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Lease

Form 07L (PDF 300 KB)

Dealing type - L

Legislation - s53 Real Property Act 1900

Stamp duty

Required

if the lease is dated before 1-1-2008
in the case of a lease in respect of which a lump sum is to be paid, whether 'rent' or 'premium', regardless of the date.

Note Where stamp duty is required:

any alteration to the reference to title or premises description, or increase of the term or annual rent must be marked
the duplicate copy of the lease marked with $2 duty is acceptable.

Not required for a lease dated on or after 1-1-2008 where no lump sum payment is involved nor, regardless of the date, for a lease:

where the rent is less than $20,000 per annum
of premises in a retirement village within the meaning of the Retirement Village Act 1999
to a retired or disabled person for residential accommodation and not for profit by the lessor
of premises to the Home Care Service of NSW
pursuant to Part V National Health Act 1953 (Commonwealth).

Certificate of Title - required for:

the land or premises affected by the lease
the common property where land is contiguous to or relevant to a strata scheme is leased as additional common property
the association property, ie lot 1 in the community title scheme, where land adjacent to a community title scheme is leased as additional association property
the servient tenement where an easement is included.

Not required where the registered proprietor (lessor) is the Land Administration Ministerial Corporation.

NOS form - not required

Standard form of Caveat - prevents registration.

Does not prevent registration of a lease by a mortgagee or chargee in possession.

Priority Notice noted on the Register - see Priority Notice page.

An expired lease will not be accepted for lodgment under any circumstances, even if it is accompanied by a variation of lease extending the term.

A lease for a term exceeding 3 years must be registered in order to pass an estate to the lessee. A lease for a term of 3 years or less, including an option to renew, may be registered. See Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [280.100].

Minister's consent may be required for certain Crown land tenures.

The lease must not include any reference to the lessor or lessee being a trustee, executor or administrator for another party.

A current lease noted on the Register may be surrendered by an incoming lease, i.e. an implied surrender, if the incoming lease:

is to all of the current lessees, or is accompanied by:
a Surrender Of Lease form 07DL as regards those lessees not included in the incoming lease or
the consent of the current lessee
affects at least the same land or premises
commences before the expiry of the current lease and
is not made subject to the current lease.

An extra fee is payable for the implied surrender.

Where a current registered lease with different lessees affects the same land or premises and the terms overlap:

the current lease must be noted in the Encumbrances. The incoming lease will be treated as if it is a concurrent lease; or
the incoming lease must clearly indicate that it is a concurrent lease or
an accompanying letter must state that it is a concurrent lease, or
the current lease must be removed.

For a lease involving common property or an owners corporation, go to Lease of land for common property or association property page and also see Baalman and Wells, NSW Land Registry Services Practice, Lawbook Co. 2001 [535.500].

For a lease involving association property or an association of a community title scheme, go to Lease of land for common property or association property page and also see Baalman and Wells, NSW Land Registry Services Practice, Lawbook Co. 2001 [68.210.].

(A) The reference to title for the land affected by the lease must be stated.

Where the lease affects a lease folio complex (either commercial or retirement village), reference must be made to the relevant lease folio number (reference to the Head Title should also be included). A full premises description, including reference to a plan if required (see below), must also be stated.

An extra fee is payable where the land description is reliant on a plan annexed to the lease.

A lease of:

whole of the lot - do not show address
the premises which is the whole of the lot - do not show address
premises which is not the whole of the lot - the description of property leased must refer to part certificate of title followed by the premises description (see premises below), e.g. Part 1/123456 being Unit 1, 11 Smith Street, Sydney
part of the land for 5 years or less, including any options to renew, must fully describe the affected part by reference to a registered plan, a plan attached to the lease, or to another registered dealing. See Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 [12.370]
part of the land for more than 5 years, including any options to renew, other than a lease lodged by the Commonwealth of Australia, must describe the affected part by reference to a registered plan of subdivision that has been approved by the Local Council. See s23F and s23G Conveyancing Act 1919 (formerly s327AA Local Government Act 1919). Also see Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 [12.380]
premises must be fully defined by either:
» a unique description such as a shop name or number together with a full postal address (where the shop does not have a shop name or number and it is the only shop within the lot(s) affected by the lease, a letter stating that information must accompany the lease), or
» a plan annexed to the lease.
Vague or ambiguous descriptions such as 'including rear office' are not acceptable.
For leases of adjoining air space see Registrar General's Guidelines for Deposited plans.
premises for a term exceeding 25 years must be accompanied by a plan defining the premises. The plan does not require local council's approval. An extra fee is payable for the plan. See See Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 [12.400]
premises within a retirement village for a term exceeding 25 years requires the lodgment of a Retirement Village Memorandum with an annexed sketch plan setting out the location of the individual villa, unit, apartment etc within the complex prior to lodgment of the lease.
Land excluding premises must be considered as a lease of part of the land. A lease of land excluding premises being for a term of 5 years or more, including any option of renewal, other than a lease lodged by the Commonwealth of Australia, must describe the affected part by reference to a registered plan of subdivision that has been approved by the Local Council. See s 23F and s 23G Conveyancing Act 1919 (formerly s327AA Local Government Act 1919). Also see Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 [12.380]. Submit all cases to SM 99.
car spaces intended to be included in the leased premises must be clearly numbered. Where car spaces are not clearly identified, e.g. 'together with 1 car space' rather than 'car space No. 1', a requisition will be raised. Reference to car spaces elsewhere in the lease will be regarded as rights and will not be included in the lease notification. Where the car spaces are also shown in an annexed plan, dimensions of the car spaces must be included in the plan.
public reserve by a Local Council must not exceed 21 years, including any options to renew.
creating an easement, enter the reference to title for the servient tenement in ITS. See s47(2) & (3) Real Property Act 1900; Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [140.450].

