September 1, 2009

The Integrated Planning Act 1997 (“IPA”) mandates council approval in respect of some leases as if the lease were a subdivision of a lot.

A lease (of no matter what duration) of the whole of the land or of the whole or part of a building does not require local government development approval. If however, the lease is:

  1. for part of the land, or
  2. for part of a building plus part of the land outside the building,

and the lease term is for 10 years or more (including options), then the IPA specifies that Local Government development approval must be obtained before the lease can be registered. Local Government Approval must also be obtained if part of a lot in a group title plan or part of the common property is being leased for 10 years or more (including options).

If during the course of the lease, the term is extended beyond a total 10 year period then development approval will also need to be obtained.

Once development approval has been obtained the lease must be lodged for registration at the Titles Office within 6 months or the approval will lapse and a fresh application will need to be made.

If leasing part of a residential or commercial lot for a lease term of 10 years or more (including option terms), landlords should always obtain legal advice on the implications of the IPA.

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