NSW Real Estate Licence 1013554 Trust Account · Audited Annually · Privacy-First Processing Mon–Fri · 8:30am–5:30pm AEST (02) 8883 4559
NEW SOUTH WALES FREE AI LEASE REVIEW · COMMERCIAL + RETAIL VOL. I · ISSUE 04 · MMXXVI FILE LR/26/Q3-0118
Free · 3 minutes · no card

Read every clause that costs you money.

Upload your commercial or retail lease. Our AI checks 40+ clauses against NSW law and current market practice, flags the ones that cost you money, and emails you a plain-English report in three minutes. No card. No legal jargon.

NSW Retail Leases Act 1994
Rent reviews + ratchet clauses
Outgoings & recovery traps
Make-good standard
Bond / bank guarantee
Option mechanics + expiry
LicenseNSW Real Estate · 1013554
Powered by40+ NSW clause library
Volume to date120+ leases reviewed
PrivacyDeleted after 90 days
3-MIN · FREE
01 ROLE 02 LEASE 03 DETAILS
Are you the landlord or the tenant?
Upload your lease

Drop your lease PDF here

or click to browse. PDF only, up to 25 MB.

PDF must be text-based (you can select text in it). Scanned paper copies cannot be processed.

Your details
Your situation

Free. No obligation. Takes 3 minutes.

§ I · Nine categories · 40+ clause checks

Every clause that moves real money.

Rent reviews
CPI vs fixed vs market. Ratchet clauses. Compounding errors. Wrong index series. Notice windows missed.
Typical fix · $4–18k recovered
Outgoings recovery
Land tax (s.26 RLA). Capital vs operating misclassified. GFA vs NLA. Estimates never reconciled to actuals.
Typical fix · $10–30k / year
Make-good standard
"Original condition" vs "good repair". No baseline documented. Vague specifications. Capped vs uncapped works.
Typical fix · $20–60k at exit
Bond / bank guarantee
Quantum vs market. Expiry traps. Wording that lets the bank refuse to honour. Renewal mechanisms.
Typical fix · Protects $40k+
Option to renew
Notice period. Trigger date. Conditions precedent. Holdover risks. Lost options from one missed letter.
Typical fix · 3–5 yr term saved
Permitted use
Use too narrow (assignment killer) or too broad (unauthorised activities). Council DA mismatch.
Typical fix · Assignment unlocked
RLA disclosure
s.11 disclosure timing. s.16 minimum term. s.18 statement. Compliance gaps that void recovery.
Typical fix · Recovery rights restored
Insurance schedule
Public liability minimums. Plate glass. Named interests. Certificate of currency obligations.
Typical fix · Exposure closed
Default + termination
Default notice mechanics. Cure periods. Termination rights both ways. Hidden surrender triggers.
Typical fix · Position protected
§ II · Four steps · automated end to end

From upload to report, in 3 minutes.

01 Upload Drag your lease PDF into the dropzone. Up to 25 MB. Text-based PDFs only. ~20 sec
02 Parse Text extracted clause by clause. Schedules, special conditions, and annexures captured. ~30 sec
03 Score 40+ checks run against NSW law and current market practice. Each finding ranked by dollar impact. ~90 sec
04 Email Plain-English PDF report sent to your inbox. Findings ordered by money on the table. Instant
§ III · Specimen finding

What the report actually looks like.

Sample · page 04 of 23

Every finding has the clause reference, the impact, and the action.

No legalese. No filler. Each finding tells you exactly which clause it came from, what it means in plain English, what it costs you per year, and what to do about it. Findings are ranked by dollar impact so you read the expensive ones first.

$18,400 Average money on the table per lease, reviewed across 120+ leases.
SECTION 02 · OUTGOINGS
Three findings · est. $14,200 per annum
RED
Land tax recovered from a retail tenant
Clause 6.3.2 · s.26 Retail Leases Act 1994 (NSW)

Lease recovers land tax as a "statutory outgoing." Retail leases under the RLA cannot pass land tax to the tenant — the clause is void.

Action · Cease recovery · Refund ~ $6,800 / year

AMBER
Outgoings apportioned by GFA, not NLA
Clause 6.1 · Schedule 4

Tenant's share is calculated using gross floor area. Market practice (and the RLA) uses net lettable area, which is lower.

