Leasing Strata Commercial Property NSW: What Business Owners Need to Know

Leasing strata properties is more complex than leasing a freestanding property

Leasing commercial space in a strata building can feel straightforward until you realise there's an entire owners corporation with decision-making authority over your fitout, your signage, and even basic repairs. I work with business owners who've signed leases assuming they're dealing with their landlord, only to discover that critical approvals and maintenance issues run through a separate body with its own meeting schedules and priorities.

The challenge isn't just understanding your lease - it's understanding how strata legislation affects what you can actually do with the premises and who's responsible when something needs fixing. Your landlord might be obligated to maintain the property under the lease, but if the issue involves common property - which includes most of the building's structure - the owners corporation controls the repair timeline and process.

This guide explains the practical considerations when leasing commercial property in a strata scheme in NSW. We'll look at how strata levies work, who approves your fitout and alterations, what happens when repairs cross into common property territory, and how to set up your lease to reduce conflicts down the track.

Key Takeaways

Understanding strata commercial leasing:

  • Dual authority structure: Your lease is with the landlord, but the owners corporation controls common property, approvals for alterations, and building-wide decisions. This creates a layer of complexity not present in non-strata leases.
  • Strata levies affect your costs: Landlords typically pass strata levies to tenants as outgoings. These levies cover common area maintenance, building insurance, sinking fund contributions, and can increase through special levies for major repairs or building upgrades.
  • Consent requirements multiply: Fitout work, signage, and even minor alterations often require both landlord approval (under the lease) and owners corporation consent (under strata by-laws), creating potential delays in your business setup.
  • Repair responsibility splits: When something needs fixing, determining who's responsible - landlord or owners corporation - depends on whether it's lot property or common property. This distinction isn't always obvious and can cause frustrating delays.
  • By-laws impose restrictions: The strata scheme's by-laws can restrict business hours, noise levels, signage, vehicle access, and use of common areas in ways that might not be evident from reading just your lease document.
  • Timeline differences matter: Owners corporation decisions typically require committee meetings and formal resolutions, meaning approvals and repairs that would be straightforward with a single-owner building can take significantly longer in strata schemes.

Tips for Business Owners

Invest time in understanding the strata scheme before you sign. Request copies of the by-laws, recent meeting minutes, financial statements showing current levies, and any records of special levies or disputes. Ask specific questions about approval processes for the fitout work you're planning. Ensure your lease clearly defines which outgoings you're responsible for and how strata levies are calculated and passed on. Work with a lawyer who understands both commercial leases and strata schemes to review the lease and strata documents together - this combined analysis often reveals issues that wouldn't be apparent from reviewing just one or the other.

Understanding Commercial Property in Strata Schemes

What Makes Strata Commercial Property Different

When you lease commercial space in a strata building, you're entering into a lease for a specific lot within a larger scheme. The building itself - walls, roof, common areas, essential services - is owned collectively by all lot owners through the owners corporation. Your premises are just one lot within this shared structure.

This matters because your landlord doesn't have complete control over the building. The owners corporation governs common property and has authority over anything that affects the building's structure or shared facilities. Your lease might say the landlord is responsible for maintaining the premises, but if that maintenance involves common property, the owners corporation must approve and often carry out the work.

The distinction creates practical complications. If your air conditioning unit needs replacing and it's attached to or affects the building's structure, that likely requires owners corporation consent. If you want external signage for your business, you're asking for permission to use common property, which means owners corporation approval regardless of what your landlord has agreed to.

Common Property vs Lot Property

The line between common property and lot property determines who's responsible for what.

Common property typically includes:

  • Building structure (external walls, roof, floor slabs, loadbearing walls)
  • Common areas (lobbies, corridors, stairwells, lifts)
  • Essential services infrastructure (plumbing, electrical systems, HVAC systems that serve multiple lots)
  • External building features (facades, windows, external doors)

Lot property typically includes:

  • Interior spaces within your premises
  • Non-structural internal walls and finishes
  • Internal fixtures you've installed
  • Interior fit-out elements

The challenge is that many repairs and alterations cross this boundary. Drilling into a wall to mount equipment? That's affecting common property. Installing new electrical outlets? Might involve common property wiring. Replacing ceiling tiles? Could affect common property if they're part of the building's fire protection system.

This is why strata commercial leases need specific clauses addressing who handles what when work involves both lot and common property.

The Owners Corporation's Role

The owners corporation manages the strata scheme and has statutory obligations under the Strata Schemes Management Act 2015 (NSW). For tenants, the most relevant aspects are:

Approval authority: The owners corporation must approve alterations that affect common property or breach by-laws. This includes most fitout work, signage, and modifications to building services.

Maintenance responsibility: The owners corporation must properly maintain and repair common property. This sounds straightforward but becomes complicated when repairs are needed urgently and the owners corporation's decision-making process moves slowly.

By-law enforcement: The owners corporation enforces scheme by-laws, which can restrict noise, operating hours, waste management, vehicle access, and use of common areas. These restrictions might not be immediately apparent from your lease.

