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Leases

QLD

This publication guides practitioners through the negotiation and drafting of leases in Queensland, including provisions for subleasing, assignment, and termination.

4 Matter Plans

Overview

The Leases commentaries cover the key practical issues of leasing, including negotiation, drafting, registration, renewals, assignments, subleases, termination, common disputes, and remedies.

The Retirement Villages matter plan covers standard contracts and mandatory documents, duties, taxes and rates, commencing and ending a residency, and dispute resolution.

The Reference materials folder includes guidance on electronic signing and remote witnessing, and the Getting the matter underway folder contains essential compliance and client engagement documents. The comprehensive Retainer Instructions ensure that all necessary information is gathered from the client at the outset of the matter.

Also included is 1001 Conveyancing Answers (QLD), which is a useful reference guide.

Precedents in this publication include:

  • Agreements to lease;
  • Deeds of lease;
  • Library of additional clauses for the lease;
  • Library of notices for various situations;
  • Deeds of variation, amendment and assignment.
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4 Matter Plans Included

  • Item icon ALERT - The Property Law Act 2023 replaced the Property Law Act 1974 from 1 August 2025. Part 9 of the Act deals with leases. This commentary is up to date for the new Act.
    The Property Law Act 2023 replaced the Property Law Act 1974 from 1 August 2025. Part 9 of the Act deals with leases. This commentary is up to date for the new Act.

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  • Item icon Full Commentary - Leases (QLD) - Acting for the Lessor
  • Folder icon Reference materials
    • Item icon AI Prompts
      An AI prompt defines a specific task for AI to perform, like drafting a particular document, and provides clear instructions on how to execute that task. The goal is for the AI to quickly create a useful first draft of a document, which the user verifies and refines into a final version, ultimately ...

