Surrender of Lease (S1)

Section 120 of the Real Property Act 1886 (SA) lets a registered lease be surrendered by an instrument in the appropriate form, executed by both lessee and lessor. Once it is registered, the Registrar-General enters a memorial of the surrender and the lessee's interest revests in the lessor (s 122). A lease that is mortgaged or encumbered, or is over mortgaged or encumbered land, cannot be surrendered without the written consent of the mortgagee or encumbrancee, and every surrender is subject to any registered underlease (s 123). Form S1 covers a full surrender (prefix SL) and a partial surrender of part of the land (prefix PL). It is different from the section 121 process, where the lessor records a surrender after the lessee has abandoned the premises.

When you need it

• The lessor and lessee have agreed to end a registered lease early and want it removed from the title.
• The lease is to be surrendered over part of the land only and will continue over the rest (partial surrender, prefix PL).
• Not for a lessee who has walked away: that is a separate application by the lessor under section 121.

1. 1

   Lease being surrendered and land

   Insert the registered number of the lease and state whether the whole or part of it is surrendered. Describe the land the surrender operates over, for example 'Whole of the land in CT Volume ... Folio ...', or for part, 'Shop 4 in GP ... being portion of the land in CT Volume ... Folio ...'.

2. 2

   Lessor

   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 surrender.

3. 3

   Lessee

   Give the lessee's full name and current address. For a full surrender, a changed name can be tied up in the panel: '[new name] of [address] registered as [old name] as a consequence of [reason]'. For a partial surrender, a changed lessee name needs an Application to Note Change/Correction of Name first.

4. 4

   Consideration and operative clause

   State any consideration in words and figures. For a full surrender strike through clause (b); for a surrender over only the land described, strike through clause (a).

5. 5

   Consents

   Attach the written consent of every prior and subsequent mortgagee and encumbrancee (s 123). Land Services SA has reminded lodging parties this includes a mortgagee or encumbrancee that is a deregistered company.

6. 6

   Date and certification

   Date the form and complete the lessor and lessee certifications. Delete those that do not apply. Self-represented parties make only the two certifications about retaining evidence and correctness. An attorney or a body corporate cannot certify.

• The guidance notes say the surrender must be submitted to RevenueSA before it is lodged with Land Services SA.
• Surrenders of lease (prefix SL) executed on or after 3 August 2020 must be lodged electronically through an Electronic Lodgement Network Operator unless an exemption applies. The mandate does not apply to a section 121 surrender.
• Self-represented parties and exempt dealings can lodge on paper with Land Services SA through the Face to Face service.
• A registration fee applies. Check Land Services SA's current fee schedule before lodging.

• Missing mortgagee consents are a common reason for requisitions. Search the title first to find every mortgage and encumbrance over the lease and the land.
• Registered underleases survive the surrender (s 123). Deal with any underlease separately (Form S2) if it is also to end.
• Verification of Identity and Verification of Authority requirements apply, except where the lessee is self-represented.