Levy collection: The owners corporation collects levies from lot owners to fund common property maintenance, building insurance, sinking fund contributions, and operational costs. Your landlord will typically pass these costs to you.

Strata Levies and Outgoings

How Strata Levies Work

Strata levies are quarterly contributions from lot owners to fund the owners corporation's expenses. They're split into administrative fund levies (regular maintenance and operations) and sinking fund levies (major repairs and capital works).

For tenants, strata levies matter because commercial leases typically include them as recoverable outgoings. Your rent might be one amount, but your total occupancy cost includes your share of the building's strata levies.

The lease should specify:

  • That strata levies are included in outgoings
  • How your outgoings percentage is calculated (usually based on lot entitlement or floor area)
  • Whether you pay actual levies or estimated amounts with reconciliation
  • How special levies for unexpected major works are handled

Special Levies and Cost Increases

Special levies are additional contributions levied when the sinking fund doesn't cover major repairs or improvements. These can be substantial - roof replacement, facade repairs, lift upgrades, building code compliance works.

This is where tenant-friendly leases differ significantly from landlord-friendly ones. Many landlord-prepared leases include special levies in recoverable outgoings, meaning you'd pay 100% of any special levy raised during your tenancy. From a tenant's perspective, this creates exposure to potentially significant costs for building works you have no control over.

A well-drafted lease from a tenant's perspective will typically:

  • Exclude special levies from recoverable outgoings entirely, making them the landlord's responsibility
  • If special levies must be included, cap your contribution to a specific dollar amount or percentage increase
  • Distinguish between special levies for urgent repairs versus planned capital works
  • Give you termination rights if special levies for major works substantially disrupt your business

The key negotiation point is whether major building works should be your cost exposure as a tenant or the landlord's investment in maintaining their asset.

Understanding Your Levy Exposure

Before signing, confirm the current quarterly levy amount for the lot and how it's passed on to you. If special levies are included in your outgoings, ask whether any are currently in place or planned.

The main focus should be ensuring your lease clearly caps or excludes special levies rather than conducting extensive strata financial due diligence. Your landlord bears the investment risk in the building - your concern is knowing what your committed outgoings will be and that you're not exposed to unpredictable building costs.

Fitout, Alterations and Approvals

The Dual Approval Process

Most commercial fitouts in strata buildings require approvals from both your landlord and the owners corporation. Your lease grants you the right to occupy the premises, but it doesn't automatically give you the right to alter common property or breach strata by-laws.

The typical approval path is:

  • Design your fitout with clear documentation of all works
  • Seek landlord consent under the lease terms
  • Submit the same plans to the owners corporation for approval
  • Obtain any required development consent if works are substantial
  • Proceed with works only after all approvals are in place

This process takes longer than obtaining just landlord consent. Owners corporation approvals require committee consideration, formal resolutions, and sometimes general meeting votes for significant works.

Common Fitout Issues in Strata Buildings

Structural alterations: Any work affecting loadbearing walls, floor slabs, or building structure requires both landlord and owners corporation consent. The owners corporation typically requires engineering certification that the work won't compromise building integrity.

Building services modifications: Connecting to or modifying electrical, plumbing, HVAC or fire protection systems usually involves common property. Owners corporations often require licensed contractors and final certification that building services remain compliant.

Acoustic and fire protection: Many strata buildings have specific requirements for maintaining acoustic and fire separation between lots. Your fitout can't compromise these protections, which might limit your design options.

External signage: Any signage visible from outside your premises typically requires owners corporation approval as it affects common property or building appearance. By-laws often specify size, location, and design standards for signage.

Making Alterations Work in Practice

Start the approval process early. If your business relies on specific fitout elements - commercial kitchen, retail shopfront, soundproofed meeting rooms - confirm feasibility with both landlord and owners corporation before committing to the lease.

Consider including conditions precedent in your lease that make it subject to obtaining necessary owners corporation approvals for your planned fitout. This protects you if the owners corporation refuses consent or imposes conditions that make your business model unviable.

Ensure your lease clearly states:

  • What alterations require landlord consent only vs combined consents
  • Timeframes for the landlord to respond to consent requests
  • Who pays for obtaining owners corporation consents and any required reports
  • Your obligations when the owners corporation imposes conditions on approval

Repairs, Maintenance and Responsibility

When the Landlord Can't Fix It

Commercial leases typically make the landlord responsible for maintaining the premises in good repair and keeping essential services operational. In strata buildings, this obligation becomes complicated when the repair involves common property.

If the air conditioning fails and the unit is located in common property, the owners corporation must arrange the repair. Your landlord might be liable to you under the lease for the disruption to your business, but they can't simply fix the problem without owners corporation involvement.

