Surrender of Lease / Underlease (SA) | Help Centre

Saysa · ‎12-11-2019

Published: 12 November 2019
Jurisdiction: SA
Additional Resources: Help Card

Overview

You can lodge a Surrender of Lease or Underlease in PEXA.

A Surrender of Lease available to land titles of any tenancy type and requires both the lessor and lessee to be represented in the Workspace. A Surrender of Lease / Underlease may be applied over a Whole or Part of the lease. If the Lease being surrendered is subject to an Underlease, then the Underlease will be preserved and become a Lease.

Who can lodge?

Subscribers in the role of Proprietor on Title, Incoming Proprietor, and To Deal with an Interest can lodge a Surrender of Lease or Underlease either:

As a standalone document
Together with a Transfer

A Surrender of Lease/ Underlease may be applied:

As a partial surrender
As a full surrender

If you surrender multiple Leases within the same Lodgement Case, please ensure that only one Surrender of Lease document is created for each Lease or Underlease. You cannot create one Surrender of Lease document for multiple Leases or Underleases.

Are supporting documents required?

Supporting documents are required when lodging a Surrender of Lease or Underlease in PEXA. If there is a mortgage or encumbrance over the lease or land, then a consent from the mortgagee or encumbrancee must be attached to the Surrender of Lease or Underlease. To determine which supporting documents are required, please refer to the 'Jessups Lands Titles Office Forms and Practice' guide.

Dealing with name justifications

In the state of South Australia, when the Proprietor on Title (who is remaining on title) has a current name that is different from the name that is registered on title, then an ‘Application to Note Change of Name’ must be lodged in paper through Land Services SA to update the Register before the following Document Types can be lodged electronically:

Lease
Underlease
Surrender of Lease/Underlease
Part Tenancy Transfer

For more information, please visit the Land Services SA website on how to lodge an ‘Application to Note Change of Name’.

Steps

Prerequisites

Ensure that the current name of the Proprietor on Title is the same name registered on title, otherwise you are required to complete and lodge an 'Application to Note Change of Name' with Land Services SA first.

Instructions

These instructions assume you're creating a new Workspace in PEXA. If you've accepted an invitation to the Workspace, then skip to Step 3.

Create a Workspace with the following settings:
- Representative role:
  - Proprietor on Title–If you're representing the current proprietor,
  - Incoming Proprietor–If you're representing the new proprietors being transfered onto a title, or
  - To deal with an Interest–For any other role in the Surrender of Lease/Underlease.
  Note: If you represent both parties, you must add the other role in Workspace Settings, then for each party, continue with the steps relevant for your role.
- Financial Settlement Required? Select Yes because stamp duty must be assessed.
- Complete the other fields as required.
Review the Land Title:
- Check the details returned from the Land Registry.
Represent all lessors in the Lease/Underlease:
Depending on your role in the Workspace, you’ll represent the party in your respective role.
1. Navigate to the Participant screen, click Edit next to the lessor whom you represent.
2. Complete the Party Details.
3. Save the changes.
Repeat this step for all lessors whom you represent.
Note: All lessors in the Lease / Underlease must be represented.
Represent the lessee as Interest Holder:
Now it's time to represent the lessee in the role of To deal with an Interest.

If you don't represent the lessee, then invite the party's representative into the Workspace in the role of To deal with an Interest.
1. On the Participants screen, click Invite Participant.
2. In the Participants field, start typing the name of the practitioner representing the lessee and select their name from the drop-down list. If their name doesn't appear in the list, you can 'invite them to connect' via the on-screen link.
3. For the Role, select To deal with an Interest.
4. Click Send Invitations.
  An invitation will be sent to the participant.
5. Wait for the participant to:
  - Accept the invitation via Invitations.
  - Edit and represent the lessee party as Interest Holder.
If you also represent the lessee then ensure you're in the role of To deal with an Interest to represent the lessee in the Workspace. If you're in another Workspace role, then switch roles now.
1. In the role of To deal with an Interest, select Edit next to the lessee you represent.
2. Complete the Party Details.
3. Save the changes.
Create a Surrender of Lease document:
The Surrender of Lease document is created by the lessor.
1. Navigate to Documents > Create Document > Surrender of Lease.
2. Complete the following fields on the Surrender of Lease screen:
  
  Titles
  - For each land title, specify whether the lease that was originally registered applies to a Whole or Part of the land. The Extent must match the extent of the lease registered on title.
  - For Interest Affected, select the Lease or Underlease on title. This is the lease/underlease you wish to surrender.
  Lessor Details
  
  This section auto-populates with the details of the represented lessor.
  - You must enter an address for each lessor.
  Lessee Details
  
  This section auto-populates with the details of the represented lessee.
  - You must enter an address for each lessee.
  Surrender Details
  
  Specify the details of the surrender.
  - Is the Whole of the Land in the Lease being surrendered:
    - Yes–If the Whole lease is being surrendered, then you need to enter only the Consideration Amount.
    - No–If only Part of the lease is being surrendered, then you need to enter either the Consideration Amount or Consideration Details.
  - Consideration Amount: Enter the consideration amount.
  - Consideration Detail: Enter some text to describe the scope of the surrender. Describe only what is being surrendered.
3. Save the Surrender of Lease document.
Note: Multiple Surrenders of Lease can be created in the same Workspace. If there is more than one Surrender of Lease, then repeat this step for each surrender required.
Upload and attach supporting files:
Upload supporting files and attach it to the Surrender of Lease document. If applicable, attach a Consent signed by both the lessor and the lessee. To determine which supporting documents are required, please refer to the 'Jessups Lands Titles Office Forms and Practice' guide.
1. If you are the lessor, navigate to Files > Upload Files.
2. Upload the file:
  - Browse for the file.
  - Under Land Registry Attachment File, select Consent.
  - Complete the other fields as required.
  - Click Upload.
3. From the Action column, select Attach to attach the file to the Surrender of Lease.
Enter stamp duty details:
It is the lessor's responsibility to prepare the duty assessment.
1. After completing duty assessment in RevenueSA, navigate to the Stamp Duty screen and click Enter Duty Information.
2. Complete your stamp duty.
3. Click Save.
View, sign, and lodge the documents:
1. Once the Surrender of Lease or Underlease is Prepared and Successful, select View from the Action column to view a render of this document. Click Back to return to the Documents screen.
2. Click Sign to sign the Lodgement instructions, Surrender of Lease / Underlease, and if applicable, Transfer.
  Note:
  - The Surrender of Lease must be signed by both the lessor and lessee.
  - The Lodgement Instruction is signed by the lodging party.
Complete Financial Settlement Schedule:
1. Navigate to the Financial Settlement screen.
2. Enter the Destination funds:
  - Select the Destinations or Payments and Adjustments tab.
  - Click Add Destinations.
  - Complete the destination details then Save the changes.
3. Enter the Source funds:
  Complete this step only if you are providing source funds, otherwise skip this step.
  - Select the Source or Source Funds tab.
  - Click Add Source.
  - Complete the details then Save the changes.
  - Click Verify Funds.
  - Click Authorise Funds.
4. Select Sign to digitally sign the settlement schedule.
Results

You have submitted a Surrender of Lease for lodgement. All parties need to sign the Financial Settlement Schedule. Make sure the status of the Workspace is Ready on the day of settlement.