Lease (L1)

Section 116 of the Real Property Act 1886 (SA) says that when land is to be leased for a life or lives, or for any term of years over one year, the registered proprietor and the lessee must execute a lease in the appropriate form. For shorter terms they may. The lease must describe the land by reference to its certificate of title or another clear description, and it can include an option for the lessee to buy (s 117). A lease of mortgaged or encumbered land does not bind a mortgagee or encumbrancee who did not consent in writing before registration (s 118). Covenants can be set out on insert sheets or picked up from standard terms and conditions deposited with the Registrar-General (s 119A). Every lease also needs the section 273 certifications.

When you need it

• You are granting a lease of freehold land, or of land held under a Crown lease, for a term of more than one year and want it registered on the title (s 116).
• You want a right of renewal or an option to purchase to bind later purchasers and mortgagees. Unregistered short leases do not protect those rights unless registered or caveated (s 119).
• For an underlease of an existing registered lease, use Form L2 instead.

1. 1

   Land description and estate

   Say whether the lease is over the whole or part of the land in the certificate of title (CT) or Crown lease (CL), for example 'Whole of the land in CT Volume ... Folio ...'. For part, identify it by plan, for example 'Shop 4 in GRO Plan ... being portion of the land in CT Volume ... Folio ...'. In Estate and Interest insert 'Fee Simple' or 'Crown Lessee'.

2. 2

   Lessor and lessee

   Give the lessor's full name and current address. If the lessor's name has changed, the guidance notes require an Application to Note Change/Correction of Name to be lodged before the lease. Give the lessee's full name and address, and the mode of holding (for example joint tenants or tenants in common) where there is more than one lessee.

3. 3

   Term, rent and renewal

   The term must have a certain start date and a certain expiry date. Refer to any right of renewal in the term panel. State the rent and how it is paid, or other consideration.

4. 4

   Operative clause and covenants

   Strike through the words that do not apply about where the covenants are: either set out in the lease (on securely attached insert sheets) or in standard terms and conditions, in which case insert the deposited memorandum number. If standard terms are used, the lessor must give the lessee a copy before the lessee signs (s 119A(3)).

5. 5

   Rights created with the lease

   Complete the panel under the operative clause only if the lease also creates rights such as easements. In that case the land description simply refers to the whole of the title, and this panel defines the leased area and the rights.

6. 6

   Consents, date and certification

   Attach the written consent of any registered mortgagee or encumbrancee, otherwise the lease does not bind them (s 118). Date the form and complete the certifications for both lessor and lessee, deleting any that do not apply. A lawyer or registered conveyancer makes all four; a self-represented party makes only the two about retaining evidence and the document being correct and compliant. An attorney or a body corporate cannot certify.

• Leases (prefix L) are on the Registrar-General's list of dealings that must be lodged electronically through an Electronic Lodgement Network Operator (PEXA or Sympli) if executed on or after 3 August 2020. Listed exemptions include multiple lessees represented by different subscribers, and a lease by a mortgagee under section 137.
• A paper channel remains for self-represented parties and exempt dealings. Members of the public lodge paper documents with Land Services SA through the Face to Face service and can pay by cheque, cash or credit card.
• Verification of Identity and Verification of Authority requirements apply, except where the lessee is self-represented, according to the guidance notes.
• A registration fee applies. Check Land Services SA's current fee schedule before lodging, and use a Form B1 annexure sheet if a panel runs out of space.

• Leasing part of an allotment may need development approval under section 101 of the Planning, Development and Infrastructure Act 2016. The guidance notes treat the certifier's 'correct and compliant' certification as covering this.
• The lease takes effect subject to interests already registered or noted on the title, such as a mortgage or a permissive caveat.