Why Should a Lease be Registered? Registration in Each State and Territory

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Table of Contents

• Why is Lease Registration Important?
• How Do I Register My Lease? 
• Key Takeaways
• Frequently Asked Questions

Regulations in different states and territories govern retail and commercial lease registration. Most states and territories allow the registration of a retail and commercial lease that exceeds a three-year term. The relevant Acts in each state protect short-term leases, whether they are registered or unregistered. Some states mandate registration, while others have no such requirement. For instance, in Victoria, the legislation protects all lessees with a valid lease when they are in possession of the property. Consequently, leases there are rarely registered, regardless of their length. This article outlines the importance of registering your lease and the specific requirements for registration in each state.

Why is Lease Registration Important?

Many people fail to grasp the importance of registering a lease. It is easy to assume that once the relevant parties have signed the lease, no further action is required. However, this assumption is incorrect, as you can and should subsequently register a lease. Registering the lease offers the tenant the most significant benefit. Lease registration grants the tenant a registered interest in the property title, safeguarding against any events that might impact the property’s ownership.

This usually arises in two circumstances, if the landlord:

1. sells the property and the lease is not registered, then the new owner (who becomes the new landlord) is not required to honour the lease; or
2. declares bankruptcy, and the lease is not registered, then the agreement between the landlord and creditors (like a bank) takes priority. This means the bank may seize the property and disregard the lease, potentially leading to eviction of the tenant.

In Victoria, the law protects all tenants when they are in possession of the property and have a valid lease. This is regardless of whether the lease is registered. Therefore, registering a lease in Victoria does not offer any greater protection to a tenant. However, there are still other benefits of registering a lease, including that it:

• provides an official record of your lease, which is noted on the register of the Land Titles Office and the Certificate of Title for the premises. This is useful in the instance where someone disputes the validity of the lease; and
• notifies third parties (e.g. potential purchasers, financiers) of the lease and the tenant’s interest in the property when undertaking a search. This is particularly beneficial for the landlord, as a registered lease is viewed as more secure than an unregistered lease by purchasers and financiers.

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How Do I Register My Lease? 

You will need to lodge your lease agreement with the Land Titles Office in your State or Territory. The landlord usually registers the lease. However, the tenant often has to incur the cost of lease registration. Additionally, the fees for registration differ between each state and territory. It is essential to factor in this cost before entering into a new lease. Both parties should ensure that when signing a lease, it is in a format that the relevant Land Titles Office of that state or territory will accept.

The relevant Land Titles Office are as follows:

• NSW Land Registry Services;
• QLD Department of Natural Resources, Mines and Energy;
• Victorian Department of Lands;
• Land Services SA;
• Landgate WA;
• Tasmanian Online Land Dealings; and
• Access Canberra.

It is important to note that the relevant authority in each state and territory will have particular criteria for registering a lease. Further, each state and territory Land Titles Office will have different requirements as to: 

• what forms you need to include for registration; 
• if you need to include a fully signed lease; and 
• if and what plans need to be lodged along with it. 

Key Takeaways

In some states, there is no requirement to register a commercial or retail lease. This is because the retail leasing laws protect all tenants when they are in possession of the property. Such laws will ensure tenants are safeguarded regardless of whether their lease is registered. Although your state or territory may not require registration of a lease, there are many benefits of registering a lease, including that it:

• provides an official record of your lease on the register of the Land Titles Office of Victoria and the Certificate of Title; and
• notifies third parties (e.g. potential purchasers, financiers) of the lease and your registered interest in the property.

You register your lease with the relevant Land and Titles Office in your state or territory. If you need help understanding your lease registration requirements or registering your lease, get in touch with our experienced leasing lawyers, who can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.

Frequently Asked Questions