Rotman & Morris / Commercial Property Leases
Retail and commercial leases, renewals, variations, assignments and default notices for landlords, agents and solicitors across Victoria. You'll know the fee before we start, have a draft within three to four business days, and deal with the principal directly.
Fixed fees
Deal with the principal directly
Over 50 years' experience
Leasing enquiries
(03) 9555 9111 solicitors@rotmanmorris.com.auWhy use us
Agents know how to find tenants, but they aren't qualified to prepare legally binding documents. We are. We work from the LIV standard lease and have spent decades seeing where leases go wrong.
Fixed
Cost
A set fee for each document, so there are no surprise bills for drafting.
3–4 days
Drafts
Draft documents within three to four business days of receiving all the information we need.
24 hrs
Originals
Original leases within 24 hours of approval and payment.
24/7
Easy to use
Instruct us by email or online. Email support at any time on current files.
Services
We prepare new leases for shops, offices, factories and warehouses. For retail premises we also prepare the disclosure statement and provide the Victorian Small Business Commissioner information brochure. The fixed price includes one set of amendments to the LIV lease and all communication with the instructing party.
Fixed fee: Retail $850 · Non-retail $750Many landlords, tenants and agents assume an option can be exercised with a letter or an email. It can’t. We have seen the validity of a previous lease challenged, and parties left relying on monthly over-holding provisions. For retail leases, the landlord must give the tenant a current disclosure statement at least 21 days before the term ends. A renewal carries over the existing lease terms. If you have agreed new terms or option periods, a new lease is usually better. We prepare the notices once instructed, but we don’t diarise option dates; that stays with the landlord and agent.
Fixed fee: Retail $650 · Non-retail $550Parties often agree to change a lease during its term, especially long leases or where earlier renewals were never documented: the rent, extra option periods, or who is responsible for works. A variation can be made at any time. Apart from the amended terms, the existing lease stays in place. If the tenant asks for a variation, the landlord may be able to recover its cost.
Fixed fee: Variation retail $750, non-retail $650 · With renewal: retail $750, non-retail $650A formal assignment is needed whenever the landlord agrees to one tenant leaving and another taking over. The new tenant can’t simply start paying rent, and generic do-it-yourself forms are unreliable. The outgoing tenant must obtain the landlord’s consent and meet disclosure obligations under the Retail Leases Act. We run business and company name searches to confirm each party exists and is correctly named.
Fixed fee: Retail $600 · Non-retail $500 · With variation: $700A landlord and tenant may agree that the tenant sub-lets all or part of the premises for the rest of the term and any renewals. A landlord can claim reasonable legal costs connected with a sub-lease, so it is often more practical for the landlord’s lawyer to prepare it. The original tenant and any guarantors remain liable for the whole sub-lease period.
Fixed fee: Retail $1,100 · Non-retail $950A surrender releases the tenant (and/or guarantors) from the lease by agreement, usually on conditions. It isn’t needed when a tenant simply doesn’t exercise an option. Landlords should not release a signed surrender until every condition is met and all rent and outgoings are paid. The departing tenant usually pays the cost.
Fixed fee: $450If a tenant pays late or breaches the lease in another way, the landlord can’t just change the locks. The Property Law Act 1958 and the Retail Leases Act 2003 set out what a landlord can do, what the notice must say, and its timing. The fixed price covers taking instructions, reviewing the lease, and drafting and serving the notice. Costs are generally recoverable from the defaulting tenant. If the matter goes to the VSBC, VCAT or court, we can act.
Fixed fee: Notice of default (s 146) $500 · Notice of re-entry $350Whether you are a tenant about to commit or a landlord handed an agent-drafted lease, we review the document and the disclosure statement, and explain the terms that matter: rent reviews, options, outgoings, works and guarantees.
Fee: from $650.00 (dependent on complexity)Where a full lease isn’t appropriate, we prepare licence agreements setting out the terms of occupation.
