New QLS/REIQ contract – Commercial Tenancy Agreement
17 August 2017
QLS and REIQ have jointly endorsed a new Commercial Tenancy Agreement for use by members.
The Commercial Tenancy Agreement joins the suite of jointly endorsed QLS/REIQ contracts available to our members.
The new Commercial Tenancy Agreement (4th edition), including a brief overview, can be accessed at qls.com.au (member log-in required).
The agreement has been endorsed following extensive review by the QLS Property and Development Law Committee in light of its members’ practical experience and to reflect best practice. This has been a significant project for the committee and will be a tangible new benefit for our members.
A brief summary of the key differences between the jointly endorsed 4th edition and the REIQ 3rd edition Commercial Tenancy Agreement are:
- Instructions to complete updated to include an instruction not to use this document for a high-value lease and amended instructions about rent review and outgoings.
- Reference schedule amended in relation to Guarantor details, Option of Renewal, Rent Review, Outgoings and new Guarantor execution clauses.
- New definitions of ‘Centre’, ‘Default Interest Rate’, ‘Outgoings’ and ‘Tenant’s Services’ (replacing ‘Services’), with consequential changes throughout.
- Amendments to these clauses:
- Clause 2 – Term and Holding over – new clause 2.2
- Clause 3 – Rent Review
- Clause 4 – Outgoings
- Clause 8 – Tenant’s Release and Indemnity
- Clause 9 – Default and Termination
- Clause 12 – new – Interest for Late Payment
- Clause 15 – Option for Further Tenancy
- Clause 17 – Notices
- Clause 18 – new – Guarantee and Indemnity.