Surrender of lease

Form 07DL

Dealing type -

DL

MA (surrender of a Crown land tenure Lease)

Legislation - section 54 Real Property Act 1900.

Stamp duty - required.

Any alteration to the consideration must be marked by Revenue NSW.

NOS form - required for a surrender of a Crown land tenure Term Lease or Crown land Real Property Act  lease.
Not required in all other cases.

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.

Standard form of Caveat - a caveat will prevent the recording of a Surrender of Lease 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 generally not prevent registration, however it will be inspected. 

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

An extra lodgment fee is payable for each additional lease where more than one lease by the same lessor and lessee is being surrendered on the one form.

NOTE:  Where the applicant is Crown Lands and the lease being surrendered is a Perpetual Lease, 07DL is accepted as a 19MA for departmental purpose and an Annexure page must be attached addressing all notifications to be removed/added.This dealing type must be lodged as a Dealing with Exception.

A surrender of lease affecting a lease carried forward as a subsisting interest, i.e. 'Bk ... No. ... Lease To ...' must either:

  • be registered as a deed in the General Register of Deeds and a Request form 11R together with an Old System search showing the party entitled to deal with the lease must be lodged to record the interest. A change in proprietorship must be registered in the General Register of Deeds. NOTE: The Surrender of Lease form 07DL cannot be registered in this instance; or 

  • be accompanied by:

    • an Old System search of the leasehold folio or

    • a statutory declaration made by the person who undertook the Old System search of the leasehold folio stating:

    • their qualification

    • that he or she has inspected all deeds since the leasehold folio was created to the present time

    • the registered Book and No. and type of all instruments inspected to show the leasehold folio has not expired and

    • the registered Book and No. and type of all instruments to which the leasehold estate is subject.

A notification (code ULD): 'Devolution of Lease' is entered in the Second Schedule and all further transactions affecting the lease may be lodged on a Real Property Act form and do not require further evidence of devolution.

The surrender of a head lease does not imply the surrender of any current sub-leases affecting it. The sub-leases remain on the folio of the Register as leases for their term. See section 121 Conveyancing Act 1919. If the sublease affects only part of the land or premises in the head lease, further investigation by NSW LRS will be undertaken.

For the surrender of a Crown land Real Property Act lease or Crown land tenure lease a direction must be given by Crown Lands as regards a current sub-lease.

(A) The reference to the folio of the Register for the land affected must be stated. Where the property leased is contained in a lease folio, the number of the lease folio only must be stated. A lease can be surrendered as regards part of the land or part of the premises. The part being surrendered must be described in the same manner as for a lease, see Lease 07L Note (A)

NOTE: A surrender may affect an option of purchase or renewal only.

(B) The registered number of the head lease of a sublease being surrendered must be stated. The reference to the folio of the Register for the land affected must be stated. Where the property leased is contained in a lease folio, the number of the lease folio is the reference to the folio of the Register.

Where the lessee is an owners corporation and the lease being surrendered is for additional common property, the lease notification must be removed from the affected land and the common property folio of the Register.

Where the lessee is the association and the lease being surrendered is for additional association property in a community title scheme, the lease notification must be removed from the affected land and the association property folio of the Register, i.e. Lot 1 in the community title scheme.

(D) The full name of the lessor must be stated and must be identical to the name of the registered proprietor of the estate or lessee of the head lease as shown on the Register. A lease may be surrendered as regards less than all of the lessees.

A mortgagee or chargee in possession may surrender a lease. A statutory declaration by the mortgagee/chargee or their solicitor or barrister stating the mortgagee or chargee is in possession must be furnished.

(E) The registered number of the lease or sublease being surrendered must be stated.

(F) The full name of the lessee must be stated and must be identical to the name of the lessee shown on the Register.
Where a lessee has died a Notice of Death form or a Transmission Application must be lodged before the surrender of lease.

(G) The consideration is optional.

(H) The term that does not apply must be deleted and verified.

