ACT Commercial Property Disclosures: The Mandatory Disclosure Statement

The foundation of commercial leasing regulation in the Australian Capital Territory (ACT) is the principle of transparency. To ensure commercial tenants fully understand their financial liabilities before committing, the Leases (Commercial and Retail) Act 2001 imposes a strictly regulated, mandatory disclosure process.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial compliance is strict; failure to provide correct disclosures carries heavy penalties. Always consult a qualified ACT solicitor. Information last verified: March 2026.

The Mandatory Disclosure Statement

The absolute most critical disclosure requirement for an ACT commercial landlord is providing the prospective tenant with a statutory Disclosure Statement.

Unlike residential laws which focus on habitability, the commercial Disclosure Statement focuses on financial transparency. It must be substantially in the "prescribed form" mandated by the ACT government and must detail:

• Rent: The starting base rent and exact mechanism for any future rent reviews.
• Outgoings: A detailed breakdown of estimated outgoings (property taxes, insurance, body corporate fees) the tenant will be liable for, including the method used to calculate their portion (often based on lettable area).
• Premises Details: Exact lettable area and permitted uses.
• Fit-out: Any required fit-out works and who is paying for them.
• Legal Warning: The statement must explicitly advise the tenant to seek independent legal advice before signing the lease.

Strict Timelines and Execution

The timing of the Disclosure Statement is arguably more important than its contents. The Act outlines very specific deadlines:

1. Provision: The landlord must provide the Disclosure Statement to the tenant at least 14 days before the lease is entered into.
2. Options to Renew: If a tenant is exercising an option to renew their lease, and requests a new disclosure statement, the landlord must provide one within 14 days of the request (provided the request happens no more than 3 months before the option date).
3. Signature: Both the landlord and the tenant must sign the document at least 7 days before the lease is entered into.

Note: The tenant is also typically required to sign and return the Disclosure Statement by the earlier of two dates: when they return the signed lease, or three months after the lease commencement.

The Penalty for Non-Compliance

The penalty for failing to provide a compliant Disclosure Statement within the 14-day statutory window is severe.

• If the landlord fails in this duty, the tenant gains a statutory right to terminate the lease without penalty.
• The tenant can exercise this right by giving 14 days' written notice to the landlord within the first five months of the lease starting.

Outgoings Estimates and Audits

Under the Act, a landlord cannot simply charge arbitrary outgoings. The Disclosure Statement provides the initial estimate. Afterwards, landlords must provide tenants with formal, audited statements of actual outgoings expenditure to ensure the tenant is only paying for legitimate, agreed-upon property costs.

How Landager Helps

Missing the 14-day Disclosure Statement deadline in the ACT can result in a catastrophic, penalty-free lease termination by a tenant. Landager’s compliance workflow engine tracks exact dates, locking the final lease signature process until our system verifies that a digitally signed, fully compliant Disclosure Statement was generated and served 14 days prior.

Back to ACT Commercial Lease Laws Overview.