Action · Re-apportion · Save ~ $4,200 / year

AMBER
Annual reconciliation not specified
Clause 6.4 · s.28 Retail Leases Act 1994 (NSW)

Lease does not commit the landlord to reconcile estimated outgoings to actuals each year. Section 28 RLA gives the landlord 3 months from year-end. Missed deadline voids the right to recover the shortfall.

Action · Diary deadline · Protect ~ $3,200 / year

§ IV · The honest filter

When this helps you. When it won't.

Use this when

You've been handed a draft lease and want a market read before signing
You're about to renew an existing lease and want to spot the traps
You suspect your outgoings statements are wrong and want a second opinion
You're buying a property with an existing lease attached
You're a landlord whose tenant just queried a charge

Skip this when

You need formal legal advice with sign-off (use a solicitor)
The lease is a scanned image (PDFs must contain selectable text)
The lease is in another language (English only at this stage)
You're a tenant on a property Blox already manages (conflict of interest)
You want a residential lease reviewed (commercial + retail only)
Leases reviewed120+
Clause checks40+
Avg turnaround3 min
Cost$0
§ V · Common questions

What people ask before they upload.

01

Is this actually free?

Yes. No card, no trial, no follow-up call required. We learn what's in the NSW market by reviewing leases at scale, so we don't charge for it.

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02

How long does it take?

Three minutes for most leases. Larger or unusually complex leases can take up to five. We email the report as a PDF.

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03

Is the AI any good?

It catches what most generalist solicitors miss because it knows the NSW commercial market specifically. It does not replace legal advice. We recommend you use both.

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04

Who sees my lease?

Only the AI and our automated systems. We do not share it. The PDF is deleted from our storage 90 days after review.

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05

Can a tenant use this on a Blox-managed property?

No. If you are a tenant and the property is managed by Blox, the request will be declined. Conflict of interest.

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06

What if the PDF is scanned?

Scanned image PDFs can't be parsed reliably. The PDF must contain selectable text. Most modern leases do; older scanned ones don't.

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How the lease review works

Three steps. About two minutes from upload to a completed on-screen audit.

1

Upload your lease

Drop the PDF into the form. Takes under 30 seconds. Commercial, retail, industrial, office, medical, childcare, mixed use. All NSW sectors covered.

2

The AI reads it line by line

Every clause is checked for money on the table, NSW Retail Leases Act 1994 compliance, and hidden landlord or tenant exposures. The same checks Blox runs on managed properties.

3

Review your audit

Your plain-English audit opens on screen within minutes. Click each finding to read the clause reference, what it means, and what to do. Bookmark the link so you can come back to it.

How AI reads a commercial lease

The Blox AI does not scan for keywords. It reads every clause in context, maps it to a legal category, and checks it against NSW law and current market terms.

01

PDF to full text

Your lease PDF is converted to structured text before analysis. Every word, body clauses, schedules, definitions, and handwritten amendments is captured. The AI reads the whole document, not a sample.

02

Clause categorisation

Each clause is mapped to one of 40+ legal categories: rent review type, outgoings methodology, option windows, make good scope, assignment rights, bank guarantee terms. The AI knows which NSW Retail Leases Act 1994 sections apply to each category.

03

Risk assessment

Clauses are checked against NSW law and current Western Sydney market terms. Void provisions (s.18 ratchet clauses and s.26 land tax recovery in retail leases) are flagged regardless of how the drafter worded them.

04

Plain-English findings

Each issue is translated into plain language with the clause reference, what it means in practice, and a recommended next step. The report ranks findings by financial impact so you know where to focus first.

AI review vs your other options

AI review (free) DIY checklist Solicitor review
Time2 minutes30-60 minutes2-5 business days
CostFreeFree$800-$2,500+
40+ clause categoriesYesNoYes
NSW Retail Leases Act checksYesPartialYes
Void clause detectionYesNoYes
Plain-English report on screenYesNoYes
Legal adviceNoNoYes
Best forFirst pass, identify issuesSimple self-check onlyDisputes, complex matters

NSW commercial lease review checklist: 40+ clause categories

More than 40 clause and compliance checks across every major risk in NSW commercial and retail leases. Each category below is covered in the free AI audit.

Rent reviews

CPI compounding methodology, ratchet clauses (void for retail under s.18 of the Retail Leases Act), market review triggers, review timing, valuer dispute provisions.

Outgoings recovery

Tenant proportion calculation (NLA versus GFA), prohibited costs, capital expenditure carve-outs, land tax recovery void status under s.26, statutory deadline under s.28.