This creates practical issues:

  • Owners corporations work on committee meeting schedules, not tenant emergency timelines
  • Approval for urgent repairs might require special meetings or urgent resolutions
  • Contractors must be approved by the owners corporation
  • Cost recovery for repairs might be disputed between landlord and owners corporation

Rent Abatement During Repairs

When common property repairs make your premises unusable or substantially interfere with your business, you might have rights to rent abatement under your lease. However, enforcing this against your landlord can be complicated when they're not the ones delaying the repair.

Your lease should address:

  • Rent abatement triggers when premises are unusable due to common property repairs
  • Notice requirements to the landlord about repair issues
  • Timeframes for repairs before abatement rights arise
  • Whether abatement also applies to outgoings
  • The landlord's obligations to pursue the owners corporation for prompt repairs

The challenge is balancing your need for functional premises with the reality that strata repair processes simply take longer than single-owner building repairs.

Damage to Common Property

If your business operations damage common property - water leak from your premises, forklift damage to common area floors, alterations that affect building structure - responsibility for repairs typically falls on your landlord as the lot owner, who will then seek to recover costs from you under the lease.

The lease should clearly state:

  • Your liability for damage to common property caused by your use
  • Insurance requirements that cover potential damage to common property
  • Indemnity provisions protecting the landlord from owners corporation claims
  • Make-good obligations that extend to any common property you've altered with approval

Strata By-Laws and Business Operations

Understanding By-Law Restrictions

Every strata scheme has registered by-laws that govern use of lots and common property. These by-laws can impose restrictions beyond what's in your lease, and you're legally obligated to comply with them even though you're not a lot owner.

Common by-law restrictions affecting commercial tenants:

  • Operating hours and noise limits
  • Waste management and storage requirements
  • Vehicle access, loading zones, and parking allocation
  • Use of common areas for deliveries or customer access
  • Restrictions on signage, awnings, or external modifications
  • Prohibitions on certain business uses (e.g., food preparation, mechanical repairs)

By-laws are binding even if your lease doesn't specifically reference them. A lease clause should require you to comply with by-laws and confirm you've received and reviewed a current copy.

When By-Laws Conflict with Your Business Needs

Issues arise when by-laws restrict business operations in ways that weren't apparent during lease negotiations. A restaurant tenant might discover by-laws limiting cooking odours or extraction systems. A retail tenant might find restrictions on after-hours access for stock deliveries.

Before signing, request:

  • Current registered by-laws for the strata scheme
  • Any proposed by-law amendments under consideration
  • Recent owners corporation meeting minutes showing by-law enforcement actions
  • Confirmation from the landlord about any existing by-law breaches or disputes

If your intended use conflicts with by-laws, explore whether the owners corporation would consider amendments. Some schemes are flexible if proposed changes don't affect other owners. Others are rigid, particularly in mixed-use buildings with residential and commercial lots.

By-Law Changes After You've Signed

The owners corporation can amend by-laws through special resolution at a general meeting. This means restrictions could be introduced or tightened after you've commenced your lease.

Your lease should address:

  • What happens if new by-laws materially affect your permitted use
  • Whether you have termination rights if by-law changes make your business unviable
  • The landlord's obligation to notify you of proposed by-law changes
  • Your right to attend owners corporation meetings or make submissions about proposed changes

Real-World Example: When Strata Approval Delays Business Opening

Consider a medical practice signing a lease for a ground floor strata lot. The business needed to install soundproofing, modify the existing bathroom for accessibility compliance, and replace the front door with an automatic entry system for patients with mobility issues.

The landlord reviewed the plans and provided consent within the agreed timeframe. However, when the plans went to the owners corporation, the building manager flagged concerns about the automatic door affecting building security and the bathroom modifications potentially impacting the building's plumbing system.

The owners corporation required additional engineering reports on the plumbing changes and wanted the automatic door specification amended to integrate with the building's security system. This pushed the approval timeline from an expected 3 weeks to nearly 3 months, delaying the practice's opening and causing it to miss its planned start date.

The situation illustrated several strata leasing realities. The landlord had acted appropriately and efficiently, but couldn't override the owners corporation's requirements. The fitout plans that seemed straightforward involved common property elements that triggered additional scrutiny. The approval timeline that worked for a single-owner building didn't account for strata committee meeting schedules and formal resolution processes.

In this case, the lease hadn't included any condition precedent for owners corporation approval or provisions for delayed commencement dates due to approval delays. The tenant bore the cost of the delay and the additional reports required by the owners corporation.

This type of situation is why early engagement with the owners corporation - before signing the lease - helps identify potential approval issues and realistic timelines.