Premises and part descriptions affecting multiple titles

For a lease of premises affecting multiple land titles in the same ownership, and the lease has a single premises description, e.g: level 1, floor 1, suite 1, shop 1 etc., the lease may be registered without referral to SM99.

For a lease of part of the land that cannot be defined as the 'whole' affecting multiple land titles in the same ownership:

a plan is required to define the part; and
a single lodgment fee together with an extra plan fee is payable where plan is annexed to dealing (see above regarding 'part of the land for 5 years or less' & 'part of the land for more than 5 years') . Submit all cases to SM99

A lease of part of the land or premises affecting multiple land titles in different ownerships must be lodged as a separate lease for each land title in different ownership. Submit all cases to SM99

A lease by the same lessee of different premises on 2 or more adjoining land titles in the same ownership can be:

lodged as a single lease;
must describe the premises as they affect each respective land title (e.g. shop 1 in 1/SP723 and shop 2 in 2/SP723 respectively); and
will be charged an extra fee for each additional land title.

Submit to DRD2 for approval as a multiple instrument.

(C) The full name of the lessor must be stated and must be identical to the registered proprietor as shown on the Register.

A lease by less than all of the registered proprietors may be lodged as regards their interest or share.

For a lease by:

a life tenant
a mortgagee in possession
a registered proprietor holding an estate as executor or administrator, the term must not exceed 3 years, including any options to renew, see s153 Conveyancing Act 1919
a registered proprietor holding an estate as a trustee, the term must not exceed 5 years, including any options to renew, except where it is allowed within the trust instrument and evidence to that effect is lodged with the lease. If in doubt refer to LEG99
the Owners corporation of common property in a Strata scheme, see Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [535.600]
the Association of a Community Title scheme, see Baalman And Wells, Land Titles Office Practice, Lawbook Co. 2001 [68.135f.].

A lease affecting a multiple ownership title may contravene s23F and s23G Conveyancing Act 1919 (formerly s327AA Local Government Act 1919) where it is not between the registered proprietors themselves.

(D) Where other mortgages, leases, charges, and/or covenant charges are lodged together with the lease, the Encumbrances must indicate the priority of registration, or an accompanying letter by the party ceding priority must set out the order of registration.

A writ must be noted in the Encumbrances, or the Court must consent to the lease, or the writ must be removed.

(E) The full name of the lessee must be stated.

A lease to Her Majesty Queen Elizabeth the Second must indicate the relevant statutory authority. The name of the statutory authority will be included in the notification, e.g. 'Her Majesty Queen Elizabeth the Second (State Rail Authority)'

For a lease to an owners corporation or a community, neighbourhood or precinct association of land to be added to the common property or association property go to Lease of land for common property or association property page and also see Baalman and Wells, NSW Land Registry Services Practice, Lawbook Co. 2001 [535.500 and 68.210].

(F) Tenancy/shares must be stated where there is more than one lessee. Reference to the tenancy/shares will not be entered on the Register.

(G)

Item 1. Term

The term stated must agree with the period of time covered by the commencement and expiry dates stated in Items 2 and 3.

A lease:

including a carry-over term
for the life of the lessee or for the life of another person or
that is uncertain as regards its term, e.g. until the happening of some event, or measures its term other than in years or a period between specified days,

will state 'See Lease' in the lease notification in lieu of an expiry date.

See Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 re:

leases: duration/term of a lease and the description of leased land [12.320]
certainty of term [12.330].

A lease for a specific period that is not continuous, eg for particular days or weeks of the year, will include reference to the specific time periods in the lease notification.

Item 2. Commencing Date

The date of commencement must be stated and can be in the past. The lease may commence on a specific date and/or the happening of a certain event. The term of the lease must commence within 21 years of the date of the lease. See Greg Stilianou, Land Titling Law and Practice in NSW, Lawbook Co. 2013 [12.340].

Item 3. Terminating Date

The date of termination must be stated or be ascertainable from the lease.

A lease will not be registered if the term of the lease has expired, regardless of the lease:

being lodged before the expiry date,
containing an option to purchase and/or renew, or
being accompanied by a variation of lease extending the term.

Item 4. Option to Renew