Common terms

Disclosure Statement – is a statement required by South Australian retail tenancy legislation. It is given by the Landlord to the Tenant. It contains important details about the premises, the estimated outgoings, Tenant fitout requirements and shopping centre details. It must be given to a Tenant before a formal lease is signed. Please see our FAQs for further information.

Fitout – is not a precise term but generally refers to interior furnishings. What is considered part of the Tenant’s fitout will vary.  A fitout usually includes counters, shelves, display areas, painting and decorating.

Fittings – is not a precise term. Fittings usually include fixtures, partitions and equipment fixed to the premises in such a way as to become a permanent part of the premises, owned by the Landlord.

Lease Assignment/Assignment of Lease– means the transfer of the rights and obligations of the Tenant in the lease to a new Tenant who accepts them.

Tenant – means the same as ‘Lessee’ and is the person who leases the premises.

Landlord – means the same as ‘Lessor’ and is the person who owns the premises.

Make good – is not a precise term. It refers to the condition the Landlord requires the premises to be in, at the end of the lease.

Outgoings – are the Landlord’s expenses relating to the premises.
Some examples are:

  • rates and taxes including land taxes;
  • levies and charges under strata or community title legislation;
  • insurance;
  • cleaning;
  • gardening and landscaping;
  • caretaking;
  • security;
  • management, administration and marketing;
  • supplying, maintaining, repairing and replacing services;
  • building maintenance.

Land tax is not recoverable from a tenant if the Retail Tenancy Legislation applies.

Premises – the area being leased.

Relocation – means moving from one leased space to another during the term of the lease. The retail tenancy legislation states when the Tenant can be asked to move and what happens when they do.

Retail Shopping Centre – is defined as a cluster of premises with the following attributes:

  1. at least five of the premises are retail shops; and
  2. the premises are all owned by the same person, or have the same lessor or the same head lessor; and
  3. the premises are located in the one building or in two or more buildings that are either adjoining or separated only by common areas or other areas owned by the owner of the premises; and
  4. the cluster of premises is promoted as, or generally regarded as constituting, a shopping centre, shopping mall, shopping court or shopping arcade.

Security bond/Security deposit – a lease might require a Tenant to pay a sum of money as security against default. If a Tenant has carried out all of its obligations under the Lease this will be returned to the Tenant. The retail tenancy legislation fixes a maximum amount for the bond or deposit.  Please see our FAQs for further information.

Sinking fund – a Tenant may be required to pay into a fund which the LandLord uses for major repairs and maintenance. The retail tenancy legislation applies strict rules to these type of funds.