Bank guarantee and security

Amount versus exposure, indexation, return timing, unconditional form, replacement on expiry, draw-down process compliance.

Make good obligations

Scope definition, schedule of condition reference, disconnection requirements, fair wear and tear treatment, cash settlement options.

Options to renew

Notice window analysis, statutory reminder requirement (s.44 retail), market review at option exercise, escalation clauses, cap structures.

Assignment and subletting

Consent process, change of control, tenant covenant assessment, original tenant continuing liability, bank guarantee transfer rules.

Demolition and relocation

Notice period, genuine proposal test (s.35 retail), tenant compensation rights, fitout writedown calculations, business interruption considerations.

Permitted use and exclusivity

Use restrictions, ancillary use scope, council and DA alignment, exclusivity covenants for centre tenants, change-of-use consent requirements.

Disclosure and statutory compliance

Lessor disclosure statement (s.11 retail), prohibited terms, mediation requirement at NSW Civil and Administrative Tribunal, Section 16 minimum five-year term test.

Commercial vs retail lease review

Same upload. The audit identifies the lease type and applies the right compliance framework.

Commercial lease review

NSW office, industrial, warehouse, medical, childcare, mixed-use.

  • CPI rent reviews. Compounding methodology, ratchet clauses, review timing.
  • Market rent review at option exercise. Floor protections and methodology.
  • Outgoings recovery. Proportion calculation, prohibited costs, capex exclusions.
  • Bank guarantee adequacy. Amount versus exposure, indexation, top-up rights.
  • Make good obligations. Scope, schedule of condition, fair wear and tear.
  • Assignment rights. Change of control, consent, BG increase on transfer.
  • Tenant covenant. ACN search, sector context, recommended due diligence.

Retail lease review

NSW Retail Leases Act 1994. Adds these statutory checks on top.

  • Minimum 5-year term requirement (Section 16).
  • Disclosure statement compliance and consequences of non-disclosure.
  • Land tax recovery prohibition (Section 26). Voids any retail-tenant land tax clause.
  • Outgoings statements requirement and statutory deadlines (Section 28).
  • Prohibited terms. Fitout payments, key money, restrictions on sale of business.
  • Demolition and relocation rights and compensation provisions.
  • Mandatory mediation at NSW Civil and Administrative Tribunal.

Not sure which applies to your lease? Upload it. The review identifies whether the lease falls under the Retail Leases Act and applies the right compliance framework.

Start the audit

Built by NSW commercial property specialists

🏢

Licenced NSW agency

Blox Commercial Real Estate holds NSW Licence 1013554. The lease checks are written by commercial property managers who review leases on managed portfolios daily, not by a general-purpose algorithm.

📋

NSW law, not generic templates

The audit applies NSW-specific legislation: the Retail Leases Act 1994, the Conveyancing Act 1919, and NCAT dispute procedures. Generic lease tools written for other jurisdictions miss half these checks.

📍

Western Sydney specialists

Based at Norwest Business Park, Blox has managed commercial property across Greater Western Sydney since 2019. The audit flags local market rent benchmarks and suburb-level outgoings norms where data supports it.

🛡️

Free and obligation-free

No card required. No upsell wall. The review is free because most people who upload a lease become clients, and we would rather earn that relationship with a useful first step than a sales call.

Questions about your lease before you upload? Call (02) 8883 4559 or send us a message.

Common questions

Is this actually free?

Yes. The audit is free with no obligation. There is no card required and no upsell wall. We offer it as a way to introduce ourselves to NSW landlords, tenants, and advisors who may need a property manager, buyer agent, or sales agent down the line.

How long does it take?

About two minutes from upload to a completed audit. The AI reads the lease, runs the clause checks, and drafts findings. The report opens on screen the moment the analysis finishes.

Does it cover NSW Retail Leases Act compliance?

Yes. If the lease is a retail shop lease, the review applies the statutory checks under the Retail Leases Act 1994 (NSW). This includes the disclosure statement (s.16), prohibited terms, ratchet void status (s.18), land tax recovery void (s.26), outgoings statement deadline (s.28), demolition notice period (s.35), and assignment provisions (ss.39 to 41).

Is my lease confidential?

Yes. We do not share or sell uploaded leases. The PDF is used only to generate your audit and is deleted from storage after 90 days.

What types of leases can I upload?