Action Summary & Next Steps

Clear Action Items for Business Tenants

Before signing a strata commercial lease:

  • Request and review current by-laws, financial statements, meeting minutes, and levy history
  • Identify all fitout work requiring owners corporation approval and start that process early
  • Confirm in writing how strata levies are calculated and passed on to you
  • Verify whether any special levies or major works are planned that would increase your outgoings
  • Check whether your intended business use complies with by-laws and any use restrictions

Ensure your lease addresses:

  • Clear definition of what's included in outgoings and how strata levies are recovered
  • Approval processes for alterations and who pays for obtaining owners corporation consents
  • Rent abatement provisions if common property repairs affect your business operations
  • Your obligation to comply with by-laws and receive updates when they change
  • What happens if the owners corporation changes by-laws in ways that affect your business

Red Flags and Warning Signs

Watch for these issues before committing:

  • Strata scheme with history of disputes, litigation, or special levies for defects
  • By-laws that conflict with or restrict your intended business use
  • Recent or planned major works that will cause disruption or trigger special levies
  • Landlord unwilling to include conditions precedent for owners corporation approval
  • Lease that doesn't clearly address the split between landlord and owners corporation responsibilities

This is urgent if:

  • You've discovered by-law restrictions after signing but before fitout
  • The owners corporation is delaying approval for essential fitout work
  • Common property repairs are making your premises unusable and rent abatement isn't addressed
  • You're being charged for special levies that weren't disclosed before you signed
  • The owners corporation is enforcing by-laws differently than described during negotiations

Ready to Get Expert Legal Guidance?

Leasing commercial space in a strata building involves considerations that don't exist in single-owner properties. Let's work through your specific situation together - whether you're reviewing a proposed lease, negotiating with a landlord and owners corporation, or addressing issues that have emerged after signing.

I help business owners and commercial tenants understand what they're committing to in strata commercial leases, negotiate terms that reduce your exposure to strata-specific risks, and resolve disputes when they arise.

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5 Critical Questions Before Leasing Commercial Strata Property

Essential questions covering levies, approvals, repairs, by-laws and owners corporation consent for commercial strata leases.
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Can I rely on email exchanges instead of a formal contract?

Email exchanges can create binding contracts if they contain clear agreement on all essential terms. The challenge is that email conversations often reference different versions of proposals, include conditional acceptance, or leave key terms "to be determined." If you're relying on emails as your documentation, make sure one message clearly sets out all essential terms and the other party's response clearly accepts those terms without conditions. Better still, document the agreed terms in a single clear document that both parties sign.

What should I do first when a client doesn't pay an invoice?

Start by checking your contract to understand what payment terms were agreed and what rights you have. Then send a professional written reminder referencing the specific invoice, due date, and your payment terms. Keep records of all communication. If that doesn't work, send a firmer follow-up outlining next steps. Most payment issues resolve with clear, documented communication before escalation is necessary.

How much does trade mark registration cost in Australia?

The base filing fee with IP Australia starts around $330 for a single class filed online. Professional fees for trade mark searches, application preparation, and examination response typically range from $1,500 to $3,500 depending on complexity.

Do I need different terms for digital products versus physical goods?

Yes, digital products require different refund and access provisions. Physical goods have straightforward return processes—customers send items back. Digital products can't be "returned" once downloaded or accessed. Your terms should address how you handle refunds for digital products, what access limits apply, and what happens if the product is defective. Australian Consumer Law allows some flexibility for digital products, but you need to be clear and fair in how you apply these provisions.

Do I need a lawyer to create a service agreement or can I use a template?

Templates provide a starting point, but they need significant customisation for your specific services. Generic templates often include inappropriate clauses or miss provisions critical for your business model. I work with service providers to develop agreements that are practical, enforceable, and aligned with how they actually work.

Do I need to register on the PPSR if my contract includes retention of title?

Yes, in most cases. Having retention of title terms in your contract creates a security interest under the PPSA, but that interest needs to be registered on the PPSR to be enforceable, particularly if your customer becomes insolvent. The contract creates the right, but registration is what makes it work when you need it. I can help you understand whether your specific contract terms create a registrable security interest and establish a process for registering new supplies.

Can I use a collaboration agreement template I found online or do I need professional documentation?

Templates provide a starting point, but collaboration agreements should be tailored to your specific project and business structures. If significant revenue, intellectual property, or ongoing client relationships are involved, professional guidance helps ensure the agreement addresses your actual commercial arrangement.

How do I know if someone should be a contractor or an employee?

Look at how the relationship actually operates, not just what you call it. Genuine contractors control how they complete work, provide their own equipment, work for multiple clients, and bear commercial risk. If you control their working hours, provide equipment and training, integrate them into your business structure, and they work exclusively for you, the relationship may be employment regardless of what the contract says. I can help you assess your specific situation and structure arrangements appropriately.

Do I need a lawyer to prepare a confidentiality agreement or can I use a template?

Templates provide starting points but rarely suit your specific circumstances without modification. Confidentiality agreements need to define precisely what information you're protecting, how it can be used, and how long obligations last. Generic templates often include vague definitions that make enforcement difficult or omit provisions that matter for your particular situation. Having an agreement reviewed before use ensures it actually protects what matters to you.

Do I need a lawyer to draft standard business terms or can I use a template?

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Do I really need website T&Cs if I'm just a small business?

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Can I offer incentives for customers to leave reviews?

