Jun

26

Registration of Leases in QLD

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Registration of commercial and retail leases in Queensland is not compulsory, however Ferguson Cannon Lawyers recommend that Lessee’s of such leases do have them registered with the Department of Natural Resources and Mines.

 

Registration of Leases

 

The Land Title Act 1994 (“the Act”) provides that;

“an unregistered Lease of a lot or part of a lot is not invalid merely because it is unregistered.”

 

Accordingly there is no obligation imposed by law for commercial and retail leases to be registered. However, a Lessee’s interests are not necessarily protected even though the Lease is not invalid. This is due to indefeasibility and the quality of registered interests.

 

Relevantly the Act provides the following:

Section 184(1) a registered proprietor of an interest in a lot holds the interest subject to registered interests effecting the lot but free from all other interests.

Section 184(3) however, subsection 1 does not apply to an interest mentioned in section 185.

Section 185(1)(b) a registered proprietor of a lot does not obtain the benefit of section 184 for the interest of a Lessee under a short lease.

Section 185(2)(b) the interest of the Lessee under subsection (1)(b) does not include a right to renew or extend the term of the short lease beyond 3 years from the beginning of the original term.

 

A short lease is defined in the Act as a Lease for a term of 3 years or less, or from year to year or a shorter period.

Pursuant to the Act, and specifically the sections referred to above, a Lessee of a lease of 3 years or less holds their interest free from all other interests in the lot. However, the protection does not extend to a right to renew or extend the term of the lease beyond 3 years from the beginning of the original term.

Registration of leases in Queensland effectively “registers” the right to the option and registration of commercial and retail leases of any duration, particularly if the Lease contains options, is strongly recommended. There are certain requirements for registering a Lease pursuant to the Land Title Act 1994 and the Property Law Act 1974.

 Ferguson Cannon are leasing experts and can assist you with any of your leasing requirements. Please contact Tony Pattinson @  Ferguson Cannon to discuss any queries.

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Category: Business & Corporate Services, Fact Finders, General, Intellectual Property, Land Law, Leasing

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