Commercial Landlords: Key Changes Coming Under Queensland’s New Property Law Act 2023

Lease Assignments: A Month to Respond—Or Consent Is Deemed

If a tenant wants to assign or sublease their lease, the Act now prescribes a mandatory process—and it applies to all leases, even those signed before the Act takes effect.

Here’s what landlords need to know:

• Tenants must provide relevant information when requesting consent to assign or sublet.
• Landlords can request further information, but must give a decision within one month.
• If you don’t respond within the month, consent is deemed to have been given.
• Importantly, consent must not be unreasonably withheld—this is now a statutory obligation, not just a courtesy.

What this means for landlords: Delays or vague refusals can no longer be your fall-back strategy. If you fail to engage with the request in time or don’t have solid, reasonable grounds to say no, you could lose your ability to object altogether—and risk a court challenge.

Action point: Put a process in place to track and respond to assignment requests quickly and consistently.

Assigning Liability: Why Strong Assignment Docs Matter

The new Act also changes how liability works when a lease is assigned:

• The incoming tenant assumes all liabilities under the lease—including those that arose before the assignment.
• The assigning (outgoing) tenant and their guarantors are automatically released from liability once the lease is further assigned, unless the lease says otherwise.

Here’s why that matters: if you’re relying on the original tenant to remain liable for their own breaches before the assignment, you’ll need clear contractual terms to preserve that.

Pro tip: Solid assignment documents between the outgoing and incoming tenants are essential. This ensures everyone understands who’s responsible for what—especially when liabilities start shifting hands.

Lease Defaults: Notice Now Mandatory Before Termination

Landlords can no longer jump straight to termination for a tenant breach—not even for missed rent.

The Act now requires a formal breach notice before any termination can occur. This notice must:

• Describe the breach clearly,
• Give the tenant a reasonable opportunity to fix it (based on the nature and extent of the breach),
• State any compensation sought, if relevant.

You must also serve this notice on:

• Any mortgagee of the lease,
• Any guarantor,
• Any sublessee, and
• Any assignor who hasn’t been released.

The only exception? If the tenant has abandoned the premises. Even then, you still need to notify others with a legal interest.

Translation: Terminating a lease now comes with process—and paperwork. Miss a step, and you could find yourself back at square one.

Option Terms: Use It or (Properly) Refuse It

If your lease includes an option to renew and that option is conditional—say, on the tenant not being in default or satisfying certain formalities—you now need to follow a defined process to refuse it.

You must:

• Provide written notice within 10 business days of being informed the tenant intends to exercise the option,
• Clearly state the reasons for refusal,
• Be prepared for the tenant to take the issue to court within one month if they don’t agree.

So what? You’ll need systems in place to act quickly and back up your position with evidence if you’re declining a renewal based on performance or compliance issues.

Implied Terms: Built In, Whether You Like It or Not

The Act introduces a suite of implied terms into all commercial leases—some of which apply automatically, others which can be negotiated out.

Implied terms include:

• An obligation for the tenant to pay rent on time (non-negotiable),
• Possible rent abatements for premises damage (negotiable, but only if explicitly dealt with).

Heads up: Your lease might not be as comprehensive as you think. A review of your documents is the only way to ensure you’re not unknowingly bound by terms you didn’t draft.

Selling Tenanted Commercial Property? Read This First

Planning to sell a tenanted commercial property? Under the Act:

• You must provide a Seller Disclosure Statement (in the prescribed form) before contracts are exchanged.
• The disclosure must cover things like leases, encumbrances, contamination, and levies.
• Buyers of properties worth $10 million or more can waive the requirement—but it has to be their call.

Failing to disclose properly can give the buyer a termination right—no matter how far along the deal is.

Also critical: Once the property changes hands, leases run with the land—but tenants aren’t obliged to start paying rent to the new landlord until they’ve been formally notified (usually via an Attornment Notice). If that step is skipped, the new landlord might be out of pocket with little recourse.

What Should Landlords Do Now?

With 1 August 2025 around the corner, landlords should:

Review lease templates and update them to reflect the new rules,

Tighten up internal processes for assignment requests and breach notices,

Train property managers and staff on the new deadlines and disclosure requirements,

Review past leases to understand where new obligations now override old clauses.

At Jaide Law, we work closely with commercial landlords to ensure you’re not only compliant—but protected. We help draft assignment agreements, review leasing documentation, and guide you through this new legal landscape with practical, plain-English advice.

Need to Prepare for the New Act? Let’s Talk

Whether you’re managing a single lease or an entire portfolio, Jaide Law can help you navigate the Property Law Act 2023 (Qld) with confidence. If you’re looking for the best property law firm for commercial leasing and transactions in Queensland, we’re here for you.

Reach out to a trusted property lawyer QLD today—we’ll make sure you’re ready for the changes and not caught off guard when August rolls around.

Disclaimer – We know most of you get this, but just to be clear, the information above is general and doesn’t consider your unique situation. Please don’t rely on it as a substitute for professional advice. We strongly encourage you to seek appropriate guidance for your specific needs.