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Leases

WA

This publication guides practitioners through the negotiation and drafting of leases in Western Australia, 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 (WA) - 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 A Brief Explanation of the Transition to E-Conveyancing
    • Item icon 101 Costs Answers
    • 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 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 - WA
      • 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 Retainer instructions - Leases
    • Item icon Conflict of interest check
    • Item icon Initial letter to lessor with costs agreement
    • Item icon Costs agreement - WA
    • Item icon Scope of work - Leases - Acting for the lessor
    • Item icon Standard costs disclosure form for clients - Fees under $3000
    • 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 - Disclosure statements
    • Item icon Disclosure statements
      Building industry energy efficiency The Building Energy Efficiency Disclosure Act 2010 (Cth) imposes disclosure obligations in respect of properties over 2000 square metres.

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    • Item icon Disclosure Statement
  • Folder icon C. If required - Agreement to lease
    • Item icon Agreement to lease
      Prospective lessors and lessees may agree to enter a lease agreement at some time in the future, when particular conditions have been met. Such an agreement may be enforced in equity particularly if partly performed. Laserbem P/L v Gainsville Investments P/L [2004] VSC 62

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    • Item icon Agreement to lease - General
    • Item icon Agreement to lease - Major construction
  • Folder icon D. The lease
    • Item icon The components of a lease
      Lessor's rights under the lease As the lessor generally prepares the lease, it usually creates rights in favour of the lessor by requiring the lessee to covenant to do, or not do, certain things and empowering the lessor to enforce those covenants. A lessee will normally covenant:

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    • Item icon Old system lease first page before standard annexure
    • 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 mortgagee's interests clause
      • Item icon Demolition and relocation 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 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 client with draft lease and general advice
    • Item icon Enclosure - Advice to parties reviewing a lease
    • Item icon Letter to lessee's solicitor submitting lease sublease and invoice for lease preparation costs
    • Item icon Letter to lessee acting for self submitting lease sublease and invoice for lease preparation costs
    • Item icon Letter to lessor 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 as a lease also relates to real estate, rights arising from property law may therefore result in the lease affecting more than just the parties to the original contract. Those property rights may be ...

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    • Folder icon Sublease
      • Item icon Sublease
        A third party may be introduced to the lease by way of a sublease of the lessee’s interest in the land. A sublease is used when the new arrangement is intended to be for a shorter period than the term of the lease. Thus all subleases must terminate at least one day before the headlease. The form of ...

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      • 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
    • Folder icon Assignment/Transfer
      • Item icon Assignment
        An assignment or transfer of lease is used where it is intended to transfer the whole of the lessee’s interest in the property to the new lessee. The assignor, being the current lessee, passes its interest in the property to the assignee, the new lessee. The assignor does not intend to reclaim an ...

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      • Item icon Deed of assignment of lease
      • Item icon Transfer of mortgage charge or freehold lease - T3
      • 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 assignee's solicitor enclosing completed assignment
      • Item icon Letter to assignor's solicitor enclosing completed assignment
      • Item icon Letter to client enclosing completed assignment documents
    • Folder icon Surrender
      • Item icon Termination by surrender, breach and forfeiture
        Surrender of lease

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      • Item icon Letter to lessee's solicitor submitting surrender
      • Item icon Old system 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, extension, renewal and variation
    • Item icon Letter to lessee for CPI rent increase
    • Folder icon Statutory declarations
      • Item icon Statutory declaration - blank - WA
      • 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 Extension
      • Item icon Letter to client enclosing extension of lease for execution
      • Item icon Letter to lessee's solicitor submitting extension of lease
      • Item icon Letter to client enclosing completed extension of lease
    • Folder icon Renewal
      • Item icon Option to renew
        Exercising an option to renew must be done clearly and unequivocally and manifest the intention to enter into a further lease in accordance with the terms of the option. Ballas v Theophilos (No 2) [1957] HCA 90

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      • Item icon Renewal of lease
      • Item icon Letter to lessee's solicitor submitting renewal
      • Item icon Letter to lessee notifying of last date for exercise of option
    • 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. If required - Notices, disputes, interference, breach and forfeiture
    • Item icon Disputes
      Disputes commonly arise in shopping centres in relation to relocation, exclusivity, fit-out requirements, turnover rental, promotion funds and signage. For other shops, shared parking and repairs and maintenance are often the cause of argument. Old air conditioning units that constantly malfunction ...

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    • Item icon Lessee’s right to quiet enjoyment
      The lessee’s ‘right to quiet enjoyment’ of the leased premises is the right to possession of the premises, free of interruption from the lessor or any other person. It is the lessee’s principal right under the lease and is created by the lessor covenanting with the lessee to pass quiet enjoyment. ...

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    • Item icon Termination by surrender, breach and forfeiture
      Surrender of lease

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    • Folder icon Library of notices
      • Item icon Notice of exercise of option
      • 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 Relocation notice
      • Item icon Termination notice for demolition
  • Folder icon H. If required - Mortgagee
    • Item icon Consent of mortgagee to lease
      The lease or agreement to lease is not valid as against any existing mortgagee or other secured party unless prior consent to the registration has been given: s 91 Transfer of Land Act 1893. Unless the proposed lessee ensures the freehold mortgagee’s consent to the lease, the lessee is vulnerable ...

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    • Item icon Letter to mortgagee for consent and production
  • Folder icon I. Finalising the matter
    • Item icon Legal costs
      Normally the lessor arranges for preparation of the lease, preparation costs are borne by the landlord: s 14B Section 9(2)(b)-(c) of the Commercial Tenancy (Retail Shops) Agreements Act 1985 limits the lessee’s liability for preparation costs to the fair and reasonable expenses of the landlord in ...

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    • Item icon Registration
      Leases in Western Australia are not required to be registered, but those which exceed 3 years may be registered. The term of a lease includes any term for which the lease may be extended or renewed at the option of the lessee. Leases of less than 3 years duration cannot be registered. A lease or ...

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    • Item icon Letter to law stationer to register documents
    • Item icon Original lease
      Written leases are customarily prepared in duplicate so both the lessor and lessee hold a copy. The lease forms the basis of the lessee’s right to possess the property and to prove that right he is entitled to hold the original lease.

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    • Item icon Letter to lessee's solicitor with finalised copy document
    • Item icon Letter to client finalising the matter and enclosing account
    • Item icon Example invoice incorporating notification of client's rights - WA
    • 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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