When acting for clients in commercial lease matters, we frequently get asked as to whether it is necessary to register their leases.
From a lessee’s perspective, registering a lease is important as it will protect its interest in title against adverse events such as when the landlord sells the property to another party or the mortgagee takes possession of the property during the term of the lease.
In New South Wales, a commercial lease with a term exceeding three years must be registered while a commercial lease with a term of three years or less may be registered at the agreement between the lessor and the lessee.
If there is a mortgage in respect of the title relating to the property, then consent must be obtained from the mortgagee prior to registration of the lease. Depending on the specific mortgagee, there may be costs involved in obtaining such consent. Further, the New South Wales Land Registry Services currently charges a fee of $143.50 inclusive of GST for registration of a lease.
Entering into a commercial lease is a significant decision that may lead to serious legal consequences. This is why it is imperative to receive proper legal advice prior to entering into a commercial lease.
If you are looking for high-quality property lawyers to advise you on a commercial lease, please contact our office today.
“The contents do not constitute legal advice, are not intended to be a substitute for legal advice and should not be relied upon as such. You should seek legal advice or other professional advice in relation to any particular matters you may have.“