Office, industrial, warehouse, medical, childcare, mixed-use, and retail leases. Single-tenant and multi-tenant. NSW only.

Is this legal advice?

No. The audit is a commercial intelligence tool. For decisions on contract validity or dispute strategy, take the audit to a qualified property lawyer. The audit is designed to help you identify what to ask them about and to spot money on the table.

What is a ratchet clause and when is it void?

A ratchet clause stops rent falling during a market review even if market rents have dropped. For retail leases in NSW, ratchet clauses are void under Section 18 of the Retail Leases Act 1994. For commercial leases they are enforceable. The audit flags every ratchet clause and tells you whether it can actually be enforced against you.

Can a landlord charge a retail tenant for land tax?

No. Section 26 of the Retail Leases Act 1994 (NSW) makes any clause requiring a retail tenant to pay or reimburse land tax void and unenforceable. The audit flags outgoings clauses that purport to recover land tax from retail tenants. For non-retail commercial leases, land tax recovery depends on the wording of the lease. See our outgoings calculator for more.

How do I exercise my option to renew?

You must exercise the option strictly within the window set in your lease, usually three to six months before expiry. Missing the window generally means the option lapses permanently. For retail leases in NSW, your landlord must remind you of the window under Section 44 of the Retail Leases Act. The audit tells you the exact dates and flags any missing statutory reminder. Use our lease health check if your lease is coming up for renewal.

What does make good require at the end of my lease?

Make good requires you to restore the premises to a specified condition at the end of the lease, typically removing fitout, reinstating walls and services, and repainting. The scope varies significantly between leases. The audit identifies what your lease requires, whether a schedule of condition exists, how fair wear and tear is treated, and whether there is a cash settlement option.

How are outgoings calculated under an NSW commercial lease?

Outgoings are recoverable building costs passed to tenants in proportion to their area. The proportion should be based on net lettable area (NLA), not gross floor area (GFA). Using GFA understates the tenant's share. The audit checks the methodology, identifies prohibited items, and flags whether the lease allows estimates reconciled annually to actuals. For a detailed calculation, try our outgoings calculator.

What is the minimum term for a retail lease in NSW?

Under Section 16 of the Retail Leases Act 1994 (NSW), a retail shop lease in a shopping centre must have a minimum term of five years including any options. For retail leases outside a shopping centre, there is no statutory minimum term, but the five-year minimum is commonly misapplied by landlords. The audit checks whether your lease meets the statutory minimum if it is a retail shop lease and flags any potential right of termination if the disclosure statement was defective and the term was below five years.

What happens if the landlord fails to provide a disclosure statement?

Under Section 16 of the Retail Leases Act 1994 (NSW), a retail tenant must receive a completed disclosure statement at least seven days before entering into the lease. If the landlord fails to provide it, or provides a materially defective statement, the tenant may have the right to terminate within six months of entry. The audit checks whether your lease documents refer to a disclosure statement and flags any indication it may have been missing or incomplete at the time of signing.

What is the difference between NLA and GFA in a commercial lease?

Net lettable area (NLA) measures the usable floor space a tenant actually occupies, excluding structural walls, common areas, and shared amenities. Gross floor area (GFA) measures the total footprint of the building including those excluded areas. Outgoings proportions should be calculated on NLA. Using GFA understates the tenant's share, meaning the landlord absorbs the shortfall. This is one of the most common recoverable-cost errors in NSW commercial leases. The audit checks whether your outgoings clause specifies NLA or GFA and flags the gap.

Can a tenant assign a commercial lease in NSW?

Generally yes, subject to the landlord's consent and the assignment provisions in the lease. For retail leases, Section 39 of the Retail Leases Act 1994 (NSW) requires the landlord not to unreasonably withhold consent to an assignment. The landlord may require the assignee to meet financial and business-experience tests set in the lease. For commercial leases that are not retail shop leases, assignment rights depend entirely on the lease terms. The audit identifies every assignment clause, consent requirement, bank guarantee top-up condition, and change-of-control trigger in your lease.

What is a bank guarantee in a commercial lease and how much should it be?

A bank guarantee is a financial instrument provided by a tenant's bank guaranteeing payment of the lease obligations up to a nominated amount. It is the landlord's security deposit equivalent. There is no statutory minimum amount for commercial leases in NSW. Common amounts range from three to six months of gross rent. The audit checks the bank guarantee amount relative to total lease exposure, whether the lease requires indexation or top-up after rent increases, and whether the landlord has the right to call on the guarantee without prior notice. See our commercial property management fees page for more on how bank guarantees are managed.

