Whether you’re negotiating new leases, advising on assignments, or supporting landlords and tenants through lease renewals or disputes, the new Property Law Act affects the framework. Our Commercial Law Senior Associate, Tobie Mitchell breaks down the five key changes agents need to know and the practical steps to take to protect your clients (and yourself) from compliance headaches.
The Property Law Act 2023 represents one of the most significant updates to property legislation in decades. Effective from 1 August 2025, real estate agents dealing with commercial properties and leasing ought to be mindful of the upcoming changes.
1. Greater Clarity on Lease Termination Rights
The Act introduces more structured notice requirements before a landlord can re-enter or terminate a lease due to a tenant’s breach.
For agents, this means:
- You should check and clarify any notice periods in existing leases.
- You may need to advise landlords to revisit their standard lease templates to ensure compliance.
- When assisting tenants, it’s important to flag any enforcement action timelines, as more formal steps may now be required.
2. Updated Rules for Lease Assignment and Subletting
The Act makes it clearer that a landlord must not unreasonably withhold consent to assignment or subletting. While this is a long-standing practice, it is now a legislative requirement. It also introduces time limits within which landlords must respond to a tenant’s request for consent.
Why this matters:
- Delays can now have legal consequences. If a landlord doesn’t respond within the statutory timeframe, they may be deemed to have consented.
- Agents managing assignments should help facilitate early communication between parties and prompt landlords to avoid accidental approvals.
3. Stronger Disclosure and Transparency Requirements
The new Act introduces a general duty of good faith and fair dealing in commercial leasing relationships. This can affect negotiations, especially around incentives, market rent reviews, and tenant works. Moving forward agents should;
- Document all discussions around lease incentives and fit-out contributions.
Encourage both landlords and tenants to be open and honest early, to minimise the risk of any post-signing disputes.
Aggressive negotiation tactics could also be seen as breaching the duty of good faith.
4. Codified Rent Review Mechanics
The Act tightens the legal enforceability of certain rent review provisions. Importantly, ratchet clauses (which prevent rent from falling) may now be unenforceable unless carefully drafted within new legislative parameters.
Action points:
- Agents should be mindful to review rent review clauses in existing templates and heads of agreements and remove any ratchet clauses.
- When negotiating new leases, explain to clients that some traditional clauses may need reworking to comply with the updated law.
5. Dispute Resolution Pathways Simplified
The Act introduces a more structured approach to resolving leasing disputes. While court access remains, there is greater emphasis on alternative dispute resolution (ADR), such as mediation or arbitration, especially for lower-value disputes.
Agents should be aware that:
- Parties may be required to attempt ADR before escalating to litigation.
Involvement in disputes may now involve supporting clients through non-court processes, such as assisting with document preparation for mediation.
Final Thoughts
The Property Law Act 2023 brings modern clarity to many aspects of commercial leasing, but it also introduces new compliance and procedural risks. Real estate agents who stay informed will be in the best position to guide their clients confidently and avoid missteps.
If you’re involved in commercial lease transactions, it’s a good time to:
- Review your standard documents and processes with legal input
- Educate your team on the changes
Stay proactive in helping your clients navigate the new leasing environment.
Attwood Marshall Lawyers – Trusted Property & Commercial Law Specialists in Your Corner
Navigating the changes introduced by the Property Law Act 2023 can be complex, but you don’t have to do it alone. At Attwood Marshall Lawyers, our Property and Commercial Law team is across the reforms and ready to support agents, landlords, and tenants through this transition.
Whether you need help updating lease templates, interpreting the new legislation, or advising clients on their rights and obligations, we provide clear, practical advice to keep your transactions on track.
Contact our Property and Commercial Law Department Manager, Jess Kimpton on direct line 07 5506 8214, email jkimpton@attwoodmarshall.com.au or call our 24/7 phone line on 1800 621 071.