(I) The dealing must be executed by the lessor and the lessee and be witnessed, or be executed on their behalf as follows:

 

Attorney and witnessed

Solicitor or Barrister

Authorised Officer and witnessed

Licensed Conveyancer

Lessor1

Tick

Tick

Tick

Tick

Lessee

Tick

Cross

Tick

Cross

 1    A mortgagee or chargee in possession may execute the surrender.

Where The State of New South Wales is the lessor the surrender must be signed by an authorised delegate of the State or relevant Department, their capacity must be stated, and the execution must be witnessed.

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.

NOTE: If a concurrent lease is recorded on the Register the surrender of the original lease must be executed or consented to by the concurrent lessee, their attorney or authorised officer.

(J) The consent of any mortgagee, chargee or covenant chargee of the lease being surrendered is required. The full name of the mortgagee, chargee or covenant chargee and the registered number of the mortgage etc must be stated. The consent must be signed by the mortgagee, chargee or covenant chargee, their attorney, or authorised officer, and uploaded and attached to the dealing. The mortgage etc. will be removed with the lease. 

NOTE: The mortgagee may claim exemption pursuant to section 107 Conveyancing Act 1919.

All NSW legislation can be accessed at www.legislation.nsw.gov.au/
 
Staff processing information

If in order proceed with registration except for the following.

Refer to SM99

  • where part of the land or part of the premises is being surrendered.

  • where the lease created an easement.

Refer to SD2

  • for the recording of current sub-leases as leases where the head lease is surrendered. For SD2: where a new head lease to the same lessee is lodged, a requisition must be raised: 'How is it proposed to justify the incoming lease in view of Sub-lease ... which will be preserved as a head lease on registration of Surrender of Lease'.

  • where the surrender of lease affects a folio held by SD2.

Refer to SM98

Where the lease or sub-lease is surrendered as regards less than all of the lessees.

Refer to SD31

  • surrender of a Crown land tenure Lease.

  • surrender of a Crown land Real Property Act lease.

  • surrender of a Perpetual lease folio


Refer to Legal through the Senior Examining Officer

  • where the lessor holds the lease in a fiduciary capacity.

  • where a mortgagee or chargee has entered into possession.

  • where a mortgagee claims exemption from consent (s107 Conveyancing Act 1919).

  • affecting a Book and No. lease accompanied by evidence of devolution.
     

Registration procedure

PRIME CODE    code of lease being surrendered as shown on the Register

PRIME NO.    number of lease.

Note  Where the lease is for:

  • additional common property in a Strata scheme, also remove the related notification from the common property folio;

  • additional Association property in a Community Title scheme, also remove the related notification from the Association property title, i.e. lot 1 in the Community Title scheme.

Surrender of lease as regards less than all of the lessees.

TRANSACTION  MOD

PRIME CODE    code of lease as shown on the Register

PRIME NO.    number of lease

SELECT  ‘Names’

CODE (name)     P, C or Q [name of all current lessees]

COPY & DELETE  (SEE [number of Surrender of lease])

SELECT ‘Lease Terms’

PREMISES DESCRIPTION    (See [dealing numbers of previous notifications that changed lessee] [number of Surrender of lease]). [Premises description if any]

Note: Remove all previous dealings that changed lessee and add dealing numbers to the list of dealings in premises description, e.g. (See AA123456 AB456789 AC789123)

Surrender of sub-lease

PRIME CODE    code of head lease as shown on the Register

PRIME NO.    number of head lease

SUB CODE    code of sub-lease being surrendered as shown on the Register

SUB NO.    number of sub-lease.

Surrender of part (premises) of a lease

TRANSACTION    click Cancel and select UNDR

PRIME CODE    code of lease as shown on the Register

PRIME NO.    number of lease

SUB CODE    UA

DETAILS    Surrendered As Regards [full description of premises].

Affecting a Book and No. lease with satisfactory evidence of devolution

 ADD. TRANSACTION    UNDR

PRIME CODE    code of lease as shown on the Register

PRIME NUMBER    number of lease

SUB-CODE    ULD  (Devolution Of Lease).

 

Publication Date: June 2025