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In Western Australia (WA), registering a commercial lease means recording the land title on a public register to protect proprietary interests. Lease registration practices vary by jurisdiction, and in WA, they are less common than in other states. This article delves into lease registration, explaining the legal framework and its advantages.
The Legal Framework
Registering a commercial lease records the land title on a publicly accessible state register to protect proprietary interests.
For legal advice on retail or commercial leasing, consult an experienced leasing lawyer.
Lease registration varies by jurisdiction and state legislation. In WA, lease registration is less common than in other states. Leases under 3 years cannot be registered, while leases between 3 and 5 years may be registered but are not required. Leases exceeding 3 years, excluding renewal options, can be registered with Landgate, the WA titles office.
In WA, tenants with leases up to 5 years are protected, but this protection does not cover renewal options unless the lease is registered or protected by a caveat.
Since Western Australia does not mandate lease registration, the decision to register depends on your role and interests in the property.
Landlords
Registering a lease on a landlord’s title may seem to have little immediate impact, but it can offer long-term benefits. It adds value to the property by providing a clear history for potential investors. When selling a leased property, buyers often want proof that existing leases are valid and enforceable, making registration a critical step.
Continue reading this article below the formTenants
Registering your lease with land title offices secures your interest in the property and guarantees your title. This means the law officially recognises your interest in the property being leased to you.
If your lease exceeds five years, you should register it to:
- ensure the lease’s validity; and
- prevent potential damage claims from buyers or tenants due to an unenforceable, unregistered lease after the property’s title is transferred.
This guide will help you to understand your options when you purchase a business with leased premises.
Buyers
When a property is sold, any attached leases come into question. Here, any tenants who register their leases secure their title and protect their interests in the property.
Buyers wanting to keep a tenant must ensure the lease is appropriately registered to remain valid after the transfer. Buyers should not rely on tenants’ caveats to preserve leases upon transfer, making registration essential. If registration is not possible before the transfer, obtain a deed from each tenant confirming the lease will continue after the transfer is registered.
Key Takeaways
Although registering a lease is not always mandatory, it is generally recommended to protect the interests of both landlords and tenants. Properly documenting and registering the lease agreement provides both parties greater security and peace of mind and helps avoid costly disputes in the future.
If you require assistance with your lease registration, our experienced leasing lawyers can help as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers who can answer your questions and draft and review your documents. Call us today at 1300 544 755 or visit our membership page.
Frequently Asked Questions
In WA, lease registration is less common than in other states. Leases under 3 years cannot be registered, while leases between 3 and 5 years may be registered but are not required. Leases exceeding 3 years, excluding renewal options, can be registered with Landgate.
Registering a lease means recording the land title on a public register to protect proprietary interests. This can be done through Landgate, the WA titles office.
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