Required Disclosures in Tasmanian Commercial Leasing

In Tasmanian commercial real estate, disclosure requirements are governed primarily by the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998 (the "Code"), which became effective on 1 September 1998. While the Retail Leases Act 2022 has been passed, its substantive provisions remain uncommenced as of May 2026, meaning the 1998 Code continues to provide the absolute legislative authority for retail tenancies.

Whether a disclosure is required depends on a single factor: Does the lease fall under the definition of a "Retail Premises Lease" under the Code?

If the lease is for a standard commercial office or industrial warehouse (Non-Retail), the legal doctrine of caveat emptor (buyer/lessee beware) largely applies. However, if the lease is a retail tenancy, the landlord is legally burdened with strict pre-lease disclosure rules under Clause 6 of the Code.

Non-Retail Commercial Disclosures

For standalone corporate offices, industrial sheds, and medical suites not located in a retail shopping center, there is no mandatory statutory disclosure statement required prior to signing the lease under Tasmanian law.

The tenant is entirely responsible for conducting their own "due diligence" to ensure the property is zoned correctly for their intended industrial or office use, checking for structural integrity, or investigating previous environmental contamination. A landlord relies on general contract law regarding fraud—meaning they cannot actively conceal material defects or lie when directly questioned during negotiations.

Retail Leases: The Disclosure Statement

If the premises falls under the Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998, the landlord must provide the prospective retail tenant with a legally binding Disclosure Statement and a copy of the proposed lease.

Mandatory 7-Day Rule

The landlord must provide these documents to the prospective tenant at least seven (7) days before the prospective tenant executes the lease, enters into an agreement to lease, or takes possession of the premises.

Note on Waivers: Unlike other Australian jurisdictions, the current 1998 Tasmanian Code does not provide a formal statutory mechanism for a tenant to waive the 7-day disclosure period, even with a solicitor's certificate. The 7-day wait is a strict mandatory minimum.

Contents of the Disclosure Statement

The Disclosure Statement is a comprehensive document required under Clause 6 of the Code that must accurately summarize the financial and operational realities of the retail lease, including:

• The precise premises details and lettable area.
• The term of the lease (noting the statutory minimum of 5 years unless waived).
• The starting rent, rent review methodologies, and any "turnover rent" percentages.
• A detailed, itemized estimate of the tenant's proportion of Outgoings (property taxes, insurance, security, cleaning).
• Details regarding any shop fit-out requirements or landlord contributions.
• Details on the tenant's "Make Good" obligations at the end of the lease.

The Consequences of Failing to Disclose

The 1998 Code is designed to protect retail businesses from taking on unmanageable, hidden property debts. It is highly punitive to non-compliant landlords.

If a retail landlord in Tasmania:

1. Fails to provide the Disclosure Statement at least 7 days before the lease is signed; or
2. Provides a Disclosure Statement that contains false or misleading information, or fails to notify the tenant of material changes.

The tenant gains the legal right to terminate the lease under Clause 7 of the Code.

A tenant can terminate the lease by written notice at any time within three (3) months after the commencement of the lease if the landlord breached these disclosure obligations. Disputes regarding disclosure or termination can be referred to the Tasmanian Civil and Administrative Tribunal (TASCAT).

Perfecting Due Diligence Workflows

Ensuring your commercial leasing agents hit the 7-day milestone metric when onboarding a new retail tenant is critical to maintaining a legally binding lease in Tasmania. Landager automates commercial leasing workflows, generating compliant Lessor Disclosure Statements populated directly from the property’s audited outgoings ledger. The system timestamps the delivery to the prospective tenant, locking down the 7-day statutory wait period digitally.

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