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How does a shareholders agreement differ from a company constitution?

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Can I use a lease template if I modify it for my property's characteristics?

Modifying a template can address some issues, but there's significant risk. Templates don't prompt you to think about your property's characteristics and how those should influence lease terms. You might modify rent and term clauses, but miss how shared systems should affect maintenance provisions, how aging equipment should shape repair obligations, or how unmetered services should influence outgoings. Having a commercial lease lawyer review your modified template can identify these mismatches - but proper drafting that accounts for property characteristics from the start is often more effective.

How are strata levies calculated for commercial tenants?

Strata levies are calculated based on your lot's unit entitlement, which is determined by factors like lot size, value, or use. As a tenant, you'll typically pay the proportionate share of levies that the landlord passes on to you as outgoings under the lease. Your lease should specify whether you pay based on the lot's unit entitlement percentage or a floor area calculation. Always review the strata scheme's levy history to understand what you'll actually be paying beyond base rent.

Does including "subject to contract" make a Heads of Agreement non-binding?

"Subject to contract" language supports non-binding intent but doesn't guarantee it. Courts look at the document as a whole, including whether all essential terms are agreed, how the parties described their obligations, and how they behaved afterward. For strongest protection, combine this language with explicit statements that the document isn't binding.

What's the difference between base rent and outgoings in commercial leases?

Base rent is the fixed amount you pay for occupying the premises - it's the core rental component. Outgoings are additional costs for operating and maintaining the property, such as council rates, insurance, repairs and common area costs. This distinction matters because each component is calculated, reviewed and recovered differently, and understanding both is essential for accurately budgeting occupancy costs.

Can I avoid stamp duty by gifting property to my child?

No, stamp duty in NSW is calculated on the market value of the property regardless of the amount paid. Even gifts attract full stamp duty liability unless specific exemptions apply. This is a common misconception that can result in unexpected costs.

How quickly can business agreements be documented properly?

For straightforward arrangements with established templates, documentation can be completed in a few days. More complex deals or those requiring negotiation on risk provisions might take 1-2 weeks. The timeline depends on how quickly both parties can review and approve terms, not just drafting time. If you need to move quickly, focus on getting core terms documented first, with more detailed provisions following shortly after. Let's discuss your specific timeline.

Can I stop work if a client hasn't paid for previous phases?

If your contract includes a suspension clause—stating that work can be paused if invoices remain unpaid—then yes, you can stop work. Without this provision in your contract, suspending work might put you in breach of contract yourself. This is why payment terms that specifically address suspension rights are so valuable. Let's discuss whether your current contracts give you this protection.

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What's the difference between a Privacy Policy and Website Terms of Use?

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What happens if my service agreement is too one-sided?

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How long does PPSR registration last?

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How much detail should a collaboration agreement include and can it be too formal for a friendly collaboration?

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What happens if I engage someone as a contractor but they're later deemed an employee?

Your business may face claims for unpaid superannuation, annual leave, and other employment entitlements from when the relationship began. The Australian Taxation Office can pursue unpaid PAYG withholding and superannuation guarantee charges, including penalties and interest. Fair Work protections would also apply, meaning you'd need just cause for any termination and would face potential unfair dismissal claims. This is why getting the structure right initially matters—remedying misclassification retrospectively is expensive and complicated.

How long should confidentiality obligations last?

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How do I make sure my standard terms are actually enforceable?

Enforceability requires several elements: your terms must be brought to the client's attention before they accept your service, they need to be clearly worded, and they can't be unconscionable or unfair under consumer law.

Can I just use a free template I found online?

Free templates provide starting points but rarely fit your specific business model. A template designed for e-commerce won't suit professional services. One created for US businesses won't address Australian law requirements. Templates often include irrelevant clauses while missing provisions you actually need. The better approach is having terms drafted to match how your site actually works.

What if I remove a review that's genuinely false or defamatory?

You can and should remove content that's defamatory, false, or violates your documented moderation policy. The key is having that policy documented and applying it consistently. For potentially defamatory content, consider seeking legal advice before removal as defamation has specific legal meanings.

Can we create a shareholders agreement after the company is already operating?

Yes, shareholders agreements can be implemented at any time, though it's easier when done early. Existing shareholders will need to agree to the terms and sign the agreement - this can be straightforward if everyone recognizes the value, or challenging if some shareholders see proposed terms as disadvantaging them. It's worth implementing even for existing companies, particularly before bringing in new shareholders, planning for exits, or addressing emerging governance issues.

How do I know which property characteristics should affect my lease terms?

This requires understanding how your property actually functions. Key characteristics to consider: Are building systems shared or separate? What's the age and condition of major equipment? Are utilities separately metered? How do common areas work and who benefits from them? Are there structural, heritage, or compliance constraints? What's the actual current condition? A commercial lease lawyer helps identify which characteristics matter for lease drafting and how provisions should be tailored to your property's operational realities.

Who approves fitout work - my landlord or the owners corporation?

