FM8011 Form 1 - Disclosure statement

Form 1 - Disclosure statement

under section 12 of Retail and Commercial Leases Act 1995
Information for lessees

Please read the following information carefully.
What is a lease?

A lease is a very important document. It is a legally binding contract between the lessor (landlord) and the lessee (tenant). It sets out the rights and obligations of the lessor and the lessee.

A document that binds the lessee to enter into a lease or to take a shop on lease for a renewed term should be treated as if it were the lease.
What should I look for in a lease?

The main features to consider are -
- the term of the lease;
- whether there is an option to renew or extend the lease (and the method of exercising any such option);
- the rent and the basis for rent reviews;
- the amounts that the lessee will have to pay in addition to rent e.g. fit out costs, maintenance and repair costs and shared
  operating expenses;
- the consequences of breaching a term of the lease.
Make sure you read the whole document and understand the obligations it will place on you, especially the extra charges in addition to rent that you will have to pay.
If the lease is a sublease, you should seek information about the lessor's rights and obligations under the head lease that are relevant to the lease of the shop.
What information is the lessor required to give me?

The lessor must give you a copy of the proposed lease and this disclosure statement. The disclosure statement must contain the matters set out in section 12 of the Retail and Commercial Leases Act 1995.
What should I do before signing a lease or other binding document?

Do not sign until you understand exactly what your obligations under the lease will be.

Before signing a lease or other binding document, you should obtain independent legal and financial advice.
- You should discuss the lease (or any agreement for a lease) and the disclosure statement with your own lawyer or leasing adviser.
- You should seek advice about the financial commitments under the lease from your own accountant or recognised financial or business adviser.
- You should also seek advice from an association representing the interests of lessees.
Before signing a lease or other binding document, oral representations made by the lessor or the lessor's agent on which you have relied should be reduced to writing and signed by or on behalf of the lessor.

Before signing a lease or other binding document, the lessee should sign an acknowledgment of receipt of the disclosure statement.
1 - Details Of Shop
Address

Street 1

Street 2

SuburbState

Postcode
[Provide sufficient details to identify the shop]
Lettable area
Specify in square metres
The shop may only be used for

[Specify the permitted uses]0/388
2 - Term Of Lease
Term of Lease

0/390
3 - Renewal Or Extension Of Lease
Renewal or extension of lease

There is no right to renew or extend the term of the leaseThe lease gives a right to renew or extend the term of the lease as follows
[Insert Details]

0/390
4-Access To Shop
Hours during which the lessee will have access to the shop outside trading hours

0/392
Date on which the shop will be available for occupation

DayMonthYear
5 - Monetary Obligations
The lessee's obligations to pay rent, to pay or reimburse outgoings, to make or reimburse capital expenditure and any other monetary obligations imposed on the lessee are set out in Appendix A.
6 - Retail Shopping Centre Details
Retail shopping centre details [Tick 1 box]

The shop is in a retail shopping centre within the meaning of the Retail and Commercial Leases Act1995.The shop is not in a retail shopping centre within the meaning of the Retail and Commercial Leases Act1995.
See Appendix B for details
7 - Consequences Of Breach
The legal consequences of early termination of the lease by the lessee as set out in
insert clause numbers or other identification of relevant components of lease
of the lease are as follows

[Insert brief description]0/259
The legal consequences of other breaches as set out in
insert clause numbers or other identification of relevant components of lease
of the lease are as follows

[Insert brief description]0/259
8 - Warnings
Oral representations made by the lessor or the lessor's agent on which the lessee has relied should be reduced to writing and signed byor on behalf of the lessor before the lessee enters into the lease.

The lessee should obtain independent legal and financial advice before entering into the lease.
Address

Street 1

Street 2

SuburbState

Postcode
Acknowledgment Of Receipt
I acknowledge receipt of this disclosure statement including

[Tick 1 or more boxes as applicable.]
Appendix A - Monetary obligations under leaseAppendix B - Retail shopping centre detailsAttachment - Shop fitting or refitting obligationsAttachment - Fixtures, plant or equipment obligationsAttachment - Sinking fund obligationsAttachment - Proposed changes to shopping centreAttachment - Current tenant mixAttachment - Proposed changes to current tenant mixAttachment - Details of tenant association
Address

Street 1

Street 2

SuburbState

Postcode
Appendix A - Monetary obligations under lease
Part 1 - Rent
1 - Base Rent
The base rent payable for the shop is or is calculated as follows
[Insert amount or formula]
2 - Basis On Which Base Rent May Be Changed
The base rent may be changed on the following basis

[Insert description of rent review arrangements]0/390
3 - Other Rent
Other rent payable for the shop is or is calculated as follows
[Insert amount or formula]
Part 2 - Capital Expenditure
4 - Permissible Obligations (Section 13 of Retail and Commercial Leases Act 1995)
The lessee will be liable for capital expenditure as follows:

