I’m a Tenant. What Happens if There Is Incorrect Information in the Disclosure Statement?

A disclosure statement is a summary of the commercial terms of a lease. It provides information on the:

• rent;
• outgoings; 
• floor area; and
• turnover rent. 

Having a disclosure statement is a regulatory requirement for all retail leases in Australia. As a tenant, it is crucial to ensure that the information within the disclosure statement is accurate. This article will explain what you need to do if you discover a mistake in your disclosure statement to ensure you have accurate information about the property you are looking to rent.

State Specific Tenant’s Rights

All retail leases in Australia are governed by state-specific retail legislation. This means that your rights in these circumstances depend on which state the property is located in. 

Although the specifics vary from state to state, you will have the right to terminate your lease early if you discover that the disclosure statement is incorrect. However, you will be prevented from doing this if the landlord acted honestly and you have not been placed at a disadvantage due to the incorrect information. If you are able to terminate the lease, the landlord will also have to compensate you for any damage or loss you have suffered.

Dispute Resolution

If there are any disputes between you and your landlord due to incorrect information in the disclosure statement, you will usually need to handle this per the dispute resolution procedures set out in state legislation. 

While this process will vary on a state by state basis, it typically will involve mediation or a similar process where a third party is appointed to assist in finding a solution between you and your landlord.

Misleading and Deceptive Conduct

In some circumstances, a landlord may provide incorrect information in the disclosure statement to attempt to mislead or deceive you. This kind of behaviour is prohibited under retail leasing legislation. However, the specifics of the regulations surrounding this kind of conduct varied between states and territories.

Key Takeaways

If your landlord has provided you with a disclosure statement which you find has incorrect or missing information, you should refer to your state or territory retail legislation to find out what you can do. Most of the time, if you signed your lease less than six months ago, you will be able to exit the lease and claim compensation from your landlord for any loss they have caused you. If you have any questions about disclosure statements and your rights as a tenant, contact LegalVision’s leasing lawyers on 1300 544 755 or fill out the form on this page.