NSW Commercial Leases: Mandatory Retail Disclosure Statements

In New South Wales (NSW), the level of mandated disclosure heavily depends on whether a commercial property is classified as a "Retail Shop" under the Retail Leases Act 1994.

While general commercial leases rely entirely on the tenant performing their own due diligence, retail leasing places the burden of pre-lease transparency heavily on the landlord.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Failing to serve a proper disclosure statement can void a lease. Always consult a lawyer. Information last verified: March 2026.

Retail Leases: The Mandatory 7-Day Rule

If your property is governed by the Retail Leases Act, you cannot simply hand a tenant a lease and ask them to sign it.

You must provide a prospective tenant with a Lessor's Disclosure Statement (and a draft copy of the proposed lease, plus the NSW Retail Tenant's Guide) at least seven (7) days before they enter into the retail shop lease.

What Must Be Included?

The Lessor's Disclosure Statement is a highly standardized document that must detail:

• The exact term of the lease and any options to renew.
• The base rent and the exact method of rent reviews.
• A comprehensive, itemized estimate of all "outgoings" (operating expenses like council rates, land tax, insurance, cleaning) the tenant will be expected to pay.
• Planned or known disruptions, such as upcoming shopping center renovations or demolition works.
• Handover conditions and any required fit-out contributions.

The Lessee's Disclosure Statement

To balance the obligations, the tenant must also provide the landlord with a Lessee's Disclosure Statement within seven days after receiving the landlord's statement.

This statement confirms they have received the required documents, sought independent legal and financial advice (or actively waived their right to do so), and possess the financial capacity to meet the lease obligations.

The Penalty for Non-Disclosure

The penalty for failing to provide a Disclosure Statement—or providing one that is materially false or misleading—is devastating for a landlord.

If the landlord fails this obligation, the tenant has the right to legally terminate the lease at any time within the first six months after entering into it. The tenant can walk away without owing future rent and can pursue the landlord in NCAT for compensation related to their fit-out costs and business interruption.

General Commercial Leases

For non-retail commercial leases (warehouses, office towers), there is no statutory "Disclosure Statement" equivalent. The common law concept of caveat emptor (let the buyer beware) generally applies.

However, landlords still cannot engage in strictly misleading or deceptive conduct under the Australian Consumer Law (ACL). If a landlord deliberately lies about the structural integrity of a warehouse or hides known contamination, the tenant can still sue to void the lease.

Pre-Lease Checklists

Managing the 7-day minimum gap between serving the Lessor's Disclosure Statement and executing the final lease is exactly where administrative errors occur.

Landager enforces compliance by tracking standard commercial workflows. You can trigger the 7-day disclosure clock automatically, preventing the execution of the final lease document until the statutory waiting period has legally elapsed.

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