In NSW all retail and commercial leases with a term of three (3) years or longer must be registered on the title of the property.
There are many benefits to registering a Lease including:
- Evidence to the public that a Lease Agreement exists between the Tenant and the Landlord. This is important in the event of the sale of the property with prospective buyers made aware of the terms of the Lease. This is also important to preserve the value of the property for investors and the like.
- It provides evidence of what the terms of the Lease are so there is no misunderstanding in the event of a dispute- they are there in black and white.
- Provides peace of mind to both Tenant and Landlord that both their rights have been documented and secured.
It is important to note that before a Lease can be registered it needs to be in what is known as registrable form. If the Lease Agreement is not in the correct form using the prescribed form issued by NSW Land Registry Services the Lease will be knocked back and will not be registered.
There a “pro forma” Lease Agreement that real estate agents and property managers often use which has been drafted by the Real Estate Institute of NSW and sets out the basic terms of a Lease Agreement. It is important to note that these types of Leases are still legally binding and operate in exactly the same way as Leases in registrable form however, they are usually for a term less than three (3) years for the pure fact that they cannot be registered in that format.
If you or someone you know needs advice on either drafting or entering into a retail or commercial Lease contact our team of professionals at Meehans today on 02 4627 3333 and get the terms of the Agreement right from the start.
This article was published on 27/03/24 and the information is valid only to the date of publishing. This article should be considered merely general and non-specific on the subject matter 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.