Form 07L
Dealing type - L
Legislation - section 53 Real Property Act 1900
A lease for a term exceeding 3 years must be registered in order to pass a legal interest to the lessee: see section 53 Real Property Act 1900 which requires a lease to be registered in the Approved Form. A lease for a term of 3 years or less, including an option to renew, may be registered.
Where a retail shop lease is for a term of more than 3 years, including any options to renew, or the parties agree that the lease is to be registered, the lessor must lodge the executed lease for registration within 3 months after the lease is returned to the lessor or the lessor’s representative: see section 16 Retail Leases Act 1994.
NOTE: This dealing type may be lodged as a Dealing with Exception provided it is accompanied by a completed Lodgment Rules Exception form. In all other instances, the electronic dealing must be used.
Stamp duty - - required 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 and
- the duplicate copy of the lease marked with $10 duty is acceptable.
Not required for a lease dated on or after 1 January 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 Villages 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 or
- pursuant to Part V National Health Act 1953 (Cth) (repealed).
Consents - The consent of a mortgagee, Minister or caveator may be required. Where it is required, the relevant consent of the mortgagee, Minister or caveator must be attached. For further information on consents, please see Electronic dealings that require consent to be attached.
Minister's consent may be required for certain Crown land tenures. Parties should always contact Crown Lands NSW before entering into any lease.
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.
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 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.
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.
(A) The reference to the folio of the Register 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 Folio 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:
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whole of the lot - do not show address
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the premises which is the whole of the lot - do not show address
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premises which is not the whole of the lot - the description of property leased must refer to part folio followed by the premises description (see premises below), e.g. Part 1/123456 being Unit 1, 11 Smith Street, Sydney
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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 information on Lease of part of land.
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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 section 23F and section 23G Conveyancing Act 1919. See information on Lease of part of land.
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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. See information on Lease of premises.
For leases of adjoining air space see Registrar General's Guidelines for Deposited plans
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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.
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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
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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 section 23F and section 23G Conveyancing Act 1919.
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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
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public reserve by a Local Council must not exceed 21 years, including any options to renew and
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creating an easement - see sections 47(2) & (3) Real Property Act 1900. An easement may be created (by grant or reservation) by the parties to a lease if the parties to the lease are the registered proprietors of both the dominant and servient tenements.
Premises and part descriptions affecting multiple folios of the Register
For a lease of part of the land affecting multiple land folios in the same ownership:
- a plan is required to define the part; and
- a single lodgment fee together with an extra fee is payable where a 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').
A lease by the same lessee of different premises on 2 or more adjoining land folios in the same ownership can be lodged as a single lease. The Lease:
- must describe the premises as they affect each respective land folio (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 folio(s) that refers to a separate premises description which requires a separate recording, because of the need to record a separate premises description on each affected title, an extra fee will be charged for each additional land folio(s) requiring a separate recording.
NOTE: A lease of part of the land or premises affecting multiple land folios in different ownerships must be lodged as a separate lease for each land folio in different ownership.
(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:
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a life tenant, see Lease by a life tenant
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a mortgagee in possession see Lease by a mortgagee in possession
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a registered proprietor holding an estate as executor or administrator, the term must not exceed 3 years, including any options to renew, see section 153 Conveyancing Act 1919
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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
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the owners corporation of common property in a strata scheme, see section 25(1), section 27 & section 33 Strata Schemes Development Act 2015, see Lease of land for common property or association property page.
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the association of a community title scheme, see Lease of land for common property or association property.
A lease affecting a multiple ownership folio may contravene section 23F and section 23G Conveyancing 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 the Crown in the Right of NSW (Minister/Portfolio) must indicate the relevant statutory authority. The name of the statutory authority will be included in the notification, e.g. Crown in the Right of NSW (Minister/Portfolio)'.
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.
(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 or
- 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,
should state 'See Lease' in the lease notification in lieu of an expiry date. See information on Expired Leases.
A lease for a specific period that is not continuous, eg for particular days or weeks of the year, should 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 lease must commence within 21 years of the date of the lease, see section 120A(3) Conveyancing Act 1919.
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
(must be completed, or be deleted and verified)
The period or periods of time for the option(s) to renew and the relevant clause number in the lease annexure or memorandum must be stated. Any clause referred to must contain the details of the option to renew. Reference to several option periods will be included in the lease notification.
Item 5. Option to Purchase
(must be completed, or be deleted and verified)
The relevant clause number of the option to purchase in the lease annexure or memorandum must be stated. The clause must contain an option for the lessee to purchase the land. Reference to a clause containing an option of first refusal, i.e. an option for the lessor to sell the land to the lessee in the first instance, is unacceptable.
NOTE: An executor, administrator or trustee cannot grant a lease with an option to purchase.
Item 6. Rights
(must be completed, or be deleted and verified)
A lessor may reserve, or a lessee may grant certain rights, e.g. right of entry, use of stairways, together with car spaces etc. The relevant clause number of the rights in the lease annexure or memorandum must be stated.
Item 7. Annexures
(must be completed, or be deleted and verified)
Additional clauses and covenants relating to the lease may be contained in an annexure. Plans, consents and other documentation intended to be filed with the lease must be treated as annexures. The annexure must be identified, e.g. "Annexure A". Each page must be numbered. The first and last pages and any alterations or additions must be signed by all parties.
