Lease Contracts
Should the lease be registered?
Whether the lease should be registered depends on:
1. The Term:
If the lease term exceeds three years, the lease should be registered in order for it to be effective at law - this ensures that the tenant can take proceedings for possession at law and that the landlord can sue for unpaid rent at law.
If the commencement date of the lease is a
long way off, the lease should be registered to protect the tenancy.
2. The Option:
When the term plus the option exceeds three years, the lease should also be registered in order to protect the option.
If a second option exists the lease should be registered in order to protect this second option.
3. The Commencement Date:
If the commencement date of the lease is a long way off, the lease should be registered to protect the tenancy.
What protection do you get if you register
your lease?
Registering your lease will ensure that both the landlord and the tenant are
protected. Registering your lease ensures that the tenant achieves indefeasibility
of title which enables the tenant to defeat any other claims over the property
and defeats any subsequent registration. Registering the lease will ensure
that the obligations outlined in the agreement will be complied with by both
parties and are afforded the maximum protection of the law.
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