Commercial Leases v Residential Leases

May 18, 2023 | Publication

In any dispute involving a lease, it is important to determine if the lease is a commercial lease or a residential lease.

Commercial leases have legislation that is relevant including theConveyancing Act 1919, the Real Property Act 1900 and the Retail Leases Act 1994.

Retail leases are a particular type of commercial lease and have detailed requirements.

For instance, a lessee under a retail lease is not liable to pay any amount to the lessor in respect of any outgoings unless the liability to pay the amount was disclosed in the lessor’s disclosure statement for the lease (section 12A of the Retail Leases Act 1994).

A lessor must not, in connection with a retail shop lease, engage in conduct that is, in all the circumstances, unconscionable (section 62B of the Retail Leases Act 1994).

Residential leases are governed in New South Wales by the Residential Tenancies Act 2010.

This legislation has detailed requirements.

For instance, a residential tenancy agreement cannot have terms relating to a tenant taking out insurance, or that if a tenant breaches the agreement, the tenant is liable to pay all or any part of the remaining rent under the agreement.

The Supreme Court of NSW deals with disputes relating to commercial leases.

The NSW Civil and Administrative Tribunal deals with disputes relating to retail leases and residential tenancies.

For an obligation free discussion regarding your legal requirements, please contact us on 1800 180 500 or

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