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Leases

SA

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

2 Matter Plans

Overview

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

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.

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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2 Matter Plans Included

  • Item icon ALERTS - Nil
  • Item icon Full Commentary - Leases (SA) - 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 101 Costs Answers
    • Item icon A Brief Explanation of the Transition to E-Conveyancing
    • 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 - 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 Nomination disputes
      • 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 Further information
  • Item icon Overview
    The owner of real estate may create a lesser estate in their property by the grant of a leasehold interest giving the right to the lessee to use and enjoy the property to the exclusion of the entire world, including the owner. The leasehold estate is subject to the reversionary interest of the ...

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  • Folder icon A. Getting the matter underway
    • Item icon Types of lease
      Residential leases A residential lease is governed by the Residential Tenancies Act 1995. It may be in writing, verbal or implied. At the time a lease is entered into, the lessor must give the lessee the prescribed Information Brochure, which summarises the mutual obligations and rights.

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    • 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 - SA
      • Item icon Verification of identity certificate
      • Item icon Client authorisation
      • Item icon Identifier declaration
      • Item icon Identity agent certification
      • Item icon Australian Embassy/High Commission/Consulate certification form
      • Item icon Annexure with verifier statement text
    • Item icon Retainer instructions - Leases
    • Item icon Conflict of interest check
    • Item icon Initial letter to client with costs agreement
    • Item icon Costs agreement - SA
    • Item icon Scope of work - Leases - Acting for the lessor
    • Item icon Conveyancers costs disclosure - SA
    • 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 If required - Agent
      • Item icon Initial letter to agent
    • 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 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. If required - Pre-execution obligations
    • Item icon Documents to be provided during negotiations for retail leases
      Providing a potential lessee with draft lease, a copy of the prescribed Commissioner’s information brochure and a disclosure statement are requirements of the Retail and Commercial Leases Act 1995: s 11 and s 12.

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    • Item icon Retail & Commercial Leasing Guide – SA Small Business Commissioner
    • Item icon Assignor's disclosure statement
    • Item icon Disclosure statement under section 12 of Retail and Commercial Leases Act 1995
  • Folder icon C. If required - Agreement to lease
    • Item icon Agreement to lease
      As equity has shown itself prepared to enforce an agreement to lease, it is often said that an agreement to lease is as enforceable as a lease. This concept has been merged with modern legal concepts to establish the principle that, where it would be unconscionable for either party to resile from ...

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    • Item icon Agreement to lease - General
    • Item icon Agreement to lease - Major construction
  • Folder icon D. Lease
    • Item icon Application of the Retail and Commercial Leases Act
      The Retail and Commercial Leases Act 1995 applies to premises that are a retail shop or a retail shop and adjacent dwelling. A retail shop lease is taken to have been entered into upon the earliest of:

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    • Item icon The components of a lease
      Defining premises Incorrectly defining or describing the premises may give the lessee a right to damages.

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    • Item icon Lease
    • Item icon Lease - Retail - Annexures A and B
    • Item icon Lease - Commercial industrial - Annexures A and B
    • Item icon Lease - Rural - Annexures A and B
    • Folder icon Library of clauses
      • Item icon Covenants protecting lessors and mortgagees interests clause
      • Item icon First right of refusal clause
      • 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 Demolition and relocation clause
      • Item icon Turnover rent clause
    • Item icon Building Energy Efficiency Certificate - Australian Government - Commercial Building Disclosure
    • 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 client with draft lease and general advice
    • Item icon Enclosure - Advice to parties reviewing a lease
    • Item icon Letter to other side's solicitor submitting lease
    • Item icon Letter to other side acting for self submitting lease
    • Item icon Letter to client with leases to sign
  • Folder icon E. If required - Sublease, assignment and surrender
    • Item icon Change of parties
      A lease is fundamentally a contract and the normal rules of privity of contract apply. But a lease also relates to real estate, and property law has by common practice affected more than just the parties to the contract. Rights arising from property law may therefore result in the lease affecting ...

