Expired lease

Expired lease with no options to purchase or renew

A lease that expired more than 12 months ago that does not have an option to purchase or renew will be removed from the Torrens Title Register on lodgment of any dealing.

A lease that expired less than 12 months ago that does not have an option to purchase or renew will only be removed from the Torrens Title Register on lodgment of:

  • a lease affecting at least the same land or premises
  • a transfer changing ownership or
  • any other dealing if it is accompanied by a statutory declaration by the lessor or the lessor's solicitor stating that a variation of lease extending the term has not been entered into. Otherwise the dealing will be registered and the lease will not be removed.

Note  A registered mortgage or charge of the lease will be removed with the lease where the lease can be removed on expiry of the term. The consent of the mortgagee is required for a surrender (including implied surrender) of a current lease.

Note  Where a caveat is recorded against an expired lease, that lease will not be removed from the folio of the Register if:

  • the caveator is claiming pursuant to an option to renew and
  • a new lease to a different lessee has been lodged.

In that case, a requisition will be raised to the effect that the caveat must be either:

  • withdrawn or
  • lapsed pursuant to an Application for Preparation of Lapsing Notice.

If the requisition is not complied with, do not reject the dealing. It must be referred to Legal for direction.

Expired lease with option to purchase

An expired lease with an option to purchase will be removed from the Torrens Title Register on registration of:

  • a transfer to the parties specified in the option or
  • any other dealing accompanied by a statutory declaration by the lessor or the lessor's solicitor stating that the time for the exercise of the option has expired and the option was not exercised, or that the option was not exercised.

Note  A registered mortgage or charge of the lease will be removed with the lease where the lease can be removed on expiry of the term. The consent of the mortgagee is required for a surrender (including implied surrender) of a current lease. 

Note  Where a caveat is recorded against an expired lease, that lease will not be removed from the folio of the Register if:

  • the caveator is claiming pursuant to an option to renew and
  • a new lease to the same lessee has been lodged.

In that case, a requisition will be raised to the effect that the caveat must be either:

  • withdrawn or
  • lapsed pursuant to an Application for Preparation of Lapsing Notice.

If the requisition is not complied with, do not reject the dealing. It must be referred to Legal for direction.

Expired lease with option to renew

An expired lease will be removed where:

  • the term for a single option to renew has expired or
  • the term for the first option to renew has expired regardless of any other options to renew.

An expired lease that has a current option to renew will only be removed from the Torrens Title Register on lodgment of:

  • a lease that takes up the option
  • a lease affecting at least the same land or premises that does not take up the option. The lease must be accompanied by a statutory declaration by the lessor or the lessor's solicitor stating that the time for the exercise of the option has expired and the option was not exercised, or the option was not exercised or
  • any other dealing that is accompanied by a statutory declaration by the lessor or the lessor's solicitor stating that the time for the exercise of the option has expired and the option was not exercised, or the option was not exercised. Otherwise the dealing will be registered and the lease will not be removed.

Note  A registered mortgage or charge of the lease will be removed with the lease where the lease can be removed on expiry of the term.  The consent of the mortgagee is required for a surrender (including implied surrender) of a current lease. 

Note  Where a caveat is recorded against an expired lease, that lease will not be removed from the folio of the Register if:

  • the caveator is claiming pursuant to an option to renew and
  • a new lease to a different lessee has been lodged.

In that case, a requisition will be raised to the effect that the caveat must be either:

  • withdrawn or
  • lapsed pursuant to an Application for Preparation of Lapsing Notice.

If the requisition is not complied with, do not reject the dealing. It must be referred to Legal for direction.