Make sure the paperwork matches the deal
Start with what you agreed, then compare it with the proposed lease and disclosure documents. Is the rent-free period actually included? Are all the renewal options there? Do the rent increases match the discussions?
If an email promises one thing and the lease says another, have the difference resolved before signing. Do not assume the agent's explanation will fix an inconsistent clause later.
Check the basics as well: the correct tenant, the correct premises and the space you are entitled to use. If your company is meant to take the lease, putting your own name on it is not a minor detail. Storage, parking and outdoor areas should not be left to assumptions.
“Rent-free” does not necessarily mean cost-free
A fit-out period without base rent can still carry other charges. Ask when outgoings, utilities, insurance obligations and other payments begin, and whether the incentive depends on conditions you must meet.
The same applies to “gross rent”. What is included, and what can still be billed separately? Water charges or other extras can change the budget.
For a lease covered by Queensland's Retail Shop Leases Act 1994, statutory restrictions apply to recoverable outgoings. A charge does not become payable simply because someone puts it in a list. Land tax, capital costs, sinking-fund contributions and insurance allocations warrant careful checking rather than being accepted at face value.
Build your budget from the actual documents and estimates, not just the advertised rent.
Get the fit-out permissions sorted before ordering
Check what the landlord must approve, which plans are required, who can do the work and whether the centre has its own fit-out rules. Confirm what the landlord will provide at handover, including the condition and capacity of relevant services.
Landlord consent is not necessarily building, planning, fire-safety or other required approval. Your proposed business use and works may need separate checks.
Be especially careful with early access, preliminary agreements and deposits. Do not assume that leaving the formal lease unsigned means nothing is binding. Have any conditions, expiry dates, refund rights and permission to start work checked before committing money.
An option is not quite the same as extra years
A renewal option may help you recover the cost of a fit-out, but only if it exists in the final documents and you exercise it properly.
Check the notice window, notice method and any conditions. Also check how the rent will be reviewed during the initial term and on renewal. An option does not necessarily preserve today's rent.
If the lease and disclosure statement describe different options, resolve that mismatch. Then diary the actual dates. An informal conversation about staying on is not a safe substitute for the required notice.
Work out who owns the fit-out—and who removes it
You might be taking over a shop with counters, partitions or equipment already installed. That does not tell you who owns them, whether you may use them or who must remove them later.
Read the make-good clause before adding your own improvements. Depending on the documents and applicable law, the obligation may reach beyond what you install yourself.
Ask what must be removed, what must be reinstated and whether the landlord can require particular works. Get the starting condition and agreed exclusions recorded, supported by dated photographs. If removal is left to the landlord's election, check when that decision must be made.
The exit cost belongs in the budget from day one.
Repairs can be a much bigger promise than maintenance
Cleaning an air-conditioning filter and replacing an entire system are very different expenses. So are repainting a wall and repairing a structural defect.
Check responsibility for existing defects, major equipment, building services and structural work. Do not assume everything expensive belongs to the landlord—or that every broad repair clause is enforceable exactly as written. The lease, its condition evidence and applicable law need to be considered together.
Also look for refurbishment or redecoration obligations during the term. Could you face another round of spending before you have recovered the first fit-out cost?
Can the landlord move you or end the lease early?
Relocation and demolition clauses deserve attention before you invest in a location-specific fit-out.
For covered retail leases, Queensland legislation provides protections and procedures that cannot simply be signed away. But that does not mean relocation or demolition can never occur, or that every business loss will be compensated.
Check the contractual triggers alongside the statutory rules: notice, alternative premises, termination rights and compensation where applicable. Also compare the lease with any disclosure about redevelopment.
The question is not just how long the lease appears to run. It is what could interrupt that term.
Keep an eye on personal guarantees and incentive repayment
Taking a lease through a company does not protect your personal assets if you also give a personal guarantee or indemnity. Check what it covers, how long it lasts and what happens on renewal, assignment or termination.
Look for incentive clawbacks too. A rent-free period or fit-out contribution may come with a repayment clause if particular events occur. Its enforceability and effect need checking; do not assume every demand would be valid.
If you later sell the business, do not assume transferring the lease automatically releases you or your guarantor. There are statutory processes and protections for retail assignments, but the transaction and documents still matter.
Form 12 is part of the process, not the whole answer
First check whether the Retail Shop Leases Act applies. Not every commercial tenancy falls within it.
Where required, Form 12 is the legal advice report completed by an Australian lawyer and provided to the lessor before the prospective tenant or assignee enters the lease or assignment. It is not the landlord's disclosure statement, fit-out consent or financial advice report. Applicable exceptions also need checking.
The useful work is understanding the deal behind the form: the lease, disclosure documents, plans, incentives and any earlier agreement.
Before committing to the fit-out, ask:
Those questions are easier to deal with before the shop is fitted out and the money is spent. Send the proposed documents and tell us what you have already signed or paid. We can help identify the legal issues while there is still an opportunity to address them.
- Does the final paperwork match the agreed deal?
- What must I pay during the fit-out period and afterwards?
- Are the premises, permitted use and necessary approvals suitable?
- How secure are the term and renewal options?
- What must I repair, replace or remove?
- What could I still owe if the business closes or I sell it?
Sources and local information
General information about Queensland leases, not legal, financial, building or engineering advice for a particular tenancy. Statutory coverage, exceptions and the actual documents require individual checking.