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The Importance Registering your Commercial Property Lease in Australia

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The Importance Registering your Commercial Property Lease in Australia

In certain states of Australia, it is a legal requirement for a commercial lease to be registered if the term exceeds 3 years (including the option periods).
Even in states that do not specifically require the lease to be registered, we recommend that you do so.

Registration of the lease provides specific protection to both the Landlord and the Tenant.

It provides an official record of your Lease, noted on the register and on your Certificate of Title. This is useful in the event that the Lease is ever disputed or challenged in Court.

Registration of the lease also allows interested persons undertaking a search on the property, such as potential purchasers or lenders, to be made aware of the lease over the land. They will be able to view the registered dealing and gather information on the tenant’s interest in the land. Registered interests may be more desirable to lenders or potential purchasers as they are seen to be more secure than unregistered leases.

The tenant also derives significant benefit from the registration of the lease. In many states, it is the registration of the lease that gives the tenant an indefeasible interest in the land. That is, the tenant’s interest in the land will not be able to be defeated by a subsequent interest in the land, for example: if the leased property is sold, the tenant’s leasehold interest in the land is protected. The purchaser of the land will need to recognise the tenant’s leasehold interest and be bound by the terms of the lease.

Landlords of commercial properties are able to recover the costs of registration from the Tenant.

More detailed information on registering a commercial lease in your State can be found in our professionally drafted Commercial Lease Agreement Kits – click on the links in top menu!

If you need information on Retail Shop Leases click here.
Information on Sublease Agreements for commercial premises.
How to Register a commercial lease in NSW
How to register a Commercial Lease in Queensland
How to register a Commercial Lease in Victoria