How much does a commercial lease review cost in NSW?

A lawyer-conducted commercial lease review in NSW typically costs $800 to $2,500 depending on the lease length and complexity, with specialist commercial property solicitors sometimes charging more for complex multi-tenancy or long-term leases. Blox Commercial's AI lease review is free. It covers the same 40+ clause categories in about two minutes. The AI review does not replace legal advice for complex matters or disputes, but it identifies which clauses are worth taking to a lawyer so you spend your legal budget on what actually matters. Upload your lease at the top of this page and the audit appears on screen immediately.

What is the difference between a gross lease and a net lease in NSW?

Under a gross lease, the tenant pays a single inclusive rent and the landlord covers all outgoings including council rates, water, insurance, and strata levies from that rent. Under a net lease (also called a triple net or NNN lease), the tenant pays a base rent plus their proportionate share of outgoings directly. Most NSW commercial leases are net leases. Most NSW retail shop leases are also net but the Retail Leases Act 1994 restricts which outgoings categories can be recovered. The audit identifies whether your lease is gross or net, what outgoings are recoverable, and whether any prohibited categories are included in the schedule.

Can I break a commercial lease early in NSW?

Breaking a commercial lease early in NSW generally requires the tenant to pay compensation to the landlord, typically covering unpaid rent until a replacement tenant is found and any landlord costs in re-letting. The exact entitlement depends on the lease's early termination and mitigation clauses. Some leases include a break fee that caps liability at a fixed amount, often three to six months rent. For retail shop leases, the Retail Leases Act 1994 does not override the general law position on early termination except in narrow circumstances such as the landlord's failure to deliver the premises or a defective disclosure statement. The audit flags what your lease says about early termination, any break fee mechanism, and the landlord's obligation to mitigate by re-letting.

What are common red flags in an NSW commercial lease?

The most common lease red flags Blox identifies are: ratchet clauses preventing rent from falling at market review (void in retail leases under s.18 of the Retail Leases Act 1994); outgoings schedules that include land tax (void in retail leases under s.26); GFA instead of NLA used to calculate the outgoings proportion; options with very short exercise windows of 30 days or less; no make-good schedule of condition at lease commencement creating disputes at exit; bank guarantees with no expiry cap meaning the landlord can hold the guarantee indefinitely; and demolition clauses that allow the landlord to terminate with less than six months notice. The free AI review flags each of these automatically in the audit report.

Is AI accurate for commercial lease review?

The AI reliably identifies common lease risks: ratchet clauses, void outgoings provisions, short option windows, missing make-good schedules, and bank guarantee exposure gaps. Accuracy is high for standard NSW commercial leases because the drafting follows established patterns. Where accuracy drops: heavily negotiated bespoke clauses, handwritten amendments, and multi-document leases where schedules contradict the body. For a standard office, industrial, or retail lease, the AI catch rate across 40+ clause categories is high enough to be a meaningful first pass. For complex or disputed matters, use the AI report to brief a solicitor efficiently.

Can AI replace a solicitor for lease review in NSW?

No. The AI identifies clause risks, flags void provisions, and surfaces issues worth investigating. It cannot give legal advice, advise on rights in a specific dispute, negotiate on your behalf, or make judgement calls about risk tolerance. The free AI review answers one specific question: which clauses in this lease are worth taking to a solicitor? It narrows your legal spend to what actually matters. Use it as a first pass, not a substitute for legal advice on high-stakes decisions.

What AI technology powers the free lease review?

The Blox lease review uses a large language model trained on extensive legal and commercial text. Your lease PDF is converted to full text, then sent to the AI with NSW-specific instructions covering the Retail Leases Act 1994 provisions, current Western Sydney market terms, and the clause categories Blox checks on every managed property. The model does not retain your lease between sessions. Your document is deleted from storage after 90 days.

How does the AI read my lease PDF?

After you upload, the PDF is converted to text page by page. Schedules, definitions, and tables are all included. The extracted text is passed to the AI with instructions to identify and analyse specific clause types across 40+ categories. The AI reads the full document, not just key sections, so it catches issues buried in schedules and definitions that a keyword scan would miss. A typical 30-page commercial lease takes about 90 seconds to analyse.

What a commercial lease review covers in NSW

A NSW commercial lease review examines every clause against current market practice and applicable legislation. The two questions it answers: is this lease legally compliant, and is it commercially fair?

