Legal Project Management Plan & Checklist
Purpose of this Guide: Use this fork when an existing retail tenant in Victoria wants to exercise an option to renew their lease. This fork applies when the initial lease term is approaching expiry and the tenant wishes to continue occupying the premises for the option term. Open this fork when the PMS triggers the option exercise window alert, or when the client contacts you about renewal. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Jurisdiction: Victoria. Option exercise under the Retail Leases Act 2003 (VIC) s28. The landlord must provide a renewal disclosure statement under Schedule 3 of the Retail Leases Regulations 2023. After the tenant exercises the option, a 14-day cooling-off period applies under s28B.
Confirm client's intention to renew and verify the exercise window.
The Process at a Glance: Confirm the landlord has provided the mandatory s28 notice (including the first-year renewal rent and information about cooling-off rights). Check whether the landlord's proposed renewal rent is acceptable. If the client wishes to proceed, serve a formal written notice exercising the option before the deadline. A 14-day cooling-off period then applies during which the tenant may withdraw if they have not requested an early rent review. Once the cooling-off period expires, negotiate the formal renewal lease documentation with the landlord's solicitor. Ensure the new Disclosure Statement (Schedule 3) is provided and reviewed. Verify current guidelines on the official Victorian Legislation. Access services via the Victorian Courts.
Key Legislation and Case Law: Retail Leases Act 2003 (VIC) - s28 (landlord notice obligation, 3 months before last exercise date, including first year rent and cooling-off information); s28A (tenant may request early market rent review in lieu of accepting landlord's proposed rent); s28B (14-day cooling-off period after option exercise - tenant may withdraw unless they have requested an early rent review); Schedule 3 Retail Leases Regulations 2023 (renewal disclosure form). Dispute pathway: If the parties cannot agree on renewal rent, the VSBC provides mandatory mediation before any VCAT referral.
* Disclaimer: We're nobody's lawyer, because we aren't lawyers. You are, so you know better than to take legal advice from an app. We also aren't accountants or dog trainers - just digital spirit guides taking zero liability for any of this. This site exists to gather the collective knowledge of practitioners like you. Verify everything and submit your feedback on the Retail Lease (Tenant) - Option Exercise and Lease Renewal matter plan to improve the playbook. THIS IS NOT LEGAL ADVICE, it's a request for input.
This legal matter plan provides a structured workflow for REAL_ESTATE cases, outlining the standard TRANSACTIONAL process. Utilize these tracking templates to manage your legal cases efficiently.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Strict compliance rule: Laybutt v Amoco Australia Pty Ltd (1974) 132 CLR 57 - the High Court held that an option holder must exercise the option in strict conformity with the prescribed mode and within the time specified. Any deviation - even trivial - will render the exercise ineffective.
Re-entry risk: if the option is not exercised in time, the lease expires at the end of the initial term. The landlord is immediately free to offer the premises to a new tenant. There is no right of re-entry or compensation for the outgoing tenant. The tenant has no equitable rights to remain in possession (contrast with a residential tenant's statutory holdover rights).
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.
Validly exercise the option within the permitted window.
Coordinate the collection and review of all financial documentation required for disclosure, including statements, valuations, and supporting schedules as mandated by the rules.
Conduct a thorough review of all filed materials to ensure compliance with court requirements, verify service obligations have been met, and prepare for the next procedural milestone.
Assess the strategic considerations for interim applications, prepare supporting evidence, and draft the necessary documentation for urgent or time-sensitive relief sought.
Re-entry risk: if the option is not exercised in time, the option is lost and the landlord can offer the premises to a new tenant immediately. There is no equitable right to extend the option window even if the failure was inadvertent. Practitioners who fail to serve a valid exercise notice before the deadline face professional negligence exposure.
Complete the renewal documentation and commence the new lease term.
Verify all prerequisite documentation has been obtained, cross-reference against the statutory requirements for this matter type, and confirm compliance with practice direction protocols.
Prepare the relevant forms and supporting materials required under the applicable legislation, ensuring all mandatory fields are completed and all attachments are properly certified.
Draft and dispatch formal correspondence addressing the procedural requirements at this stage, including any required notices, requests for information, or proposals for resolution.