For a retail shop lease in NSW, the landlord must give the tenant a lessor's disclosure statement at least seven days before the lease is entered into.
The tenant then gives the landlord a lessee's disclosure statement.
If the landlord's statement is not given, or is false, misleading or incomplete, the tenant may have rights, including a right to end the lease within the first six months.
What the disclosure statement is
It is a written statement of the key facts about the lease and the premises.
It is given for a new lease and for a renewal.
The NSW Small Business Commission publishes the form. Part A is the landlord's statement. Part B is the tenant's statement.
The timing
- The landlord gives Part A at least seven days before the lease is entered into.
- The tenant gives Part B to the landlord within seven days after receiving Part A.
- Both statements should be signed before the lease is signed.
Do not sign the lease if you have not received the landlord's statement.
How to check the landlord's statement
- Read every item in Part A, not only the rent.
- List each outgoing and other contribution the statement says you must pay.
- Compare every item against the lease itself. The two should match.
- Note anything that is blank, unclear or different from what you were told.
- Raise each point in writing with the landlord before you sign.
Undisclosed outgoings and contributions
Under the Act, a tenant is not liable to pay an outgoing unless the liability to pay it was disclosed in the landlord's disclosure statement.
A tenant also does not have to pay contributions that were not disclosed.
This is why the outgoings section of the statement matters. It sets the limit of what can be recovered from you.
If the statement is not given or is wrong
If the landlord does not give the statement, or the statement is incomplete, false or misleading, the tenant may have a right to terminate the lease within the first six months.
The tenant may also be able to recover compensation for costs of entering into the lease.
Only the tenant can apply to the NSW Civil and Administrative Tribunal for orders to rectify a lease or a disclosure statement.
Most retail tenancy claims must go to mediation with the NSW Small Business Commission before an application to the tribunal.
These rights have conditions and time limits. Get advice as soon as you find a problem.
Proposed changes to the law
In 2025 the Retail Leases Amendment (Review) Bill 2025 was introduced to the NSW Parliament. It proposes changes to the disclosure statement rules and the tenant's right to terminate.
Check the current law before you rely on this article.
Where people get caught
Signing the lease before receiving the statement
The seven-day period exists so you can read it and get advice.
Not checking the statement against the lease.
A mismatch can lead to a dispute about what you must pay.
Missing the six-month window.
A right to terminate is lost if it is not used in time.
Giving a careless lessee's statement.
Your own statement is also a formal document. Complete it accurately.
Common questions
Does the landlord have to give a disclosure statement on renewal?
Yes. A statement is required before a new lease and before a renewal.
Can I waive the seven-day period?
The seven days is set by the Act. Get advice before agreeing to any shortcut.
Is a disclosure statement needed for a commercial lease outside the Act?
Not under the Retail Leases Act. Our article on retail and commercial leases explains which leases are covered.
Received a disclosure statement? Have it checked against the lease before you sign. Call (02) 8062 6300.
This article is general information only. It is not legal advice for your situation.