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    • Item icon Looking to the Future
    • Item icon Electronic Signing and Witnessing
    • Item icon 1001 Conveyancing Answers (QLD)
    • Item icon 101 Costs Answers
    • Item icon A Brief Explanation of the Transition to E-Conveyancing
    • Item icon Further information
    • Folder icon Papers and articles - Conveyancing and property
      • Item icon Plain language – A paper by the Hon. Michael Kirby AC CMG
      • Item icon Adjustment for cladding agreements
      • Item icon Adjustment of rates
      • Item icon Adjustment of rent
      • Item icon Adjustments
      • Item icon Adjustments and land tax in 2024
      • Item icon Agreement to lease
      • Item icon Avoiding off the plan - Quality defects
      • Item icon Avoiding off the plan - Statutory rights
      • Item icon Avoiding off the plan contracts - A sequel
      • Item icon Bits and pieces
      • Item icon Breach of contract - Penalty interest
      • Item icon Breach of contract – Reasonably foreseeable loss
      • Item icon Breach of section 32
      • Item icon Caveats (Vic)
      • Item icon Caveats - Forcible removal 1
      • Item icon Caveats - Forcible removal 2
      • Item icon Caveats - Insufficient proceeds from settlement
      • Item icon Caveats - Tenant’s caveats and the sale or mortgaging of freehold property
      • Item icon Caveats - Use them!
      • Item icon Costs and caveats
      • Item icon Certificates of title in electronic conveyancing
      • Item icon Clayton's settlement
      • Item icon Compensation for loss
      • Item icon Contamination
      • Item icon Contract – Australian Consumer Law – Impact on residential conveyancing
      • Item icon Contract - Avoiding off the plan contracts 1
      • Item icon Contract - Avoiding off the plan contracts 2
      • Item icon Contract - Changing the contract by special condition
      • Item icon Contract - Electronic conveyancing special condition
      • Item icon Contract - Electronic signatures
      • Item icon Contract - Entire contract
      • Item icon Contract - Guarantee
      • Item icon Contract - Is there a contract?
      • Item icon Contract - Misleading contracts
      • Item icon Contract - New contract
      • Item icon Contract - New contract - Contract of sale tweaked
      • Item icon Contract - New contract - Happy anniversary
      • Item icon Contract - New special conditions for contract of sale
      • Item icon Contract - Nomination
      • Item icon Contract - Terms contracts 1
      • Item icon Contract - Terms contracts 2
      • Item icon Contract - Terms contracts 3
      • Item icon Contract - Trust transactions
      • Item icon Cooling off
      • Item icon Co-owners - Joint tenancy or tenancy in common
      • Item icon Co-owners and easements – Two topics
      • Item icon Covenant - Removal of covenants 1
      • Item icon Covenant - Removal of covenants 2
      • Item icon Defects - Essential safety measures - Part 1
      • Item icon Defects - Essential safety measures - Part 2
      • Item icon Defects - Occupancy and insurance certificates
      • Item icon Deposit - Deposit release - 2010
      • Item icon Deposit - Deposit release - 2017
      • Item icon Deposit - Deposit release - A solution?
      • Item icon Deposit - Deposit release - Tough decisions?
      • Item icon Deposit - Deposit release - Why take the risk?
      • Item icon Deposit - Forfeiture of deposit
      • Item icon De-regulated Contract of Sale of Land
      • Item icon Deterioration - A matter of degree
      • Item icon Deterioration - General condition 24 has teeth
      • Item icon Deterioration - State of the premises
      • Item icon Disclosure of death
      • Item icon Estate agent - Agent beware
      • Item icon Estate agent’s commission – Money for nothing
      • Item icon Foreign residents capital gains tax withholding
      • Item icon GST and mistake
      • Item icon GST - Margin scheme
      • Item icon GST withholding
      • Item icon Inadvertent disclosure
      • Item icon Inspection - Right to inspect
      • Item icon Land tax - Part 1
      • Item icon Land tax - Part 2
      • Item icon Land transfer duty benefits
      • Item icon Lease - Abandoned goods
      • Item icon Lease - Landlords beware
      • Item icon Lease - Retail lease
      • Item icon Lease - Retail lease - Predominant use
      • Item icon Lease - Retail lease cost
      • Item icon Lost trust deeds
      • Item icon Material facts
      • Item icon Measurements
      • Item icon Mortgage stress
      • Item icon Nomination
      • Item icon Nomination and the Australian Consumer Law
      • Item icon Notice of action
      • Item icon Notices - Liability for notices
      • Item icon Off the plan duty concessions
      • Item icon Owner-builder insurance
      • Item icon Owner-builders
      • Item icon Owners corporations
      • Item icon Personal Property Securities Act
      • Item icon Planning certificates - Accuracy
      • Item icon Power of attorney
      • Item icon Priority notice
      • Item icon Property - Rules and undertakings
      • Item icon Rescission - Consequences of rescission 1
      • Item icon Rescission - Consequences of rescission 2
      • Item icon Rescission - Costs on rescission
      • Item icon Retail lease outgoings
      • Item icon Retail premises
      • Item icon Retail repairs
      • Item icon Retail repairs revisited
      • Item icon Sale of land amendments
      • Item icon Scary short-stays
      • Item icon Self managed superannuation funds
      • Item icon Septic situation
      • Item icon Sheriff - Enforcement procedure
      • Item icon Sheriff's sale - Part 1
      • Item icon Sheriff's sale - Part 2
      • Item icon Solicitor - Lawyers selling real estate
      • Item icon Solicitor – Executor’s commission 1 – Horns of a dilemma
      • Item icon Solicitor - Executor's commission 2 - A fiduciary duty
      • Item icon Solicitor – Liability for commercial advice
      • Item icon Stamp duty concessions
      • Item icon Subdivision - Off the plan sales
      • Item icon Subdivision - Off the plan sales - Best endeavours - Part 1
      • Item icon Subdivision - Off the plan sales - Best endeavours - Part 2
      • Item icon Subdivision - Off the plan sales - Materially affects
      • Item icon Subdivision - Off the plan sales - Sunset conditions
      • Item icon Subdivision - Owners corporation certificates
      • Item icon Subdivision - Owners corporation repairs
      • Item icon Subdivision - Owners corporations
      • Item icon Subject to contract
      • Item icon Sunset clause – Vendor ending a contract – Purchaser’s consent or court order required
      • Item icon Time of the essence
      • Item icon To be or not to Airbnb
      • Item icon Trade practices – Fair trading in property transactions
      • Item icon Vendor statement - Aboriginal Heritage Act
      • Item icon Vendor statement - Breach of section 32
      • Item icon Vendor statement - Growth areas infrastructure contribution
      • Item icon Vendor statement - Honest and reasonable
      • Item icon Vendor statement and leases
      • Item icon Vendor statement review
      • Item icon Vendor statements and the Australian Consumer Law
      • Item icon Vendor's duty to co-operate
      • Item icon Wills and estates - Death in the house
  • Item icon Overview
    The owner of real estate can create a lesser estate in their property by granting a leasehold interest in writing, giving the lessee the right to use and enjoy the property to the exclusion of all others, including the owner. A leasehold estate is subject to the owner's reversionary interest, being ...

