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Leasing of Crown land by direct negotiation


When considering a lease application, we will determine whether a competitive process or direct negotiation with the applicant is appropriate to ensure the process is fair and open.

We will not knowingly accept applications from or enter into negotiations with applicants who demonstrate an inability to meet the requirements of the NSW Government Code of Practice for Procurement (PDF, 77 KB).

Irrespective of whether a competitive process or direct negotiation is used to secure a tenant, the probity principles must always be complied with. 

As well as identifying the tenant offering the best value for money, the leasing process must demonstrate probity and be honest, fair and equitable. It must also be perceived by all involved as being fair and equitable.

Direct negotiation

Determinations of lease by direction negotiation are made using the following steps:

Step 1 : Application to lease

A proposal for direct negotiation may be initiated by either the department or an applicant.

The application must justify, with reference to the sale or lease of Crown land by direct negotiation policy, why direct negotiation is appropriate.

Step 2 : Assessment of the lease application

We will assess the application to determine if entering into direct negotiation is justified. 

If we identify any issues with the application, we will notify you.

Step 3 : Approval to enter into direct negotiations

If we approve the application, we will write to you explaining the next steps for both parties.

If we decide that a lease by direct negotiations is not justified, we may refuse the application.

We may also refuse the application if it allocates the Crown land for an alternative purpose.

Step 4 : Negotiation of lease

Both parties agree and sign a negotiation protocol that sets out the terms under which negotiations will take place.

Lease terms and conditions are then negotiated between the parties within an agreed timeframe.

Step 5 : Agreement to lease

Lease terms and conditions are agreed and the department prepares a draft lease for execution.

Step 6 : Execution and registration of lease

The lease is executed by the leaseholder first and then issued to us for execution by the delegate of the ministers.

We will manage the registration of the lease with NSW Land Registry Services.