---
title: "Letter of advice to a tenant on a proposed commercial or retail lease (NSW)"
url: "https://ailawframework.com/precedents/commercial-property-and-leasing/tenant-lease-review-advice-letter-nsw"
type: "precedent"
site: "AI Law Framework"
id: "a10-tenant-lease-review-advice-letter-nsw"
area_id: "A10"
kind: "letter"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Letter of advice to a tenant on a proposed commercial or retail lease (NSW)

> Advice letter to a tenant on a proposed NSW commercial or retail lease: key terms table, cost of occupancy, risk clauses (make good, relocation, demolition, assignment, guarantees), statutory protections and…

Canonical page: https://ailawframework.com/precedents/commercial-property-and-leasing/tenant-lease-review-advice-letter-nsw  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

Advice letter to a tenant on a proposed NSW commercial or retail lease: key terms table, cost of occupancy, risk clauses (make good, relocation, demolition, assignment, guarantees), statutory protections and recommended amendments.

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Commercial Property & Leasing](https://ailawframework.com/precedents/commercial-property-and-leasing.md)
- Jurisdictions: New South Wales
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 6 authorities it cites, for New South Wales.

## When to use it

Use after reviewing the landlord's draft lease, disclosure statement and heads of agreement and before the tenant signs. Adapt for industrial and office leases where the Retail Leases Act does not apply.

## How AI may be used

AI may extract the key terms table and draft explanations; the lawyer checks each clause reference and decides which risks matter and what to negotiate.

**AI may:**

- Extract rent, reviews, outgoings, term, options, make good, relocation, demolition, assignment and default clauses into the tables, with clause numbers.
- Compare the draft lease against the heads of agreement and disclosure statement and list differences.
- Draft a plain-English summary of each clause for the lawyer to edit.

**AI must not:**

- Must not decide whether the Retail Leases Act applies.
- Must not recommend amendments or rank risks without lawyer review.
- Must not calculate total occupancy cost as advice without the lawyer checking the inputs.

**The lawyer checks:**

- Clause references and figures checked against the final draft.
- Option exercise windows and critical dates confirmed and diarised.
- Guarantee and security terms explained to each guarantor, who has been told to get separate advice.

## Authorities

- [Retail Leases Act 1994 (NSW) ss 11, 11A, 12A (disclosure; undisclosed outgoings)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046#sec.11)
- [Retail Leases Act 1994 (NSW) s 14 (no key money or lease preparation expenses)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046#sec.14)
- [Retail Leases Act 1994 (NSW) s 16 (registration of leases over 3 years including options)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046#sec.16)
- [Retail Leases Act 1994 (NSW) ss 39, 41 (assignment: grounds for refusal and 28-day decision period)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046#sec.39)
- [Retail Leases Act 1994 (NSW) s 44 (lessor to give notice 6 to 12 months before expiry where no option)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046#sec.44)
- [Legal Profession Uniform Law Australian Solicitors' Conduct Rules 2015 r 7.1](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0244#sec.7)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/commercial-property-and-leasing/tenant-lease-review-advice-letter-nsw and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*