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  • Item icon Summary of the process
    The usual steps in acting on a commercial lease are:

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  • Folder icon A. Getting the matter underway
    • Item icon File cover sheet - Leases
    • Item icon To do list - Leases
    • Item icon First steps
    • Item icon Client details and verifying identity
    • Item icon Verification of identity in electronic conveyancing transactions
    • Folder icon Library of identity and authorisation forms - QLD
      • Item icon Verification of identity certificate
      • Item icon Client authorisation
      • Item icon Identifier declaration
      • Item icon Identity - witnessing certification - outside Australia
      • Item icon Australian Embassy/High Commission/Consulate certification form
      • Item icon Identity agent certification
    • Item icon Retainer instructions - Leases
    • Item icon Conflict of interest check
    • Item icon Initial letter to lessor with costs disclosure
    • Item icon Initial letter to client enclosing costs agreement
    • Item icon Costs agreement - QLD
    • Item icon Scope of work - Leases - Acting for the lessor
    • Item icon Abbreviated costs disclosure - Costs under $3000
    • Folder icon If required - Agent
      • Item icon Initial letter to agent
    • Item icon Time and costs estimates
    • Folder icon If required - Updating costs disclosure
      • Item icon Letter to client updating costs disclosure
      • Item icon Charge securing costs
      • Item icon Guarantee securing costs
      • Folder icon Costs disclosure before settlement in litigation matters
        • Item icon Letter to client - Costs disclosure before settlement - NSW, VIC, and WA
        • Item icon Letter to client - Costs disclosure before settlement - QLD, SA, TAS, ACT, and NT
    • Folder icon General deeds, agreements, execution clauses, and statutory declarations
      • Item icon Deeds and Agreements
      • Folder icon Deeds
        • Item icon Deed for general use
        • Item icon Deed of guarantee
        • Item icon Deed of release
        • Item icon Confidentiality deed
        • Item icon General deed of indemnity
        • Item icon Deed of assignment of agreement
        • Item icon Deed of gift
        • Folder icon Library of standard clauses for deeds
          • Item icon Amendment
          • Item icon Confidentiality for defined information - All parties
          • Item icon Confidentiality for defined information - One party
          • Item icon Confidentiality for terms of deed - All parties
          • Item icon Confidentiality for terms of deed - One party
          • Item icon Costs
          • Item icon Counterparts
          • Item icon Dispute resolution
          • Item icon Events beyond control
          • Item icon Governing law and jurisdiction
          • Item icon Interpretation
          • Item icon No assignment
          • Item icon Notices
          • Item icon Severance
          • Item icon Waiver
          • Item icon Whole agreement
      • Folder icon Agreements
        • Item icon Agreement for general use
        • Item icon Heads of agreement
        • Item icon Non-disclosure agreement - Formal
        • Item icon Non-disclosure agreement - Informal
        • Folder icon Library of standard clauses for agreements
          • Item icon Amendment
          • Item icon Confidentiality for defined information - All parties
          • Item icon Confidentiality for defined information - One party
          • Item icon Confidentiality for terms of agreement - All parties
          • Item icon Confidentiality for terms of agreement - One party
          • Item icon Costs
          • Item icon Counterparts
          • Item icon Dispute resolution
          • Item icon Events beyond control
          • Item icon Governing law and jurisdiction
          • Item icon Interpretation
          • Item icon No assignment
          • Item icon Notices
          • Item icon Severance
          • Item icon Waiver
          • Item icon Whole agreement
      • Folder icon Execution clauses
        • Folder icon Library of execution clauses for agreements
          • Item icon Attorney
          • Item icon Authorised officer
          • Item icon Company
          • Item icon Company - Sole director
          • Item icon Individual
          • Item icon Individual - No witness
        • Folder icon Library of execution clauses for deeds
          • Item icon Attorney
          • Item icon Authorised officer
          • Item icon Company
          • Item icon Company - Sole director
          • Item icon Individual
      • Folder icon Statutory declarations
        • Item icon Commonwealth statutory declaration
        • Item icon Statutory declaration - blank - ACT
        • Item icon Statutory declaration - blank - NSW
        • Item icon Statutory declaration - blank - VIC
        • Item icon Statutory declaration - blank - QLD
        • Item icon Statutory declaration - blank - TAS
        • Item icon Statutory declaration - blank - SA
        • Item icon Statutory declaration - blank - WA
        • Item icon Statutory declaration - blank - NT
        • Item icon Standard annexure note for documents
      • Item icon Standard annexure note for documents
  • Folder icon B. Initial considerations
    • Item icon Lease or licence
      A critical first step for a practitioner is to ensure the parties intend to create a leasehold interest rather than a licence. A lease is a proprietary right and has the protection of the law. The lessee has the right to exclusive possession until it expires, or until an essential term of the lease ...

