Lease/Sublease (NSW) | Help Centre

[Saysa]

Last updated: 16 February 2021
Jurisdiction: NSW
Additional Resources: Help Card

Overview

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You can now create and lodge Lease/Sublease documents in a NSW Workspace.

A Lease/Sublease is a tenancy agreement between the landlord and the tenant that allows the tenant to rent out the property based on the terms and conditions set out in the lease agreement.

In PEXA, a Lease may be lodged:

• As a standalone document,
• In combination with other documents, such as Transfers or Mortgage Discharges.

The Lease/Sublease document is required to be prepared and signed by only the Lessor party in PEXA.

Conditions and Provisions

To successfully lodge a Lease/Sublease through PEXA, a signed copy of the Conditions and Provisions will need to be uploaded and attached to the Lease/sublease document. The Conditions and Provisions attachment refers to the Annexures and any other relevant conditions related to the lease.

Note: Where the Lease/Sublease requires a Plan, ensure to attach the Plan to the Lease/Sublease as a separate attachment in PEXA.

Additional attachments may also be attached to the Lease/Sublease including:

• Plan
• Caveator’s Consent
• Minister’s Consent
• Mortgagee’s Consent
• Statutory Declaration
• Supporting evidence

Steps

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Note: This set of instruction applies to a standalone Lease document. If you are lodging a Lease and a Transfer together in the same Workspace, please ensure financial settlement is included in the Workspace.

1. Create a Workspace with the following settings:
   • Jurisdiction: NSW
   • Representative role:
     • Proprietor on Title  – When lodging a lease,
     • Incoming Proprietor – When lodging a lease/sublease in combination with a Transfer, or 
     • To Deal with an Interest – When lodging a sublease.
   • Complete the other fields as required.
2. Review the Land Title.
3. Represent the Lessor :
   1. Select one:
      • If lodging a standalone lease, click Edit next to the on-title party you represent.
      • If lodging in combination with a Transfer, click Create Party.
   2. Ensure I represent this party is selected.
   3. Complete the Party Details.
   4. Save the changes.
   Repeat Step 3 for all parties you represent.
4. Create the Lessee party :
   1. Click Create Party.
   2. Ensure the Role is set to Interest Holder.
   3. Complete the Lessee Details.
   4. Save the changes.
   Repeat Step 4 for each Lessee.
5. If a mortgagee is registered on title, then invite the first Mortgagee on Title into Workspace as a Consentor.
   1. Click Invite Participants.
   2. For the Role, select Consentor.
   3. In the Participants field, start typing the name of the other participant and then select their name from the drop-down list. If their name doesn't appear in the list, then you'll have to ask them to join PEXA via the on-screen link.
   4. Check the Title, Property Address, and Client Names.
   5. Optionally, you can add the Customer Account/Loan Number and Notes to the invitation.
   6. Click Send Invitations.
      An invitation will be sent to the participant and after they accept the invitation, they'll be able to transact in this Workspace.
6. Create a Lease or Sublease document:
   The Lease document is created by the Lessor.
   
   1. Navigate to Documents > Create Document > Lease.
   2. Complete the following fields on the Lease screen:
      Titles
      • Specify whether the Lease applies to Whole or Part of the title. If the extent is Part – Lease description, a description of the land affected will be required. This field is limited to 200 characters.
      • Is this a Sub-Lease of a Lease?: This field is automatically selected based on your Workspace role:
        • No – When creating the document in the role of Proprietor on Title or Incoming Proprietor.
        • Yes – When creating the document in the role of To deal with an Interest.
      
      Lessor Details
      This section auto-populates with:
      • The Proprietor(s) who are currently registered on title (Lease), or
      • The Lessor Details (Sublease)
      .
      
      Lessee Details
      This section is auto-populated with the represented Lessee's details you created on the Participants screen.
      
      Lease Details
      Summarise the terms of the Lease.
      • Lease Period: Enter the initial lease period in number of years, months, and days.
      • Rent details: Enter the details related to the rent. Terms of Payments and Rent Description are mandatory; for more information on these requirements, refer to Item 9 Rent on the NSW Land Registry website.
      • Option to Renew details: If there is an option to renew, then enter the renew period(s).
      • Option to Purchase details: Indicate if there is an 'Option to Purchase' for the lease.
   3. Save the Lease document.
   
   Note: Multiple Leases can be created in the same Workspace. If there is more than one Lease, then repeat Step 6 for each lease required.
7. Attach the Conditions and Provisions to the Lease/Sublease:
   A Conditions and Provisions attachment must be signed by both the landlord and the tenant. For information on Conditions and Provisions, see here.
   
   1. Navigate to Files > Upload Files.
   2. Upload the file:
      • Browse for the file.
      • Under Land Registry Attachment File, select Conditions and Provisions.
      • Complete the other fields as required.
      • Click Upload.
   3. Select Cog > Attach to attach the file to the Lease/Sublease.
   
   Note: In addition, the following files may also be attached to a Lease document:
   • Plan
   • Minister's Consent document
   • Caveator's Consent document
   • Mortgagee's Consent
   • Statutory Declaration
   • Supporting evidence 
8. Create a Consent:
   The party who holds control of the title creates the Consent.
9. View and sign the documents within the Lodgement Case.
   • The Lease must be signed by both the Lessor.
   • The Lodgement Instruction is signed by the lodging party.

Next steps:

For a standalone Lease/Sublease, when all documents within the lodgement case have been signed, the responsible party may submit the documents to the Land Registry for lodgement by selecting Submit for Lodgement.

If there is financial settlement, then both parties must sign the Financial Settlement Schedule. The Lease/Sublease  will be lodged together with all other documents in the lodgement case (including Transfer, if applicable) upon financial settlement.

Related Topics

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• Transfer—Representing the Vendor (NSW)
• Transfer—Representing the Purchaser (NSW)
• Consent
• Preparing Financial Settlement

[kristie1]

Hi

Is it compulsory for all leases in NSW to be registered via PEXA yet? If not is there a cut off date ?

[Saysa]

Hi @kristie1 ,

No, it's not compulsory in NSW as it's not mandated yet. We don't have a date on when it will be mandated, but when we do we'll make an announcement on Community.

[kristie1]

thank you Saysa

[Amanda19]

I opened a Workspace in December representing the Lessor and issued an invitation to the Lessee's solicitor.  Now that we can prepare a single-party Lease, can I withdraw the invitation (they haven't accepted yet) and continue on my own as if I had opened the workspace today as a single-party Lease?

[NancyMadafferi]

Hi @Amanda19 

Thanks for reaching out.

You absolutely can create a Lease without the Lessee being represented now. I suggest withdrawing the invitation to the Lessee and if you have created the Lease document, select the action cog beside the Lease and 'Remove Document'.

We have this handy article on our Community Help Centre that will step you through how to complete the new Lease:

https://community.pexa.com.au/t5/Help-Centre/Lease-NSW-Help-Centre/ba-p/13758

If you have any questions or concerns don't hesitate to tag me in your reply.

Cheers

Nancy

[Amanda19]

Thanks Nancy!