You need approval from both. Your lease governs what alterations require landlord consent, but any work affecting common property or potentially breaching by-laws also requires owners corporation approval. Common property includes building structure, shared services, and external elements. In practice, this means most commercial fitouts need dual approval, which takes longer than single-landlord approval processes. Start the approval process early and confirm requirements with both parties before committing to contractors.

Can some clauses be binding while others aren't?

Yes, and this is common practice. You can specify that certain provisions - typically confidentiality, exclusivity, good faith negotiation, and cost-sharing arrangements - are immediately binding, while commercial terms remain non-binding until formal contracts are signed. The key is clearly identifying which clauses are binding.

How specific should make-good obligations be in a commercial lease?

Make-good obligations should be specific enough that both landlord and tenant would reach the same conclusion about what's required. Better practice is to itemise specific requirements: repainting (including how many coats and what areas), carpet condition or replacement, fixture repairs, removal of tenant installations, and any specific finishes or standards that apply. We can work through what specific make-good provisions make sense for your situation.

What's the difference between gifting property and selling it to family at market value?

From a stamp duty perspective, both approaches result in the same liability. However, selling at market value may provide better asset protection and clearer documentation of the transaction terms. The CGT implications are also the same in both scenarios.

What happens if we start work before documentation is finalized?

Starting work before documentation is finalized creates risk for both parties. If terms haven't been clearly agreed, you might find yourselves disputing what was actually agreed to when it's time to perform or pay. If you genuinely need to start before full documentation is ready, at minimum document the core commercial terms in writing—scope, payment, timing—and clearly state that detailed terms will follow. This at least creates a framework both parties have agreed to.

Do I have to deliver completed work if the client hasn't paid?

It depends on your contract. If your terms state that deliverables won't be transferred until payment is received, you have a clear right to withhold them. If your contract is silent on this, the situation becomes less clear—you might be obligated to deliver even if payment hasn't been made. The best approach is having this documented in your terms from the start.

What happens if someone else applies for a similar trade mark after I register?

Once you're registered, later applications for confusingly similar marks in your classes will likely face examination objections based on your earlier registration. Your registration date establishes your priority, and later applicants need to work around your registered mark.

Can I use terms and conditions templates from overseas websites?

This rarely works well. Terms from US or UK websites are written for different legal systems and don't address Australian Consumer Law requirements. They often try to exclude rights that can't be excluded in Australia, or include provisions that aren't enforceable here. It's better to have terms written for Australian law that reflect your actual business practices. We can work together to create terms that properly protect your business within the applicable legal framework.

Can I have different service agreements for different types of clients or services?

Yes, and this often makes commercial sense. You might have different agreements for corporate versus individual clients, or different terms for ongoing retainers versus one-off projects. The key is maintaining consistent core protections whilst allowing flexibility for different relationship types.

What happens if I register with incorrect details?

This is a real concern because defective registrations can be challenged and may not be enforceable. The PPSA requires specific information including correct debtor details (legal name, ABN/ACN), collateral description, and secured party details. If you get these wrong, your registration may be considered seriously misleading and therefore defective. It's worth taking the time to get it right or working with someone who regularly handles PPSR registrations to ensure accuracy.

What happens if we start collaborating without an agreement and want to document things later?

You can create an agreement at any point, though it's simpler to address expectations before work begins. If documenting an existing collaboration, focus on clarifying the current arrangement, who owns what's been created so far, and what terms will govern the collaboration going forward.

Do I own the intellectual property my contractor creates if I'm paying them?

Not automatically. Under Australian copyright law, the person who creates original work owns the copyright unless there's an agreement that IP transfers to someone else. This is why explicit IP clauses are essential—they ensure work you're paying for becomes your business asset rather than remaining the contractor's property. I can help you draft IP provisions that properly transfer ownership and address any background IP the contractor uses.

What happens if someone accidentally discloses confidential information?

Intent usually doesn't matter for breach—your confidentiality agreement likely establishes strict obligations regardless of whether breach was deliberate or careless. However, remedies might differ. Accidental disclosure to a single individual might warrant requiring immediate steps to retrieve information and prevent further distribution, while deliberate disclosure to competitors might justify seeking injunctive relief and damages.

What's the difference between standard terms and a contract?

Your standard terms are the operational clauses that apply across all your client relationships. They work together with project-specific details to create the complete contract. Think of standard terms as your operational framework.

What's the difference between T&Cs and a privacy policy?

Website T&Cs govern the relationship between you and users—what they can do on your site, what you're responsible for, payment terms, and dispute resolution. A privacy policy specifically addresses data collection, use, storage, and user rights regarding personal information. Most businesses need both, and they should be consistent with each other.

Am I responsible for reviews on Google or Facebook that I don't control?

You're not automatically responsible for every review on third-party platforms. However, if you're actively using these platforms, monitoring them, and responding to reviews, you may need to take reasonable steps about misleading content you become aware of.

What happens if the shareholders agreement conflicts with our company constitution?