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    • Item icon Formality and enforceability
      In writing For a lease to be registered, s 65 of the Land Title Act 1994 requires it to be in writing, signed, and include a sufficient description of the lot to be leased.

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    • Folder icon If required - Mortgagee
      • Item icon Consent of mortgagee to lease
      • Item icon Letter to mortgagee for consent and production
      • Item icon General consent
    • Item icon Retail leases
      The Retail Shop Leases Act 1994 applies to all retail shop leases and creates certain disclosure obligations ‒ see Disclosure statements. Retail shop is defined in s 5B as premises that are situated in a retail shopping centre or used wholly or predominately for the carrying on of a retail ...

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    • Item icon Competition and Consumer Act
      The Competition and Consumer Act 2010 (Cth) contains prohibitions on anti-competitive behaviour, misleading conduct, and unfair conduct. It applies to lessors, shopping centre owners, and anyone involved in the property industry. While it is less common to rely on the Competition and Consumer Act ...

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    • Item icon Personal Property Securities Act
      Although dealings relating to land cannot be registered on the Personal Property Securities Register (PPSR), the implications of the Personal Property Securities Act 2009 (Cth) (PPSA) for lessors and lessees and their personal property need to be carefully considered when entering into a new lease ...

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    • Item icon Disclosure statements
      For any retail lease the Retail Shop Leases Act 1994 provides that certain disclosures must be made.

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    • Item icon Disclosure statement by the lessor
    • Item icon Lessee disclosure statement
    • Item icon Annual estimate of outgoings year ending
    • Item icon Legal advice report
    • Item icon Financial advice report
    • Item icon Lessee waiver - New lease
    • Folder icon If required - Assignment disclosure statements
      • Item icon Assignee disclosure statement
      • Item icon Assignor disclosure statement
      • Item icon Assignee disclosure statement to lessor
      • Item icon Lessee waiver - Assignment
  • Folder icon C. The lease
    • Item icon Agreements to lease
      An agreement to lease, or an offer to lease, is a document recording the parties' intention to enter into a lease. This is often used when the premises are being bult or renovated, and the commencement date for the lease cannot yet be confirmed. An agreement to lease can be expressed to be binding ...