The clause categories every NSW lease review should cover

  • Rent and reviews — fixed increases, CPI, market reviews, ratchet clauses, and whether the review mechanism allows rent to fall
  • Outgoings — what cost categories are recoverable, how the floor area proportion is calculated (NLA versus GFA), and prohibited items including land tax under retail leases
  • Make good — what the tenant must reinstate at end of term, the baseline condition at lease start, and whether a cash settlement alternative exists
  • Options and renewal — the notice window, strict exercise requirements, the rent reset mechanism at renewal, and landlord reminder obligations under retail law
  • Assignment and subletting — consent requirements, change-of-control triggers, bank guarantee top-up conditions, and landlord consent criteria
  • Bank guarantee and security — the amount relative to total lease exposure, indexation requirements after rent increases, and the landlord's right to call without prior notice
  • Termination and default — cure periods, the consequences of breach, demolition notice entitlements, and early termination rights

NSW Retail Leases Act 1994 compliance

Retail shop leases attract statutory requirements that do not apply to general commercial leases. The Retail Leases Act 1994 (NSW) governs any lease where the tenant carries on a retail business. A retail lease review checks:

  • Disclosure statement provided at least seven days before signing (s.16)
  • Ratchet clause void status at market rent review (s.18)
  • No land tax recovery from the tenant (s.26)
  • Outgoings statement issued within three months of lease year end (s.28)
  • Option reminder notice obligation on the landlord (s.44)
  • Assignment consent standards (ss.39 to 41)

For leases outside the Retail Leases Act, including office, industrial, warehouse, and childcare properties, the review applies the common law position and NSW Conveyancing Act 1919 requirements.

Landlord vs tenant perspective

Landlords look for: gaps in outgoings recovery, soft bank guarantee amounts, ambiguous make-good scope, and assignment controls that could allow an underqualified tenant to take over.

Tenants look for: inflated rent review mechanisms, unfair ratchet clauses, excessive make-good obligations, land tax exposure, and options drafted so the exercise window is easy to miss.

The Blox AI lease review checks all 40+ clauses from both perspectives. You select your role when you upload and the findings are framed accordingly.

Upload your lease for a free NSW commercial or retail lease review. Three minutes. No card required.

The 40-point commercial lease review checklist for NSW

Use this checklist before signing, renewing, or negotiating any NSW commercial or retail lease. The free AI audit checks all 40 points automatically.

  1. Base rent, commencement date, and any rent-free period
  2. Rent review type: fixed, CPI, market, or hybrid
  3. CPI series and compounding methodology
  4. Ratchet clause: can rent fall at a market review?
  5. Retail ratchet void status under s.18 Retail Leases Act 1994
  6. Rent review notice periods and strict timing
  7. Valuer appointment process if parties cannot agree
  8. Gross versus net lease: which outgoings are payable?
  9. Outgoings proportion: NLA or GFA calculation base?
  10. Prohibited outgoings: capital, land tax, management fees
  11. Land tax recovery clause void for retail tenants (s.26)
  12. Annual outgoings reconciliation deadline (s.28 for retail)
  13. Outgoings estimate: capped or uncapped against actuals
  14. Make good scope and reinstatement obligations
  15. Schedule of condition at lease commencement
  16. Fair wear and tear treatment at exit
  17. Cash settlement option as an alternative to make good
  18. Fitout write-down and depreciation calculation at exit
  19. Option to renew: strict exercise window and dates
  20. Landlord option reminder notice obligation (s.44 retail)
  1. Rent reset mechanism at option exercise
  2. Escalation clause or fixed increase on renewal
  3. Demolition notice period and minimum entitlement
  4. Genuine proposal test for demolition (s.35 retail)
  5. Tenant compensation on demolition: fitout and business loss
  6. Assignment consent grounds and approval process
  7. Change-of-control triggers affecting assignment
  8. Original tenant continuing liability after assignment
  9. Bank guarantee top-up condition on assignment
  10. Subletting restrictions and landlord consent scope
  11. Bank guarantee amount relative to total lease exposure
  12. Bank guarantee indexation after rent increases
  13. Bank guarantee call rights: notice required or not?
  14. Bank guarantee return timing at lease expiry
  15. Permitted use definition and ancillary use scope
  16. Exclusivity covenant for shopping centre tenants
  17. Lessor disclosure statement timing and completeness (s.16)
  18. Minimum five-year term for retail leases in shopping centres
  19. Insurance obligations: type, amount, and required policy form
  20. Default cure periods and termination notice requirements

The free AI review checks all 40 points in two minutes. Upload your lease now.

