Crown Lands

Sublease

Ministers consent to Sublease

Depending on the conditions of the lease and notifications on the Lands Title Register, it may be necessary to obtain the consent of the minister to sublease a Crown land lease. The initial assessment of the application will determine if there are any obvious objections to the proposed sublease of the lease. We may refuse the application at this stage if the sublease of the Crown land lease is not in the interests of the Crown.

Assessment to sublease 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 should accompany the application form and prescribed fee:

  • certified copy of the proposed sublease
  • certified copy of the registered power of attorney where applicable
  • ASIC current and historical company extract of the proposed sublessee
  • confirmation from the sublessor that it considers the proposed sublessee
    • is a fit and proper person
    • has the business acumen and financial capacity to operate the business and meet the terms and conditions of the sublease
    • holds or will be able to obtain all relevant licenses, approvals, and/or registrations to operate from the site
    • holds or will be able to obtain an insurance policy that meets the sublessee’s risk and indemnity requirements as per the provisions of the sublease.
  • Sublessee must provide a copy of a current search of the National Personal Insolvency Index for the sublessee.
  • The Sublease document should contain provisions to ensure that the sublessee is aware of and bound by the terms and conditions contained within the Crown tenure.

The following clauses are recommended for inclusion in subleases;

a) The Sublessee hereby acknowledges and agrees that the Sublessee has read and is aware of the terms, conditions and covenants on the part of the parties to Lease XXXXX - Dealing XXXXX  (the “Head Lease”) between the State of New South Wales as Lessor of the one part and the Sublessor (as Lessee) of the other part.

b) The Sublessee hereby covenants and agrees to observe, perform and comply with the covenants and agreements contained in the Head Lease subject to and for the purpose of this sublease.

c) The Sublessee covenants with the Sublessor to keep the Lessor indemnified against any liability under the covenants and conditions in the Head lease so far as they are applicable to the Premises

d) In the event of and to the extent of any such conflict or inconsistency the provisions of the Head Lease shall prevail and the Lessor shall prevail and take precedence. In the event that the Lessor taking action whereby the Head Lease is terminated then the Sub-Lessor shall be entitled to terminate this Sub-Lease and in such event the Sub-Lessee shall not claim nor shall the Lessor be liable for any compensation whatsoever by reason of termination of this Sublease.

Minister's consent to sublease a Crown land lease (PDF 275KB)