Required Disclosures in Tasmanian Commercial Leasing

In Tasmanian commercial real estate, disclosure requirements vary enormously based on a single factor: Does the lease fall under the new Retail Leases Act 2022?

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 Premises Lease," the landlord is legally burdened with extremely strict pre-lease disclosure rules.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. The Retail Leases Act is a highly technical piece of legislation. Always consult a licensed commercial property solicitor for advice specific to your situation. Information last verified: March 2026.

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 Lessor Disclosure Statement

If the premises falls under the Retail Leases Act 2022, the landlord must provide the prospective retail tenant with a legally binding Lessor Disclosure Statement and a copy of the drafted 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 or enters into the retail tenancy.

Important Note: Under the modern Act, a prospective tenant can often waive this 7-day minimum waiting period if they obtain a waiver certificate from an independent solicitor confirming they understand their rights and the implications of signing early.

Contents of the Disclosure Statement

The Lessor's Disclosure Statement is a comprehensive, heavily legislated document 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 and any options to renew.
• 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 contributions.
• Details on the tenant's "Make Good" obligations at the end of the lease.

The Consequences of Failing to Disclose

The Retail Leases Act 2022 is designed to protect small 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 Lessor Disclosure Statement at least 7 days before the lease is signed; or
2. Provides a Lessor Disclosure Statement that is "defective" (e.g., it contains false or heavily misleading information regarding the actual cost of outgoings).

The tenant generally gains the legal right to terminate the lease.

A tenant can usually terminate the lease within six (6) months of entering into it if the landlord blatantly breached the pre-lease disclosure obligations, allowing the tenant to walk away from the business without facing massive "break-lease" financial penalties.

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.

Back to Tasmania Commercial Landlord-Tenant Laws Overview.