What is the Disclosure Statement and when must I receive it?

The Disclosure Statement is a document that the landlord (lessor) must provide to a tenant before they enter into a retail shop lease.

Under section 21 of the Retail Shop Leases Act 1994 (Qld), this statement must be given at least 7 days before the lease is entered into. The logic of this ‘7-day rule’ is to ensure that the tenant has sufficient time to obtain legal and financial advice before committing.

What is in a Disclosure Statement?

A compliant Disclosure Statement must contain detailed information: including:

• The initial base rent and how it will be reviewed
• A detailed estimate of outgoings (council rates, water, insurance, Common Area Maintenance)
• Any fitout works required and who pays for them
• The make good obligations at the end of the lease
• Any demolition or relocation clauses
• Trading hours (if in a shopping centre)
• Any guarantees or security deposits required

What Happens if Disclosures Are False?

If the lessor fails to provide a compliant Disclosure Statement at least 7 days before execution, or if it contains materially false or misleading information, the tenant has a right under section 22 of the Act to terminate the lease within a 7-day cooling-off period after signing.

For more information, see our Full Retail Leasing Guide .

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