrouni Lawyers

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The information provided by Kafrouni Lawyers is intended to provide general information and is not legal advice or a substitute for it. Business people should always consult their own legal advisors to discuss their particular circumstances. Kafrouni Lawyers makes no warranties or representations regarding the information and exclude any liability which may arise as a result of the use of this information. This information is the copyright of Kafrouni Lawyers.

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