Should I register my Commercial, Industrial or Retail Shop Lease?
What is registration?
Registration is the process of noting your lease interest on the title of the land.
This is done by registering the signed lease document with the Department of Resources, which deals with land titles in Queensland.
A fee applies to have the lease registered and additional fees and requirements (e.g. sketch or survey plan) may also apply if the lease is only for part of the land or building.
Is registering your lease compulsory?
If the Term of your lease, including Option periods is:
- less than 3 years – then your lease is considered a “short term lease” and the law has inbuilt, or automatic, protections for “indefeasibility in title”
- 3 years or more – then your lease does not have automatic lawful protection, and we strongly recommend your lease be registered on title.
What is the importance of registering your lease?
Registering a lease is important: -
- if the landlord wants to sell the land during the term of your lease. In this case, any prospective buyer can search the title and see that your lease is registered.
The buyer will need to honour and be bound by the lease as your new landlord after settlement of the purchase occurs.
- If the landlord has a mortgage registered on the title of the property and the landlord fails to make its mortgage repayments when due and owing, the landlord’s mortgagee may enforce its rights of reentry and retake possession of the property.
If this occurs, and your lease is not registered on title then the mortgagee does not have to honour your lease and may require you to vacate the property.
Contact Us
At MobbsMarr Legal, whether you are a landlord or tenant we can assist with all your leasing needs. Please contact us at admin@mobbsmarr.com.au or phone 07 4417 4417