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Pre Lease Agreement for Australia

Pre Lease Agreement Template for Australia

This document serves as a preliminary agreement between a prospective landlord and tenant in Australia, establishing the framework and conditions for entering into a formal lease agreement. It outlines key commercial terms, due diligence requirements, and pre-lease obligations while providing protection for both parties during the pre-lease period. The agreement complies with Australian property law and relevant state-specific retail leasing legislation, incorporating necessary statutory requirements and disclosure obligations. It sets out timelines, conditions precedent, and the process for progressing to the final lease execution.

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What is a Pre Lease Agreement?

A Pre Lease Agreement is a critical document used in Australian commercial property transactions to formalize the relationship between parties before executing a final lease. It is typically employed when there are complex pre-lease arrangements to be managed, such as property modifications, due diligence requirements, or specific conditions that need to be met before lease commencement. The agreement provides protection for both landlord and tenant during the preliminary phase, setting out key commercial terms, timeframes, and obligations. It includes provisions for deposit handling, due diligence processes, and conditions precedent, while ensuring compliance with relevant state and federal legislation. This document is particularly important for commercial and retail leasing transactions where significant preparation or negotiation is required before the formal lease can commence.

What sections should be included in a Pre Lease Agreement?

1. Parties: Identification of the prospective landlord and tenant, including full legal names and contact details

2. Background: Context of the agreement, including property identification and parties' intention to enter into a formal lease

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Property Details: Specific description of the premises, including address and any relevant lot/plan numbers

5. Proposed Lease Terms: Overview of the main commercial terms intended for the final lease

6. Due Diligence Period: Timeframe and conditions for tenant's inspection and investigation of the property

7. Deposit: Amount, payment terms, and conditions for holding and releasing any deposit

8. Pre-lease Obligations: Specific responsibilities of each party before lease execution

9. Conditions Precedent: Conditions that must be satisfied before proceeding to formal lease

10. Timeframes: Key dates and deadlines for various stages of the pre-lease process

11. Termination Rights: Circumstances under which either party may terminate the pre-lease agreement

12. Costs: Allocation of costs related to the pre-lease agreement and lease preparation

13. Confidentiality: Obligations regarding confidential information shared during the pre-lease period

14. Governing Law: Specification of applicable law and jurisdiction

What sections are optional to include in a Pre Lease Agreement?

1. Early Access: Terms for tenant access to the property before lease commencement, used when fitting out or modifications are required

2. Development Works: Details of any landlord works to be completed, included when property modifications are planned

3. Environmental Matters: Environmental obligations and investigations, included for properties with potential environmental concerns

4. Trading Requirements: Specific operational requirements or restrictions, included for retail or specialized commercial premises

5. Guarantees: Requirements for personal or bank guarantees, included when additional security is required

6. Break Rights: Conditions for early termination, included when flexibility is needed

7. Assignment: Rights to assign the pre-lease agreement, included when tenant may need to transfer rights

What schedules should be included in a Pre Lease Agreement?

1. Property Plans: Detailed plans showing the premises and any common areas

2. Proposed Lease Terms Schedule: Detailed commercial terms including rent, term, outgoings, and other key provisions

3. Due Diligence Checklist: List of items to be investigated during the due diligence period

4. Proposed Works Schedule: Details of any proposed landlord or tenant works

5. Required Approvals: List of necessary permits, licenses, and consents

6. Form of Lease: Draft or template of the proposed final lease agreement

7. Disclosure Statement: Statutory disclosure information required under retail leasing legislation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok˰ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

tiktok˰

Document Type

Lease Agreement

Sector

Cost

Free to use
Relevant legal definitions


































Clauses




























Relevant Industries

Real Estate

Retail

Commercial Property

Industrial

Healthcare

Hospitality

Professional Services

Education

Manufacturing

Logistics

Technology

Relevant Teams

Legal

Real Estate

Property Management

Operations

Finance

Risk and Compliance

Facilities Management

Commercial

Business Development

Project Management

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Commercial Director

Facilities Manager

Operations Manager

Chief Financial Officer

Asset Manager

Leasing Executive

Risk Manager

Compliance Officer

Business Development Manager

Project Manager

Retail Manager

General Counsel

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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