Does the Retail Shop Leases Act apply?
Not every commercial tenancy is a retail shop lease under Queensland's Act. The premises, business and statutory exclusions matter. Check that first, because it affects disclosure and advice requirements. A shopfront address in Caloundra does not answer the question on its own.
What Form 12 actually does
Form 12 is the legal advice report under the Retail Shop Leases Act. Where required, an Australian lawyer completes it after advising the prospective tenant or assignee, and it is provided to the lessor before entering the lease or assignment.
It is not the lease, the landlord's disclosure statement or a financial advice report. It does not certify that the business will succeed or make an unfavourable commercial deal a good one. Check the current requirements and any applicable exceptions for your transaction.
What could cost you more than the rent?
Read the lease and disclosure documents together. A headline rent is not the full occupancy cost, and a verbal assurance is not a substitute for checking what the documents actually require.
- Outgoings: which costs can be passed on, how they are calculated and what is excluded?
- Refurbishment and redecoration: can the lease require a refit during the term?
- Demolition or relocation: what rights and protections apply?
- Turnover rent: is part of the rent linked to sales, and how is turnover defined?
- Fit-out and make-good: what must you install, maintain or remove?
- Guarantees: who is personally liable, and when does that liability end?
An option is useful only if you exercise it properly
Check the dates, notice method and conditions for any renewal option. Missing the window can matter even when the landlord knows you want to stay. Put the actual dates in your diary and keep evidence of notices; do not rely on an informal conversation.
Also check permitted use, assignment and any special conditions. If you later sell the business, the lease may be central to what you can transfer and on what terms.
Bring the whole deal, not just the signature page
Send the proposed lease, disclosure documents, special conditions and any agreement about fit-out or incentives. Tell us whether this is a new lease, renewal or assignment and whether you have already signed anything.
We can discuss the legal review and Form 12 requirements separately from financial advice about the business. Where an accountant's financial advice report is required, the legal report does not replace it.
Cases and legislation
General information about Queensland retail leases, not advice about a particular tenancy. Statutory application, exceptions and current forms need checking for the transaction.