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    • Folder icon Sublease/Underlease
      • Item icon Sublease - Retail - Annexures A and B
      • Item icon Sublease - Commercial industrial - Annexures A and B
      • Item icon Sublease - Rural - Annexures A and B
      • Item icon Letter to other side's solicitor submitting lease sublease
      • Item icon Letter to other side acting for self submitting lease sublease
    • Folder icon Assignment/Transfer
      • Item icon Assignor's disclosure statement
      • Item icon Deed of assignment of lease
      • Item icon Transfer of mortgage, encumbrance or lease
      • Item icon Letter to assignor's solicitor enclosing assignment
      • Item icon Letter to assignee's solicitor enclosing copy of documents
      • Item icon Letter to client enclosing assignment documents for execution
      • Item icon Letter to assignor's solicitor enclosing completed assignment
      • Item icon Letter to assignee's solicitor enclosing completed assignment
      • Item icon Letter to client enclosing completed assignment
    • Folder icon Surrender
      • Item icon Surrender of lease
        Surrender by agreement The parties may agree, or be deemed to have agreed, to terminate the lease by the lessee surrendering, and the lessor accepting the surrender.

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      • Item icon Letter to other side's solicitor submitting surrender
      • Item icon Surrender of lease
      • Item icon Deed of surrender of lease
      • Item icon Letter to client enclosing surrender of lease for execution
      • Item icon Letter to client enclosing registered surrender of lease
  • Folder icon F. If required - CPI, statutory declarations, renewal and variation
    • Item icon Letter to other side for CPI rent increase
    • Folder icon Statutory declarations
      • Item icon Statutory declaration - blank - SA
      • Item icon Clause - Statutory declaration of solicitor - Request to cancel lease on default or expiry
      • Item icon Clause - Statutory declaration of lessor lease expired without option exercise
    • Folder icon Option and renewal
      • Item icon Options to renew
        Options to renew generally require the lessee not to be in default of any covenant as a condition of exercising the right. B S Stillwell & Co P/L v Budget Rent–A-Car System P/L [1990] VicRp 52

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      • Item icon Form of renewal
        A renewal does not present the lessor with an opportunity to review the lease. The parties cannot be changed. Unless otherwise agreed changes are limited to the rent and term of the lease. On renewal the lessor prepares a new lease, which is signed and registered. Alternatively, a deed of renewal ...

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      • Item icon Renewal of lease
      • Item icon Letter to other side's solicitor submitting renewal
    • Folder icon Variation
      • Item icon Deed of variation of lease - Deferral of rental payments
      • Item icon Deed of variation of lease - Deferral of rental payments during COVID-19
  • Folder icon G. Other considerations
    • Item icon Mortgage of lease
      A lease is a proprietary interest in land. Like any other proprietary interest it may be used to secure a loan. The lease may provide that the lessee obtain the lessor’s consent before giving a mortgage over the lease. Failure to do this constitutes a breach of lease. On this topic generally see:

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    • Item icon Consent of mortgagee to lease
      Unless the mortgagee has consented in writing before the lease of mortgaged land is registered, it is not valid and binding against the mortgagee: s 118 of the Real Property Act. Unless the proposed lessee ensures the freehold mortgagee’s consent to the lease, the lessee is vulnerable to losing ...

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  • Folder icon H. If required - Notices, disputes, breach, interference and forfeiture
    • Item icon Disputes, interference, breach and forfeiture
      Disputes

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    • Folder icon Library of notices
      • Item icon Notice of exercise of option of renewal of lease
      • Item icon Notice to remedy breach of lease
      • Item icon Notice of termination of periodic tenancy
      • Item icon Notice of termination and to quit
      • Item icon Demolition notice
      • Item icon Termination notice following demolition notice
      • Item icon Relocation notice
      • Item icon Termination notice following relocation notice
  • Folder icon I. If required - Mortgagee
    • Item icon Mortgage of lease
      A lease is a proprietary interest in land. Like any other proprietary interest it may be used to secure a loan. The lease may provide that the lessee obtain the lessor’s consent before giving a mortgage over the lease. Failure to do this constitutes a breach of lease. On this topic generally see:

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    • Item icon Consent of mortgagee to lease
      Unless the mortgagee has consented in writing before the lease of mortgaged land is registered, it is not valid and binding against the mortgagee: s 118 of the Real Property Act. Unless the proposed lessee ensures the freehold mortgagee’s consent to the lease, the lessee is vulnerable to losing ...

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    • Item icon Letter to mortgagee for consent and production
  • Folder icon J. Finalising the matter
    • Item icon Letter to law stationer to register documents
    • Folder icon If required - Bond
      • Item icon Letter to Commissioner of Consumer and Business Services lodging bond
    • Item icon Letter to other side's solicitor with client's copy of lease
    • Item icon Letter to client enclosing final lease document
    • Item icon Letter to client finalising the matter and enclosing account
    • Item icon Example invoice incorporating notification of client's rights - SA
    • 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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