[Tick 1 or more boxes as applicable.]
to pay or reimburse the cost of making good damage to the premises arising when the lessee is in possession or entitled to possession of the premisesto fit or refit the shop as set out in the attachment marked "Shop fitting or refitting obligations"
[The attachment must include sufficient details to enable the lessee to obtain an estimate of the likely cost of complying with the obligation.]
to provide fixtures, plant or equipment as set out in the attachment marked "Fixtures, plant or equipment obligations"
[The attachment must include sufficient details to enable the lessee to obtain an estimate of the likely cost of complying with the obligation.]
to contribute to a sinking fund to cover major items of repair or maintenance as set out in the attachment marked "Sinking fund obligations"
[The attachment must include reasonable details of the lessee's obligations.]
Part 3 - Outgoings
5 - Categories and estimate of annual liability
The lessee will be liable to pay or reimburse outgoings as follows
Local government rates and charges
amount($)
Electricity
amount($)
Gas and oil
amount($)
Water and sewerage rates and charges
amount($)
Sewerage disposal and sullage
amount($)
Energy management systems
amount($)
Air conditioning/ventilation
amount($)
Building intelligence and emergency systems
amount($)
Fire protection
amount($)
Security
amount($)
Lifts and escalators
amount($)
Public address/music
amount($)
Signs
amount($)
Public telephones
amount($)
Insurance
amount($)
Pest control
amount($)
Uniforms
amount($)
Car parking
amount($)
Child minding
amount($)
Gardening
amount($)
Cleaning
amount($)
Audit fees
amount($)
Management costs
amount($)
Maintenance and repairs
amount($)
Emergency services levy
amount($)
Other
[Specify]
Amount
Total
amount($)
[Tick 1 box]

The lessee is liable for the full amount of the outgoings.The lessee is liable for a proportion of the outgoings calculated according to the following formula
[If different according to category, provide category and formula in each case]

0/524
6 - Margin Of Profit
[Tick 1 box]

The amount the lessee is required to pay towards outgoings does not include a margin of profit for the lessorThe amount the lessee is required to pay towards outgoings includes a margin of profit for the lessor as follows
[Provide the percentage profit or the basis on which the profit is to be calculated]

0/260
Part 4 - Other monetary obligations
7 - Other
[Tick 1 box]

The lessee will not be liable for any other kinds of monetary obligationsThe lessee will also be liable for the following kinds of monetary obligations
[Provide details of other kinds of monetary obligations and, if possible, an estimate of the annual cost of complying with those obligations.]

0/791
Appendix B - Retail Shopping Centre Details
1 - Shopping Centre Details
Name of shopping centre
Address of shopping centre

Street 1

Street 2

SuburbState

Postcode
2 - Number Of Shops And Lettable Area
Total number of shops in shopping centre
Total lettable area of shops in shopping centre
3 - Parking Facilities At Shopping Centre
Number of parking bays for customers of shop
Number of parking bays for lessee and lessee's employees
4 - Facilities And Services Provided By Less
The lessor provides the following facilities and services

[Describe nature of facilities and services]0/1056
5 - Proposed changes to shopping centre
[Tick 1 box]

No changes to the shopping centre are proposedIt is proposed to make changes to the shopping centre as follows
[Describe the nature of the changes including any changes to the buildings, parking and surrounding roads and, if a development application is to be lodged, details of when and with whom it is to be lodged. Attach details (in attachment marked "Proposed changes to shopping centre") or include details of where to obtain further information.]
0/1320
6 - Core Trading Hours
Core trading hours

0/391
7 - Current Tenant Mix And Any Proposed Changes
The current tenant mix is shown on the attachment marked "Current tenant mix" comprised of a floor plan showing tenancies and
common areas.
[Tick 1 box]

No changes to the current tenant mix are proposedIt is proposed to change the current tenant mix as follows
[Describe changes or show on attachment marked "Proposed changes to current tenant mix"]

0/790
The lease may contain provisions governing the process for changes to the tenant mix
8 - Introduction Of Competitor
[Tick 1 box]

The lessee is assured that the current tenant mix will not be altered to the lessee's disadvantage by the introduction of a competitorThe lessor is not prepared to give the lessee an assurance that the current tenant mix will not be altered to the lessee'sdisadvantage by the introduction of a competitor
9 - Tenant Association
[Tick 1 box]

There is no tenant association for the centreThe attachment marked "Details of tenant association" gives details of the nature of the tenant association for the centre, the voting rights of members and the contributions payable by members
10 - Advertisement etc of shopping centre
[Tick 1 box]

Contributions are not required towards the costs of advertising and promoting the shopping centreThe following is an estimate of the annual contributions that are or may be required towards the costs of advertising and promoting the shopping centre
[Insert estimate]

0/790
uniqueSubmissionReference
Should be Empty:

Form 1 - Disclosure statement

1 - Details Of Shop

2 - Term Of Lease

3 - Renewal Or Extension Of Lease

4-Access To Shop

5 - Monetary Obligations

6 - Retail Shopping Centre Details

7 - Consequences Of Breach

8 - Warnings

Acknowledgment Of Receipt

Appendix A - Monetary obligations under lease

Part 1 - Rent

1 - Base Rent

2 - Basis On Which Base Rent May Be Changed

3 - Other Rent

Part 2 - Capital Expenditure

4 - Permissible Obligations (Section 13 of Retail and Commercial Leases Act 1995)

Part 3 - Outgoings

5 - Categories and estimate of annual liability

6 - Margin Of Profit

Part 4 - Other monetary obligations

7 - Other

Appendix B - Retail Shopping Centre Details

1 - Shopping Centre Details

2 - Number Of Shops And Lettable Area

3 - Parking Facilities At Shopping Centre

4 - Facilities And Services Provided By Less

5 - Proposed changes to shopping centre

6 - Core Trading Hours

7 - Current Tenant Mix And Any Proposed Changes

8 - Introduction Of Competitor

9 - Tenant Association

10 - Advertisement etc of shopping centre