Item 8. Memorandum
(must be completed, or be deleted and verified)
The clauses and covenants relating to the lease may be contained in a memorandum filed in NSW LRS. Addition to, modification, or deletion of matters referred to in the memorandum is acceptable by way of a schedule attached to the lease.
Item 9. Rent
The item/clause number and identity of the annexure containing details of the rent payable must be stated.
NOTE: Any alteration to the rent must be marked by Revenue NSW.
(H) The dealing must be executed by the lessor and lessee and be witnessed, or be executed on their behalf as follows:
|
Attorney1 and witnessed |
Solicitor or Barrister |
Authorised Officer and witnessed |
Licensed Conveyancer |
Lessor2 |
 |
 |
 |
 |
Lessee2 |
 |
 |
 |
 |
1 the power of attorney does not have to be registered in the General Register of Deeds where the term of the lease, including any options to renew, does not exceed 3 years, see section 52 Powers of Attorney Act 2003.
2 Where the lessor or lessee is the owners corporation of a strata scheme, execution must take the form as set out in strata schemes Approved Form 23. The following certificates are also required:
Where the lessor or lessee is the association of a community, precinct or neighbourhood scheme, execution must take the form as set out in community title schemes Approved Form 18 . A certificate as in community title schemes Approved Form 21 is also required.
See execution requirements for companies, witnesses etc. pages.
(I) The statutory declaration must be completed where an expired lease containing a current option to renew or purchase affecting the same land or premises as the subject lease is noted on the Register.
The statutory declaration must be made by the lessor, the lessor's attorney or solicitor, or an authorised officer (the nature of the authority must be disclosed) and must be witnessed by a qualified witness. Where the declaration has been made outside NSW reference to the Oaths Act 1900 must be deleted, the relevant Act must be inserted, and the alteration verified.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/
NOTE: Where the lease affects a folio of the Register bearing the notification:
'DP... Note: Plan Is A Subdivision For Lease Purposes - s289K(3) Local Government Act 1919',
the following points apply:
Staff processing information
NOTE: Where the lease affects a folio of the Register bearing the notification:
'DP... Note: Plan Is A Subdivision For Lease Purposes - s289K(3) Local Government Act 1919',
the following points apply:
- the term together with any option to renew cannot exceed 20 years and
- no fee is payable (paid with plan).
For a lease of premises affecting multiple land folios 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.
Submit to DRD2 for approval as a multiple instrument.
Register premises against the folio which it affects: e.g. shop 1 on 1/SP723, shop 2 on 2/SP723
SD2 Leases
- All leases and any other dealings affecting:
- folios held by SD2
- folios for retirement villages (notification code RVT in the Second Schedule) and
- Sydney International Terminal (Sydney (Kingsford-Smith) Airport), ie the leasehold folio Vol. 8660 Fol. 50. Note Leases and sub-leases should affect Vol. 8660 Fol. 50 and not the fee simple folio 8/1050923;
must be referred to SD2. The folios for the references marked 'L' are permanently held with SD2 and 'L' automatically appears in the CT IND field in ITS.
Note Some computer folios issued for lease complexes are permanently held with SD2 and 'L' automatically appears in the CT IND field in ITS. The folio will have a Note (NB): 'Refer All Dealings To SD2, Folio Identifier Permanently Held'.
If in order proceed with registration of a lease:
- of the whole
- of premises where the term does not exceed 25 years.
Refer to DRD2
A lease affecting a multiple ownership folio that is not between the registered proprietors.
Refer to SM99
A lease:
- of adjacent land or land otherwise relevant to strata scheme s.25(1) Strata Schemes Development Act 2015 for addition to the common property of a strata scheme
- of adjacent land for addition to the association property of a community, neighbourhood or precinct scheme
- of an electricity sub-station
- of part of the land
- of premises for a term exceeding 25 years
- of land excluding premises
- that creates an easement
- that refers to a plan
- that refers to a maritme structure, e.g a berth, berthing area, boardwalk, jetty, mooring, pier, marina
- where a leasehold folio is to be created.
Refer to SD31
A lease:
- involving an Aboriginal Association or corporation
- involving the NSW/Local Aboriginal Land Council
- by The State of New South Wales
- by a Reserve Trust
- by National Parks and Wildlife, i.e. Kosciuszko leases
Refer to Legal through the Senior Examining Officer
A lease:
- by a chargee in possession
- by a mortgagee in possession
- containing a holding over provision where the lease has expired before it is in order for registration
- with an uncertain term or a term measured in other than days/years.
Registration procedure
Lease of whole
PRIME CODE L
CODE (name) P, C or Q [name of lessee]
LEASE EXPIRY DATE [date] or click See Lease
OPTION OF RENEWAL ... Years [And ... Further Options Of ... Years]
OPTION TO PURCHASE click Yes or No.
Lease of premises
PREMISES DESCR Of [description of premises including address].
Note Some computer folios have a separate AA or LADD code notification that sets out the full address of the premises affected by leases. The notification for these leases must refer to the shop, suite etc number but need not include the address.
Lease with a specific future commencement date
PREMISES DESCR Of [description of premises including address] Commences [date].
Note If the future commencement date cannot be ascertained enter 'See Lease For Commencement Date'.
Concurrent lease
PRIME CODE L
Usual lease entry.
ADD. TRANSACTION UNDR
PRIME CODE code of current registered lease as shown on the Register
PRIME NUMBER number of current registered lease
SUB CODE ULC
DETAILS Concurrent Lease.
Publication Date: March 2025