Do I need to register my lease?
Whether you need to register your lease depends mostly on its length. A commercial lease of more than 3 years, including any options, should usually be registered on the property’s title so it binds a future owner or lender. In NSW and Queensland, a lease of 3 years or less is usually protected without registration. Other states draw the line differently.
What registration does
Registering a lease records it on the title to the land, in the same register that records owners and mortgages. Anyone who searches the title can see it.
Registration matters most when the landlord sells the property, or a lender takes possession. A registered lease binds the new owner or lender. An unregistered lease longer than the state’s limit may not, and the tenant can lose the premises before the term ends.
An unregistered lease is still binding between the landlord and the tenant. The risk is about third parties.
When a lease should be registered
| Lease length (including options) | Registration |
|---|---|
| 3 years or less | Usually not needed. In NSW and Queensland the lease is protected without it, and WA and Victoria protect a tenant in possession more widely |
| More than 3 years | Usually recommended, and sometimes required by the lease or by state law |
Options usually count towards the 3 years. A 2-year lease with a 2-year option is generally treated as a 4-year lease.
The lease itself often says who must register it and who pays. Some leases require the landlord to register it. Others leave it to the tenant.
Why tenants should care
If you are spending money on a fitout, or have a long lease, registration gives you more security. Without it, a buyer of the property might be able to end your occupation, and your only claim may be against the old landlord.
Lenders to the tenant, and buyers of the tenant’s business, may also ask for the lease to be registered.
Why landlords should care
A registered lease is easier to show to a buyer or lender. In some states, retail leases longer than a set period must be lodged for registration within a set time, and the landlord is responsible for it.
Your lease is longer than 3 years? We prepare and lodge the registration, wherever the property is. Ask about lease registration.
What you need to register a lease
- A lease in a form the registry accepts. Each state has its own lease form. In Queensland, it is the Titles Queensland Form 7, with the lease terms attached. (The lessor disclosure statement under the Retail Shop Leases Act is also numbered Form 7, but it is a different form.) See Form 7 QLD lease.
- A clear description of the premises. For part of a building, this usually means a plan showing the leased area.
- The mortgagee’s consent. If the landlord’s property is mortgaged, the lender’s consent is usually needed, either to register the lease or for the lease to bind the lender.
- Signatures. The landlord and tenant sign, often electronically.
- The registration fee. Each registry charges a fee to lodge the lease.
Getting the mortgagee’s consent is often the slowest step. Start early, ideally when the lease is signed.
How it differs by state
The basic rule is similar in every state, but the details are not.
- NSW. Leases longer than 3 years should be registered with NSW Land Registry Services. The landlord must lodge a retail lease of more than 3 years, including options, for registration within 3 months after the tenant returns it signed. See the 3-month lease registration deadline in NSW.
- Queensland. Leases longer than 3 years should be registered with Titles Queensland using a Form 7. A lease of 3 years or less binds a buyer without registration, but rights to renew beyond 3 years may not.
- Victoria. A tenant in actual occupation has wider protection without registration than in some other states, but registration is still common for long leases.
- WA. An unregistered lease of up to 5 years is protected where the tenant is in possession, but an option to renew may not bind a buyer.
- Other states and territories. Each has its own land titles law, forms and fees.
Registering a variation or assignment
If a registered lease is later varied, assigned or surrendered, those changes usually need to be registered too. Otherwise the title shows the old position, which can cause problems when the property is sold.
Before you sign
Check whether the lease is longer than 3 years including options, who must register it, and who pays. If the landlord’s property is mortgaged, tenants often ask for the lender’s consent to be obtained before they take possession.
Questions
Something else? Enquire online or email us.
Is it illegal not to register a lease?
In most cases, no. An unregistered lease is still binding between the landlord and the tenant. The risk is that it may not bind a new owner or a lender. Some states set a deadline for lodging some retail leases for registration.
Who pays to register the lease?
The lease usually says. Many leases make the tenant pay the registration fees, but it can be negotiated.
Does a lease of part of a building need a plan?
Often, yes. Most registries need the leased area to be clearly identified, which for part of a building usually means a plan.
Need your lease registered?
We prepare the registration documents and lodge your lease with the land registry, online and on a fixed fee.
Sources
General information only, not legal advice. Every lease is different, so get advice on yours before you sign.