In New South Wales (NSW) there is legislation which requires Lessors to register leases exceeding three years, and there are consequences for failing to do so.
The Real Property Act 1900 (NSW) requires leases for a term exceeding three years (including options to renew) to be registered to pass an estate or interest in land to the Lessee.
Registration ensures the Lease is enforceable not only between the Lessor and the Lessee but also against third parties, such as purchasers or mortgagees. An unregistered lease may be binding between the original parties but is vulnerable if the property is sold or mortgaged.
Once registered, the Lease becomes part of the public title, and the Lessee’s interest is protected from subsequent dealings (except in cases of fraud).
Under the Torrens system (which is the system of title used in NSW), a registered lease takes priority over later unregistered interests. If a lease is not registered, a subsequent registered interest (e.g., a mortgage or sale) may override the Lessee’s rights.
As referred to above, registering a lease in NSW is essential for leases exceeding three years and highly advisable for all leases. It ensures legal protection, priority, and enforceability against third parties, and provides certainty and security for both Lessors and Lessees. Failure to register exposes parties to significant legal and practical risks.
If you need assistance with either drafting a lease or reviewing the terms of a lease please contact our experienced team of property lawyers today on 02 4627 3333.
It is important that you obtain the right advice before signing the lease. Once the lease is signed and registered it may be too late.
This article was published on 10/10/25 and the information is valid as at the date of publishing. This article is general in nature and is not and should not be considered or relied on as legal advice. Meehans Solicitors is not responsible in the event this information is relied upon by the reader in the absence of specific legal advice.