The company constitution generally takes precedence as the governing legal document for the company. However, shareholders agreements operate as binding contracts between shareholders personally. If conflicts exist, you'll want to amend one document to align with the other. Well-drafted shareholders agreements include provisions stating that they're subject to and read in conjunction with the constitution to minimize conflict risks.

What happens if my lease terms don't account for my property's characteristics?

You get ongoing disputes about whether standard clauses actually apply to your situation. Every maintenance issue becomes an argument about responsibility given your property's specific systems and condition. Cost recovery disputes arise when outgoings provisions don't match how expenses occur. Alteration requests create friction when standard clauses don't address your constraints. Make-good expectations differ when generic terms don't account for actual age and wear. These disputes happen regularly when lease terms don't fit property realities.

What happens when repairs involve common property?

If a repair involves common property, the owners corporation is legally responsible for carrying out the work under the Strata Schemes Management Act. However, your lease likely makes your landlord responsible for maintaining the premises. This creates a situation where your landlord has the obligation to you, but must work through the owners corporation to fulfil it. Repairs can take longer as they require committee approval and the owners corporation's selected contractors. Your lease should address rent abatement if common property repairs make your premises unusable.

What happens if we disagree about whether our Heads of Agreement is binding?

This creates a dispute that may require court determination. Courts will examine the language used, whether essential terms are complete, evidence of parties' intentions, and how you both behaved after signing. This uncertainty is costly and time-consuming, which is why clear drafting matters.

What's the best approach to rent review clauses in commercial leases?

The best approach depends on your circumstances and risk appetite, but all review mechanisms must be unambiguous, mathematically workable and consistent with other lease terms. Fixed percentage increases provide certainty, CPI-linked reviews move with inflation, and market reviews can be more favourable in softening markets. Let's work through the options together to find a review mechanism that suits your circumstances.

How long does a transfer between family members typically take?

In my experience, these transfers typically take 6-8 weeks from documentation to registration, assuming all parties are ready to proceed and there are no complex title issues. The timeline can extend if we need to resolve taxation or family agreement matters.

Do simple business deals really need formal documentation?

The value and complexity of the arrangement should guide the level of documentation, but even simple deals benefit from clear written terms. Most business disputes I handle aren't about complex transactions—they're about straightforward arrangements where terms weren't documented clearly enough. The question isn't whether you need documentation, it's what level of documentation matches the risk and value of your specific deal. We can work through what makes sense for your situation.

What's the Personal Property Securities Register and when does it matter?

The PPSR is a national register where you can record security interests in personal property (including goods you've supplied on credit). If you supply goods and retain ownership until payment, registering on the PPSR gives you priority over other creditors if your client becomes insolvent. Without registration, you might lose your goods to other creditors even though technically you still own them. PPSR protection requires clear contract terms and proper registration before or shortly after delivery.

Do I need separate trade marks for my business name and logo?

This depends on how you use your branding. Many businesses register a word mark covering the business name in any presentation, and a device mark covering the specific logo design. Registering both provides comprehensive protection.

How often should I update my e-commerce legal documents?

Review your documents whenever your business model changes—adding new products, changing refund policies, moving to a new platform, or starting international sales. Also review when Australian Consumer Law or privacy legislation changes. At minimum, do an annual review to ensure your terms still match your operational reality. Terms that don't reflect how you actually operate create legal risk rather than reducing it.

How do I enforce my service agreement if a client breaches terms?

Enforcement options depend on the breach. For payment issues, you might suspend work, charge interest, or commence debt recovery. For scope breaches, your variation provisions create clear documentation about what's actually agreed. Having well-drafted terms makes enforcement considerably more straightforward.

Can I register retrospectively after goods have been delivered?

You can register at any time, but your priority position depends on when you register. If you're claiming a PMSI in inventory, you need to register within 15 business days after delivery to get super priority. If you register later, you'll still have a registered interest, but you'll only have priority from the date of registration—meaning anyone who registered before you will rank ahead. For this reason, establishing a process to register promptly after delivery protects each transaction properly.

How long should a collaboration agreement last and do we need to renew it for ongoing collaborations?

Collaboration agreements typically align with project timeframes. For ongoing collaborations without a defined end date, consider including an initial term such as 12 months with automatic renewal unless either party provides notice. Include terms for reviewing and updating the agreement periodically as circumstances change.

Can I stop a contractor from working for my competitors?

You can include restraint provisions in your contractor agreement, but they need to be reasonable to be enforceable. Courts balance your legitimate business interests against the contractor's right to earn a living. A well-drafted restraint might prevent a contractor from working for direct competitors in your specific geographic area or market segment for a reasonable period, particularly if they've accessed confidential information or trade secrets. Let's discuss what's reasonable for your specific situation.

Can confidentiality agreements prevent employees from working for competitors?

Not directly. Confidentiality obligations prevent disclosure of your confidential information, but they don't stop people from changing employers or working in the same industry. If you want to restrict where former employees can work, you need restraint of trade provisions, which are separate from and more complex than confidentiality obligations.

