Business & commercial
Commercial lease critical-terms checklist — WA
Direct answer: Before signing a commercial lease, review the premises, permitted use, term, options, rent reviews, outgoings, security, personal guarantees, fit-out, repairs, assignment and make-good obligations. Confirm whether WA retail-shop legislation applies. A favourable headline rent can be outweighed by long-term costs and exit restrictions.
Obtain advice before
- signing an offer to lease, heads of agreement or disclosure acknowledgment;
- paying a non-refundable amount;
- ordering fit-out works;
- giving a personal guarantee or bank guarantee;
- relying on verbal promises about exclusivity, access, works or incentives;
- exercising an option or agreeing to an assignment;
- assuming retail-shop protections apply.
Parties and premises
- Correct landlord and tenant legal entities.
- Guarantors and signing authority.
- Accurate premises plan, area, car bays and storage.
- Access hours, loading, common areas and services.
- Condition report and existing defects.
- Permitted use broad enough for the business plan.
- Planning, licence and regulatory approvals.
- Exclusivity or competing-use protection if negotiated.
Term and options
- Commencement date and rent-start date.
- Initial term.
- Option terms and exact notice windows.
- Conditions that can defeat an option, including default.
- Holding-over arrangement.
- Redevelopment, relocation or demolition rights.
- Critical dates entered into a controlled reminder system.
Rent, incentives and outgoings
- Base rent and GST.
- Fixed, CPI or market-rent review formula.
- Ratchet or minimum-increase provision.
- Rent-free period, contribution or fit-out incentive.
- What happens to an incentive after assignment or default.
- Every recoverable outgoing.
- Estimate, reconciliation and audit rights.
- Land tax, management fees and capital expenditure treatment.
- Utilities and separately metered services.
Security and liability
- Security deposit or bank-guarantee amount.
- Required wording, issuer, expiry and replacement process.
- Personal guarantee scope and duration.
- Indemnities and exclusions of landlord liability.
- Required insurance and evidence of cover.
- Whether liability continues after assignment or lease expiry.
Fit-out, repair and make-good
- Landlord works and completion standard.
- Tenant fit-out approval and ownership.
- Building approvals and contractor requirements.
- Repair, maintenance and replacement responsibilities.
- Air-conditioning, plumbing, electrical and structural items.
- Alteration and signage rights.
- Make-good standard at the end of the lease.
- Removal or retention of fit-out.
- Condition report with dated photographs.
Assignment, sale and exit
- Assignment and subletting conditions.
- Change-of-control restrictions.
- Landlord consent process and information required.
- Landlord legal or administration costs.
- Release—or continuing liability—of tenant and guarantors.
- Interaction with a future business sale.
- Default, termination, re-entry and goods-left-behind provisions.
- Dispute-resolution process.
Retail lease questions
- Does the Commercial Tenancy (Retail Shops) Agreements Act 1985 (WA) apply?
- Was required disclosure provided?
- Are prohibited or regulated charges involved?
- Do statutory option, relocation or dispute provisions affect the lease?
Do not assume a lease is or is not “retail” from its title alone.
What happens next?
Legal Care Australia can review and negotiate commercial and retail leases, options, assignments and guarantees where it accepts the matter.
Client next step: Send the complete draft lease, offer, disclosure statement, plans, incentive proposal and deadline through the secure process before signing.
Official information
General information only. Lease obligations depend on the complete documents and legislation applying to the premises.