NSW Retail Leases Act 1994: what landlords and tenants need to know

The Retail Leases Act 1994 (NSW) overrides anything in your written lease that conflicts with it. Clauses that breach the Act are void even if both parties signed them.

Which leases does the Retail Leases Act cover?

The Act applies to leases of retail shop premises in NSW. A retail shop is any premises used predominantly for the carrying on of a retail business listed in Schedule 1 of the Act. The most common categories include food and beverage, clothing and footwear, electronics, hairdressing, health and beauty, and professional services where members of the public attend the premises.

The Act does not cover premises with a floor area exceeding 1,000 square metres, premises used wholly or predominantly as a service station, or leases between the Crown and a lessee.

Key tenant protections under the Retail Leases Act 1994 (NSW)

  • Disclosure statement (s.16): The landlord must provide a completed disclosure statement at least 7 days before the tenant signs. A missing or defective statement gives the tenant a right to terminate within 6 months.
  • No ratchet clauses (s.18): Any clause preventing rent from falling at a market review is void. Market rent reviews must allow rent to move up or down to the true market level.
  • No land tax recovery (s.26): Landlords cannot recover land tax from retail tenants. Any outgoings clause that includes land tax is void and unenforceable.
  • Outgoings reconciliation deadline (s.28): The landlord must provide actual outgoings statements within 3 months of the end of each accounting year. Missing this deadline extinguishes the right to recover any shortfall for that year permanently.
  • Option reminder notice (s.44): The landlord must notify the tenant of an upcoming option window between 6 and 12 months before the exercise date. Failure to do so may entitle the tenant to renew even after the deadline passes.
  • Assignment rights (ss.39 to 41): The landlord cannot unreasonably withhold consent to an assignment. The tenant must be given a decision within 28 days. Unreasonable refusal can entitle the tenant to compensation.
  • Minimum term (s.16C): Retail shop leases in a retail shopping centre must have a minimum term of 5 years including options. Leases below this term may be terminated by the tenant within 6 months of entry if the disclosure statement was also defective.
  • Key money prohibition (s.15): A landlord cannot require or accept a payment as a condition of granting, renewing, or extending a retail lease beyond the rent and permitted fees.

Common Retail Leases Act breaches the AI audit catches

Many retail leases are signed with clauses that conflict with the Act. Some landlords include them in error, some in hope. Either way, a void clause has no legal effect even if the tenant paid under it for years.

  • Ratchet clause drafted as a market review: The lease describes the review as "market" but includes a floor provision preventing rent from falling. This is void under s.18 regardless of how it is labelled.
  • Land tax in the outgoings schedule: A lease outgoings clause lists "land tax" as a recoverable item. The clause is void under s.26. The tenant is not required to pay it, but many do because they do not know it is void.
  • Outgoings reconciliation clause with no deadline: The lease gives the landlord unlimited time to reconcile outgoings. The statutory 3-month deadline under s.28 applies regardless of what the lease says. If the landlord misses it, the right to recover shortfalls is gone.
  • Disclosure statement delivered on signing day: The lease was handed to the tenant with the disclosure statement at the same appointment. The 7-day advance requirement under s.16 was not met. The tenant may have a termination right.
  • Assignment clause with absolute refusal right: The lease gives the landlord absolute discretion to refuse assignment. This conflicts with ss.39 to 41 and is void for retail shop leases.

How the free AI review applies the Retail Leases Act

When you upload a retail lease, the AI identifies whether the Retail Leases Act 1994 applies based on the premises type and use. It then checks every clause against the statutory requirements and flags conflicts, void provisions, and potential termination or recovery rights.

The AI flags clauses that are void, clauses that contradict the Act but cannot be contractually overridden, and obligations the Act imposes on the landlord that may not be reflected in the written lease.

Upload your retail lease for a free NSW Retail Leases Act compliance check.

Blox Commercial Real Estate Pty Ltd
NSW Real Estate Licence 1013554 · (02) 8883 4559 · management@bloxcommercial.com.au

This intelligence is generated by AI and is provided as general guidance only. It is not legal or financial advice. Always confirm specific clauses with a qualified solicitor before acting.