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    • Item icon Reference schedule - Commercial tenancy agreement
    • Folder icon If required - Agreement to lease
      • Item icon Agreement to lease - General
      • Item icon Agreement to lease - Major construction
      • Item icon Heads of agreement - Offer to lease - Concise
    • Item icon Form of lease
      There is no prescribed form for commercial leases, although standard terms are implied by the Property Law Act 2023, and there are specific requirements for tenancies that fall under the Retail Shop Leases Act 1994.

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    • Item icon Standard terms
      Schedule 1 of the Property Law Act 2023 sets out the following standard terms that are implied into every lease of land, unless the parties agree otherwise.

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    • Item icon Lease or sub lease
    • Item icon Schedule
    • Item icon Schedule - Deed of lease - Retail
    • Item icon Schedule - Deed of lease - Commercial Industrial
    • Item icon Schedule - Deed of lease - Rural
    • Item icon Additional terms
      Defining premises It is critical to both parties that the lease correctly describe the premises subject to the tenancy.

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    • Folder icon Library of clauses
      • Item icon Demolition and relocation clause
      • Item icon First right of refusal clause
      • Item icon General consent
      • Item icon Liquor licence - Application clause
      • Item icon Liquor licence - Lessor's consent clause
      • Item icon Liquor licence - Transfer clause
      • Item icon Option to purchase clause
      • Item icon Turnover rent clause
    • Folder icon Other leases and agreements
      • Item icon Deed of lease of business
      • Item icon Car parking licence agreement
      • Item icon Medical centre licence agreement
      • Item icon Short licence agreement of business and premises
    • Item icon Letter to lessor with draft lease and general advice
    • Item icon Enclosure - Advice to parties reviewing a lease
    • Item icon Letter to lessor with leases to sign
    • Item icon Letter to lessee's solicitor submitting lease or sublease
    • Item icon Letter to lessee's solicitor submitting lease or sublease - Retail
    • Item icon Letter to lessee acting for self submitting lease sublease
  • Folder icon D. If required - Sublease, assignment, transfer, and surrender
    • Item icon Sublease or assignment
      If a lessee is unwilling or unable to continue with their lease obligations, and if the lease allows for it, the lessee can sublet or assign the lease to another lessee. By subletting or assigning the lease, the lessee avoids the financial consequences of ending the lease early or falling into ...

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    • Folder icon Sublease
      • Item icon Sublease
        A sublease is a contract between the lessee and a new lessee, also called a sublessee. The sublease must have a termination date that is earlier than the termination date in the original lease, called the head lease. The sublease mirrors the terms of the head lease except for the named parties and ...

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      • Item icon Lease or sub lease
      • Item icon Schedule - Deed of sublease - Retail
      • Item icon Schedule - Deed of sublease - Commercial Industrial
      • Item icon Schedule - Deed of sublease - Rural
    • Folder icon Assignment and transfer
      • Item icon Assignment
        An assignment acts as a transfer of the lease, transferring all the lessee's interest in the premises under the lease to a new lessee. The original lessee is the assignor, and the proposed new lessee is the assignee. The assignor cannot reclaim their interest in the premises.

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      • Item icon Assignment – Retail tenancy
      • Item icon Letter to lessee's solicitor submitting assignment
      • Item icon Deed of assignment of lease
      • Item icon General consent
      • Item icon Assignee disclosure statement to lessor
      • Item icon Transfer of ownership of the freehold
        A lease does not negate the property owner's right to sell the property. The right of a lessor to reclaim possession of their leased property either when the lease terminates or if the lessee is in default is known as the right of reversion, or the reversionary interest.

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      • Item icon Transfer
    • Folder icon Surrender
      • Item icon Surrender of lease
        Surrender by agreement The parties can agree, or be deemed to have agreed, to terminate the lease by the lessee surrendering, and the lessor accepting.

