Ministers consent to transfer/assign a Crown land lease
A lease of Crown land can be bought and sold during the lifecycle of the lease. Assigning a Crown lease involves the seller (assignor) transferring their rights under the lease to the purchaser (assignee) through a Deed of Consent to an assignment of lease incorporating lessor’s consent (Deed of Assignment).
The deed is a legal document that places the new tenant in the position of the former tenant for the remaining term of the lease. The new tenant must comply with all the lease obligations as if they were the original tenant.
The deed of assignment will be an agreement between the three parties as:
- lessor—the State of New South Wales (Crown lands)
- assignor—the seller
- assignee—the purchaser.
In some instances, such as a lease for a community purpose, simply a letter of consent from the department may be enough to approve the transfer—this will be determined on a case by case basis.
Assessment to transfer a lease
Any decision regarding the eligibility of an application must:
- be lawful
- offer natural justice
- be based on evidence
- give reasons and provide accountability.
What you need to apply
The following supporting documentation is required as part of the application form and prescribed fee:
- details of the proposed assignee
- Australian Securities Investment Commission (ASIC) current and historical company extract of the proposed assignee
- demonstration of financial capacity to operate commercial business in-line with the lease purpose, including, but not limited to:
- financial statements for the past three years
- certified copy of the contract of sale
- registered power of attorney where applicable
- credit report
- public liability insurance certificate of currency
- details of relevant skills and experience aligned to the proposed activity by the proposed assignee
- evidence of the proposed assignee’s capacity to satisfy the financial obligations under the lease including rent, make good, proposed capital works (if any) and maintenance
- copy of the contract for sale of the business, or the contract for the transfer of capital as agreed between the parties to the transfer of the business
- copy of all development consents, permits and/or approvals relating to the business and other relevant activities carried out, or proposed to be carried out on the property
- details of any other associated agreements to be assigned in addition to the main agreement.
Minister's consent to transfer a Crown lease by assignment or change of control
Managing your Perpetual Lease, Perpetual Special Lease, Term Special Lease, or non-commercial Term Lease
A Perpetual Lease, Perpetual Special Lease, Term Perpetual Lease, or non-commercial Term Lease held over Crown land can be either purchased or sold during the lifecycle of the lease. The Transfer of these leases usually involves the seller (current lessee) transferring their interests in the land via way of a Contract of Sale to the purchaser (proposed Lessee).
Once the transfer documentation is registered by the New South Wales Land Registry Services, the new leaseholder will be required to comply with all lease obligations as though they were the former leaseholder.
Transferring these leases will be via an agreement between the two parties as:
- Current Leaseholder – the Seller
- Proposed Leaseholder—the Purchaser.
Assessment to transfer a lease
Any decision regarding the eligibility of an application must:
- be lawful
- offer natural justice
- be based on evidence.
The Consent of the Minister to the Transfer of a Lease cannot be granted if the lease account is in arrears. Any arrears will need to be paid in full.
What you need to apply
The following supporting documentation will need to be submitted with the online application form depending on the nature of the transfer.
- A Copy of Page 1 of the Contract of Sale (or copy of an executed agreement if an Intergenerational Transfer)
- If transferring to a Company, a copy of a current Australian Securities Investment Commission (ASIC) search which lists the Directors and Position Holders within the Company.
- For the transfer from a Deceased Estate to the Beneficiary a copy of the Will and the Probate Notice. The same applies if transferring to the Executor(s) if the Lease is to be on sold.
If your application is relating to the Consent of the Minister to Sub-Leasing please contact the Dubbo Business Centre at [email protected] prior to completing the online application form.