Can I update my standard terms for existing clients or do they only apply to new relationships?

Generally, you can't unilaterally change terms for existing relationships - changes require mutual agreement. New terms typically apply to new work or new engagements.

Where should my T&Cs appear on my website?

They should be easily accessible and visible at key user interaction points. Link to your T&Cs in your footer, but also ensure users see and agree to them before submitting forms, creating accounts, making purchases, or booking services. For e-commerce, require checkbox acceptance during checkout. For contact forms, include a statement about agreeing to your terms and privacy policy.

How detailed should my review moderation policy be?

Your policy should be specific enough that someone could apply it consistently. Rather than "we remove unhelpful reviews," say what makes a review unhelpful—for example, reviews containing profanity, reviews from non-customers, spam, defamatory content, or reviews that violate privacy.

Do all shareholders need to sign the shareholders agreement?

For the agreement to be effective, all shareholders should sign. Some agreements allow for new shareholders to be added by having them sign a deed of accession. If a shareholder refuses to sign, the agreement can still bind those who do sign, but it won't restrict the non-signing shareholder's actions. For this reason, shareholders agreements often include provisions making signing a condition of becoming or remaining a shareholder.

Can I use an old lease from a previous tenant if the property hasn't changed much?

Even if the physical property is similar, this creates problems. The property's condition has changed - equipment is older, fixtures show more wear, systems may have been modified. The previous tenant's needs were different, so provisions tailored to that tenancy may not fit. Cost structures have shifted. NSW leasing law evolves. Most importantly, your new tenant's business and operational needs are different - lease terms should account for how they'll actually use the property's characteristics, not how the previous tenant did.

Can strata by-laws restrict my business operations?

Yes. By-laws are legally binding on all lot owners and occupiers, including tenants. They can restrict operating hours, noise levels, waste management, vehicle access, and even certain business types. Review the current by-laws before signing your lease to confirm your intended use is permitted. Ask about any proposed by-law amendments and whether there's a history of by-law enforcement in the building. Your lease should require the landlord to provide you with current by-laws and any amendments during the lease term.

Do I need a lawyer to prepare a Heads of Agreement?

It depends on the complexity of your transaction and the consequences of getting it wrong. For significant transactions, complex commercial arrangements, or situations where you need certain obligations to be binding, legal guidance ensures your document matches your intentions. The cost of proper drafting is typically far less than the cost of later disputes.

When does a tenant's fitout become the landlord's property?

Whether tenant fitout becomes the landlord's property depends on both property law principles about fixtures and what the lease specifically provides. This matters because it affects who insures the fitout, impacts make-good obligations, affects valuation and finance, and impacts tax treatment. Your lease should clearly address fitout ownership to avoid complications.

Can I transfer part of my property to my child?

Yes, you can transfer a percentage interest in property to family members. This approach can help manage stamp duty and CGT liabilities while allowing you to retain some ownership and control. The same legal requirements apply to partial transfers.

How much should I expect to pay for business agreement documentation?

How much should I expect to pay for business agreement documentation?

Should I use a debt recovery agency or go straight to legal action?

Should I use a debt recovery agency or go straight to legal action?

Can I register a trade mark if I'm planning to use it but haven't started yet?

Can I register a trade mark if I'm planning to use it but haven't started yet?

Do my terms need to be accepted by customers before they can purchase?

Do my terms need to be accepted by customers before they can purchase?

Should my service agreement include confidentiality provisions?

Should my service agreement include confidentiality provisions?

What's the difference between a security interest and a PPS lease?

What's the difference between a security interest and a PPS lease?

Can one party end the collaboration early and what protection do I have if my collaborator withdraws?

Can one party end the collaboration early and what protection do I have if my collaborator withdraws?

What should I do if a contractor isn't meeting the agreed standards?

What should I do if a contractor isn't meeting the agreed standards?

Do mutual confidentiality agreements mean we're both equally at risk?

Do mutual confidentiality agreements mean we're both equally at risk?

My business model is changing - do I need to update my standard terms?

My business model is changing - do I need to update my standard terms?

How often should I update my website T&Cs?

How often should I update my website T&Cs?

Can I ask customers to remove or edit negative reviews?

Can I ask customers to remove or edit negative reviews?

How much does a shareholders agreement cost to prepare?

How much does a shareholders agreement cost to prepare?

What's the difference between retail and commercial leases under NSW law?

What's the difference between retail and commercial leases under NSW law?

How long does owners corporation approval take for commercial fitout?

How long does owners corporation approval take for commercial fitout?

How does this apply to retail leases in NSW?

How does this apply to retail leases in NSW?

How do I know if the permitted use clause is appropriate for my business?

How do I know if the permitted use clause is appropriate for my business?

What happens if my child can't afford the stamp duty on a property transfer?

What happens if my child can't afford the stamp duty on a property transfer?

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