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      • Item icon Letter to lessee's solicitor submitting surrender
      • Item icon Surrender of freehold lease or Land Act sublease
      • Item icon Deed of surrender of lease
    • Folder icon If required - Rent reviews, statutory declarations and amendment
      • Item icon Letter to lessee for CPI rent increase
      • Folder icon Statutory declarations
        • Item icon Statutory Declaration
        • Item icon Clause - Statutory declaration of solicitor - Request to cancel lease
        • Item icon Clause - Statutory declaration of lessor lease expired without option exercise
      • Folder icon Amendment
        • Item icon Letter to lessee's solicitor submitting amendment
        • Item icon Amendment with blank schedule
        • Item icon Deed of amendment - Unregistered lease
        • Item icon Deed of variation of lease - Deferral of rental payments
        • Item icon Deed of variation of lease - Extension of unregistered lease
  • Folder icon E. Notices, disputes, breaches, and forfeiture
    • Item icon Disputes, breach, and forfeiture
      Disputes For retail leases within shopping centres, disputes commonly concern:

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    • Item icon Breaches
      The consequences of a breach of a lease depend on the terms of the agreement between the parties. The lease may have detailed and specific clauses relating to breach and its consequences. Generally, a breach that is not remedied after notice is given will entitle the other party to bring the lease ...

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    • Item icon Forfeiture
      Forfeiture occurs when a lessor relies on a breach to treat the lessee's rights under the lease as forfeit. This entitles the lessor to re-take possession of the premises and terminate the tenancy. To prevent abuse of this power, statutory restrictions are placed on forfeiture. Part 9 ...

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    • Item icon Relief against forfeiture
      Until the lessor obtains an order for possession from a court, the lessee or a designated person can apply under s 160 of the Property Law Act 2023 for relief against forfeiture. The court has a wide discretion to grant such relief: s 162. A court will generally grant relief against ...

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    • Item icon Termination
      If the lease is terminated by the lessee for breach by the lessor, then the lessee will be entitled to damages. However, such situations are rare, as the lessee would ordinarily be satisfied to be free of the lease, or else have sought specific performance. If the lease is terminated by the lessor ...

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    • Item icon Abandoned goods
      If a lessee vacates the premises, leaving goods on the premises, ownership of those goods remains with the lessee and the lessor has no claim to ownership of them. If the lessee requests access to the premises for the purposes of removing the goods, the lessor will be liable to an action for ...

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    • Folder icon Library of notices
      • Item icon Notice of exercise of option
      • Item icon Notice to remedy breach of covenant
      • Item icon Breach notice - intention to refuse to renew or extend the term of or sell the reversion of a lease
      • Item icon Notice to terminate lease
      • Item icon Notice of termination of periodic tenancy
      • Item icon Relocation notice
      • Item icon Termination notice following relocation notice
      • Item icon Termination notice for demolition
  • Folder icon F. Finalising the matter
    • Item icon Costs and transfer duty
      Generally It is usual for the lessor to arrange for the preparation of the lease. As a result, it is normal for the lease to provide that the lessee will be responsible to pay the lessor’s legal cost. However, these arrangements are negotiable in all circumstances and prohibited by statute for ...

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    • Item icon Registration of lease
      Leases for terms, including option periods, that exceed 3 years should be registered to protect the lessee's interest. The registered copy of the lease is, in effect, the lessee's title to its estate and interest in the land. Under the Torrens system, title to a lease estate is created by ...

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    • Item icon Original lease
      Leases are often prepared in duplicate so the lessor and lessee will each have one. The lease is the basis of the lessee’s right to possess the property, and is part of the lessee’s title. On that basis, if there is only one original the lessor is entitled to retain it.

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    • Item icon Letter to lessee's solicitor with lessee's copy of the document
    • Item icon Letter to lessor finalising the matter and enclosing lessor's copy of the document
    • Item icon Example invoice incorporating notification of client's rights - QLD
    • Item icon Invoice recital - Leases
    • Item icon Closing the file
    • Item icon File closing checklist
  • Item icon Comments and suggestions for By Lawyers

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