What it does
These Regulations prescribe a Code of Practice for retail tenancies (Regulation 3; Schedule 1). The Code operates as a mandatory set of contractual and process rules that apply to many retail leases in Tasmania, primarily those with a lettable area of not more than 1 000 square metres (Schedule 1, Part 1, cl 2(1)). The Regulations commence on 1 September 1998 (Regulation 2) and provide a civil penalty for contravening any provision of the Code, set at a fine not exceeding 10 penalty units and a daily fine not exceeding 5 penalty units (Regulation 4).
Mechanically, the Code prescribes:
- minimum disclosure requirements and the required content of a disclosure statement (clause 6; Appendix B);
- rules about negotiation and clarity of documentation, including printed warnings and minimum font sizes (clauses 4, 5, 10; Appendix B);
- time limits and procedures for market rent reviews and option exercises, including an independent valuer process and valuation principles (clauses 12-13, 20-21; Appendix A);
- constraints on landlord practices, such as banning "key money" (clause 9), voiding indemnities that purport to shift landlord liabilities onto tenants (clause 31), and prohibiting certain turnover-based termination clauses (clause 36);
- governance of recoverable outgoings, auditing rules for expenditure and turnover, and limitations on what tenants must pay (clauses 15, 18-19);
- rights to compensation in defined circumstances, and notice and process rules for demolition, refurbishment and relocation (clauses 22-25, 35);
- dispute resolution steps and the establishment of a Monitoring Committee with functions and appointment mechanics (clauses 39-44).
The Code is explicitly incorporated into leases: a written lease must contain a provision that the Code and the disclosure required by clause 6(1) form part of that lease (Part 1, cl 2(5)). Where the Code conflicts with a lease, the Code prevails except where the Code otherwise provides (Part 1, cl 2(6)). The Code also sets enforceable procedural timelines that create consequences for non-compliance by either party; for example, failure by a property owner to give required market rent notice can bar the owner from seeking the adjustment (clause 13(5)).