Surrender of Lease by Operation of Law
This page aims to help you complete an electronic Surrender of Lease by Operation of Law dealing form. This form is used to remove a lease notification where:
- the subject lease has been determined by the lessor or a mortgagee in possession, or
- the lessee has left the premises in such a manner to imply a surrender of the lease and the lessor has regained possession of the land or premises.
The lease must be surrendered as regards the whole of the land or premises leased.
The consent of the mortgagee, chargee or covenant chargee is required to be attached to the dealing form where a lease is subject to a mortgage, charge or covenant charge.
NOTE: A lessee becoming bankrupt cannot be used as the basis for a surrender by operation of law. The lease may be determined by disclaimer. For determination of a lease by disclaimer see and for information on determination by frustration or notice.
NOTE: Where a mortgage or charge of the lease is noted on the Register, a notice of the intention to determine the lease (and accordingly remove the mortgage or charge of lease) is prepared by NSW LRS and sent to the mortgagee or chargee. The mortgagee or chargee then has 1 month from the date of the notice to seek a Court Order to prevent the Registrar General from registering the determination of the lease.
NOTE: A surrender of lease by operation of law affecting a lease carried forward as a subsisting interest, i.e. 'Bk ... No. ... Lease To ...' must be lodged as a Dealing with Exception.
NOTE: A surrender of lease by a mortgagee in possession must be lodged as a Dealing with Exception.
NOTE: The applicant must be represented in the workspace for this dealing form.
Before lodging this document electronically via an Electronic Lodgment Network, a Subscriber must:
- verify their Client’s identity
- establish their Client’s right to deal with the land
- have a properly completed and executed Client Authorisation form and
- retain evidence that supports the dealing (see Supporting Evidence below).
The Subscriber must also certify that they have taken reasonable steps to ensure that the instrument is correct and compliant with relevant law and any Prescribed Requirement.
For more information on these requirements see:
Guide to complete
Legislation – section 54 Real Property Act 1900.
Stamp Duty – required.
Notice of Sale – not required.
Standard Form of Caveat – a caveat will prevent the recording of a Surrender of Lease by Operation of Law where the caveat is recorded against the lease being surrendered. A caveat drawn against the lease will be removed if the caveator consents to the surrender. A caveat recorded against the land will not prevent registration.
Priority Notice Noted on the Register - see Priority Notice page for more information.
The following headings refer to the data fields which must be completed in order to lodge an electronic Surrender of Lease by Operation of Law dealing form.
Enter the land title reference(s).
Party Details – Party Name
Select the lessor.
Create Document – Select Other Documents.
Select Surrender of Lease by Operation of Law.
Dealing on Title
Select the dealing number of the lease being surrendered.
Select the lessee.
Select the lessor.
Attachment Type – Statutory Declaration
The statutory declaration must state that:
- it is the intention of the lessee to give up the premises and of the lessor to accept that intention as a surrender
- the lessor has resumed possession of the land or premises and
- the lessee was not, by reason of any mortgage, charge or covenant charge on the lease, incompetent to surrender on the relevant date.
General statutory declaration requirements can be found here.
Attachment Type – Approved Forms
Where the lessor is the owners corporation of a strata scheme, a certificate in the form of strata schemes Approved Form 13 is required. Execution of the certificate must take the form as set out in strata schemes Approved Form 23.
Where the lessor is the association of a community, precinct or neighbourhood scheme, a certificate in the form of Approved Form 21 is required. Execution of the certificate must take the form as set out in community title schemes Approved Form 18.
Attachment Type – Caveator’s Consent
Attach a caveator’s consent if required.
Attachment Type – Mortgagee’s Consent
Attach a mortgagee’s consent if required.
Attachment Type – Supporting Evidence (optional)
Attach any supporting evidence if required, such as the consent of a chargee or covenant chargee.
In addition to evidence supporting the steps taken by the Subscriber to verify the identity of their Client and establish their Client’s right to deal, the Subscriber may be required to retain other evidence to support the dealing.
It is a matter for the Subscriber to be satisfied that they have met the requirements for the dealing. Please refer to the ARNECC Guidance Note 5 for assistance on retaining evidence to support conveyancing transactions in accordance with the NSW Participation Rules.
All NSW legislation can be accessed at www.legislation.nsw.gov.au