Surrender of Underlease (S2)

Form S2 is the approved form for surrendering a registered underlease: prefix SU for a full surrender and PU for a partial surrender. The Real Property Act 1886 (SA) provides for a registered lease to be surrendered by instrument executed by both parties (s 120), after which the surrendered interest revests (s 122). Section 123 prevents a surrender without the written consent of mortgagees and encumbrancees, and the guidance notes require the consent of all prior and subsequent mortgagees and encumbrancees of both the underlease and the head lease. Every party certifies the instrument under section 273.

When you need it

• The underlessor (the head lessee) and the underlessee agree to end a registered underlease.
• The underlease is to end over part of the land only and continue over the rest (prefix PU).
• Not for abandonment by the underlessee, which is handled by a separate section 121 application.

1. 1

   Underlease and land

   Insert the registered number of the underlease, say whether the whole or part is surrendered, and describe the land the surrender operates over by title reference or, for part, by plan and title.

2. 2

   Underlessor

   Give the full name and current address. If the underlessor's name has changed, lodge an Application to Note Change/Correction of Name before the surrender.

3. 3

   Underlessee

   Give the full name and current address. On 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]'); on a partial surrender lodge an Application to Note Change/Correction of Name first.

4. 4

   Consideration and operative clause

   State any consideration in words and figures. Strike through clause (b) for a full surrender, or clause (a) if the underlease is surrendered only as regards the land described.

5. 5

   Consents, date and certification

   Attach the written consents of all mortgagees and encumbrancees of the underlease and the head lease. Date the form and complete both sets of certifications, deleting those that do not apply.

• The guidance notes say the surrender of underlease must be submitted to RevenueSA before lodgement.
• Surrenders of underlease (prefix SU) executed on or after 3 August 2020 must be lodged electronically through an Electronic Lodgement Network Operator unless an exemption applies, such as a surrender under section 121.
• 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.

• Search both the head lease and the underlease for mortgages before preparing consents.
• Self-represented parties make only the certifications about retaining evidence and correctness. An attorney or a body corporate cannot certify.
• Verification of Identity and Verification of Authority requirements apply, except where the underlessee is self-represented.