Home / Lease disputes
Commercial and retail lease disputes
Most retail lease disputes in Victoria must go to mediation at the Victorian Small Business Commission before VCAT can hear them. We act for tenants and landlords at every step.
Common disputes
- Rent reviews and market rent determinations.
- Outgoings: what is recoverable, estimates, statements and audits.
- Repairs, and the landlord’s obligation to maintain the premises.
- Make-good claims at the end of the lease.
- Relocation and demolition.
- Consent to an assignment or sublease.
- Breach notices, re-entry and termination.
- Return of a security deposit or bank guarantee.
Retail leases: mediation first
Under the Retail Leases Act 2003 (Vic), a retail tenancy dispute can be referred to the Victorian Small Business Commission for mediation. VCAT can hear the dispute only after the Commission certifies in writing that mediation has failed or is unlikely to resolve it. The main exception is an application for an injunction.
Some disputes are outside this regime, including a dispute solely about the payment of rent, and matters a specialist retail valuer can decide, such as a market rent review.
VCAT
VCAT has exclusive jurisdiction over retail tenancy disputes, with limited exceptions, including applications for relief against forfeiture, unconscionable conduct claims and disputes involving guarantors. VCAT can exercise the same powers as the Supreme Court to grant relief against forfeiture.
Costs
In a retail tenancy dispute at VCAT, each party usually bears its own costs. VCAT can order costs only where it is fair to do so because a party conducted the proceeding vexatiously and unnecessarily disadvantaged the other party, or refused to take part in, or withdrew from, mediation at the Small Business Commission.
Breach notices and termination
Before a landlord can re-enter or end a lease for a breach other than non-payment of rent, the Property Law Act 1958 (Vic) requires a notice that specifies the breach, requires it to be remedied if it can be, and requires compensation. The tenant must then have failed to comply within a reasonable time, or within any period of at least 14 days fixed by the lease. A tenant can apply for relief against forfeiture. The requirement cannot be excluded by the lease, and it applies to retail leases.
For landlords, a termination that skips a step can expose you to a damages claim. For tenants, a notice is the time to act, not to wait.
Leases outside the Retail Leases Act
Where a dispute under an office, warehouse or factory lease is heard depends on the claim. We advise on the right forum and on whether mediation or negotiation is the better first step.
First steps
- Gather the lease, any disclosure statements, notices and the correspondence.
- Do not stop paying rent or change the locks without advice.
- Note any deadlines in a notice you have received or sent.
- Talk to us early. Many disputes settle at mediation when both sides are prepared.
How we help
We act for tenants and landlords in negotiation, at Small Business Commission mediation, at VCAT and in the courts. Radek Dajer, principal solicitor, acts personally on each dispute, and briefs counsel where a hearing needs a barrister.
Law referred to
- Retail Leases Act 2003 (Vic) ss 81, 86, 87, 89, 92 and 94A.
- Property Law Act 1958 (Vic) s 146.
This page is general information about Victorian law as at October 2026. It is not legal advice about your lease.
Tell us about your lease
Send the form, or call. We reply within one business day, by phone, email or text, whichever you prefer.
What happens next
- Send the form.
- We reply within one business day.
- We arrange a time to talk, or ask for the lease and any other documents we need first.
Phone: 1800 776 529 (1800 PRO LAW)
Email: info@leaselawyers.com.au
Hours: Monday to Friday, 9 am to 5:30 pm
Office: 435 Nepean Highway, Frankston VIC 3199. We act across Victoria by phone, video and email.