Fixed fee: $750Fixed fees
Fees are plus disbursements and GST. Our fee includes an allowance for one set of amendments. If further amendments or communication are required, an additional charge may apply, and we'll confirm it before undertaking any additional work.
| Document | Retail | Non-retail |
|---|---|---|
| New lease | $850incl. disclosure statement | $750 |
| Renewal | $650incl. disclosure statement | $550 |
| Variation | $750 | $650 |
| Variation + renewal | $750incl. disclosure statement | $650 |
| Assignment (transfer) | $600incl. disclosure statement | $500 |
| Variation + transfer | $700 | $700 |
| Sub-lease | $1,100 | $950 |
| Surrender | $450 | $450 |
| Notice of default (s 146) | $500 | $500 |
| Notice of re-entry | $350 | $350 |
| Lease review | from $650.00dependent on complexity | from $650.00 |
| Licence agreement | $750 | $750 |
Included with a new lease or renewal
One set of amendments to the LIV lease
Disclosure statement and VSBC information brochure (retail)
All communication with the instructing party
Good to know
Disbursements (title and company searches) are usually under $100.
Payment by direct debit or credit card before original documents are released, unless otherwise arranged.
Leases with first-year rent over $200,000 are quoted separately.
Pay an account online →Instruct us
Step 1
Fill in the checklist below, or email or call us. You can attach the head lease and any other relevant documents in the form.
Step 2
We run title and company searches and send draft documents for review. One round of amendments is included.
Step 3
Once you approve and pay, we issue the final documents ready for signing.
Retail Leases Act 2003 (Vic)
Commercial leases fall into two groups: retail leases and other leases. Premises used wholly or mainly to sell or hire goods, or provide services, by retail are usually covered by the Act. It generally does not apply to:
1Leases for a term of less than one year
2Tenants that are listed corporations, or their subsidiaries
3Tenants whose occupancy costs (rent plus outgoings) exceed the statutory threshold
4Premises used for non-retail activities, such as wholesaling or storage
The disclosure statement
The lease sets out the legal relationship. The disclosure statement goes further, and must be given before the tenant commits. It covers:
When negotiations begin
The landlord or agent must give the prospective tenant the proposed lease and the VSBC information brochure. Not doing so is an offence.
Days before signing
The signed disclosure statement and proposed lease must be given at least 14 days before signing. If given late, the term starts 14 days after delivery. If never given, the tenant may give notice and, in some cases, terminate.
Days after tenant signs
The landlord must give the tenant a copy of the lease signed by both parties. If not, the tenant may be able to terminate.
General information only, not legal advice. Thresholds and time limits change, so speak with us about your lease.
FAQs
Yes. We take instructions from lawyers acting for landlords, and we won’t contact your client or solicit any other work from them. Accountants and financial advisers can also instruct us to prepare lease documents.
A common mistake is preparing a lease in a name that isn’t the registered owner. Searches also show whether a tenant company is in external administration, or whether a business name exists at all. Without them, a landlord may have no one to pursue.
Landlords often underrate guarantees until a tenant defaults. We suggest one or two guarantors, ideally people who own property in Victoria. Where the tenant is a company, its directors should guarantee the lease.
In most cases, yes. Hold a cash deposit or bank guarantee for the term, in addition to guarantees. A bank guarantee should have no expiry date, so it covers any holding-over period.
No. A tenant generally stays liable for rent and outgoings until the lease expires, or until a replacement tenant approved by the landlord starts paying. The landlord must make reasonable efforts to find a replacement quickly.
A detailed condition report from the agent helps avoid disputes about the state of the premises. Dated photographs are better still, showing partitions, shelving, carpet, paintwork and fixtures as they were when the lease began.
Generally, yes. But under the Retail Leases Act some outgoings, such as land tax and lease preparation costs, can’t be passed on to the tenant. In a retail lease, the disclosure statement must list each outgoing with an estimated dollar amount.
Useful links
Backed by a full-service suburban practice. Leasing work often goes hand in hand with property purchases, business sales and company structures. Our conveyancing and commercial teams work on the same files, from Bentleigh and Dromana.
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