QLD Commercial Lease - Lessor Charging Interest on Outgoings?

Discussion in 'Commercial Law Forum' started by Mario Grimaldi, 7 June 2018.

  1. Mario Grimaldi

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    Under a standard retail commercial lease, can a lessor charge the lessee interest charges to do with monies borrowed for insurance cover in outgoings?
     
  2. Rob Legat - SBPL

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    There's no such thing as a 'standard' retail commercial lease.

    But, no. The lessor cannot charge the lessee the interest charges for the amount borrowed for the insurance cover.

    The Retail Shop Leases Act is prescriptive in what can, and cannot, be charged. Lessors are permitted to charge lessees for outgoings, but the Act defines what outgoings are in section 7. The section provides:

    "(3) However, lessor's "outgoings" do not include -
    ...
    (g) payment of interest and charges on amounts borrowed by the lessor..
    ."
     
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  3. Clancy

    Clancy Well-Known Member

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    What about charging interest for the period of time that the outgoings payment was overdue?
     
  4. Rob Legat - SBPL

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    That’s allowable, as long as the rate or the method of calculating the rate is stipulated.
     
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