Quick Answer
A commercial lease registered on a NSW property title gives the tenant enforceable rights that survive any change of ownership. Before exchanging contracts, order a title search commercial title through TitleFinder, read every entry in the Second Schedule, and request each underlying instrument or plan. Missing a lease, caveat, or easement can delay settlement or leave you bound by terms you never negotiated.
How Commercial Leases Register on NSW Titles
In New South Wales, a commercial lease can be registered as an interest on the title folio. Once registered, the lease appears in the Second Schedule — the section that lists encumbrances, rights, and interests beyond basic ownership.
A registered lease is not merely a private contract between landlord and tenant. It binds anyone who later acquires the property. If you buy a property with a five-year lease still running, you step into the landlord's role. You cannot end the lease simply because you are the new owner.
What to Check, Document by Document
The Title Folio
The title folio is your starting point. It identifies the registered proprietor, confirms whether the title is Torrens or old system, and lists every registered interest in the Second Schedule — including leases, easements, covenants, and caveats.
When you order a Current Title search through TitleFinder ($74.50 AUD), you receive the current folio. Read the Second Schedule carefully. Every entry includes a dealing number. You need those numbers to request the full instrument later.
The Lease Instrument
The lease instrument contains the actual terms: rent, term length, options to renew, permitted use, and any restrictions on assignment. The folio entry alone will not tell you whether the tenant holds two further five-year options — only the instrument will.
If a lease appears on the folio, order the dealing using the listed dealing number. This is separate from the title search.
The Deposited Plan
The deposited plan defines the physical boundaries of the lot. For commercial strata lots, the strata plan shows unit boundaries, common property, and by-laws. For torrens title commercial properties, the deposited plan may reveal easement sites that the folio references.
If the Second Schedule refers to easements or covenants "as created in DP XXXXXX," order that plan.
Section 88B Instruments
A Section 88B instrument creates easements or restrictions that attach to a deposited plan at the time of registration. These instruments define the rights and burdens more precisely than the plan alone. If your title references a Section 88B instrument, order it alongside the plan.
Risk Areas: What Can Go Wrong
Strata Apartments
Commercial strata lots in NSW carry additional layers. The strata plan sets out unit entitlements, by-laws (including any restrictions on use or noise), and common property boundaries. Check whether the by-laws restrict your intended use. Also check whether the owners corporation has registered exclusive-use by-laws affecting your lot.
Order the strata plan and the by-laws separately. A title search commercial title alone will not show the full by-law register.
Torrens Title Homes
Many NSW commercial properties — freestanding retail or industrial sites — are torrens title. The risks are simpler than strata but still significant. Watch for easements for drainage or access across the lot, restrictive covenants limiting use, and registered leases to tenants you did not expect.
Easements
Easements on a commercial title NSW can prevent building extensions, block vehicle access, or compel you to maintain a shared driveway. The folio entry identifies the easement type and dealing number. The plan shows its physical location. Order both before settlement.
Caveats
A caveat on a commercial title property title New South Wales is a statutory warning that someone claims an unregistered interest. A caveat prevents registration of competing dealings but does not by itself create rights. Common sources include an unregistered leaseholder, a lender with an unregistered mortgage, or a party to a contract for sale.
If you see a caveat, order the caveat instrument to identify the caveator and the nature of the claimed interest. Decide early whether the caveat must be removed before settlement.
Old System Land
Old system land in NSW is not guaranteed by the state's assurance fund. Title is proved by a chain of deeds, not by a single folio. If the property is old system or still converting, you need conveyancing counsel experienced in this area — and you must trace the lease history through the deeds, not just the current folio.
Practical Checklist for NSW Commercial Title Review
- Order a title search commercial title through TitleFinder ($74.50 AUD)
- Read the Second Schedule for every registered interest
- Note each dealing number — lease, easement, caveat, covenant
- Order every referenced instrument and plan
- For strata: order the strata plan and by-laws separately
- For easements: match the folio entry to the plan location
- For caveats: identify the caveator and assess whether removal is required
- For old system land: instruct counsel to review the full deed chain
- Confirm whether any registered lease is current or expired
- Cross-check rent, term, and options against the vendor's disclosures
Document Comparison Table
| Document | What It Shows | When to Order |
|---|---|---|
| Current Title Folio | Ownership, all registered interests | Always — your starting point |
| Lease Instrument | Rent, term, options, permitted use | If a lease appears in the Second Schedule |
| Deposited / Strata Plan | Boundaries, easement sites, common property | If the folio references a DP number, or for strata lots |
| Section 88B Instrument | Easement and restriction details | If the folio references a Section 88B |
| Caveat Instrument | Caveator identity and claimed interest | If a caveat appears in the Second Schedule |
| By-laws Register | Use restrictions, exclusive use rights | For any strata title purchase |
When to Order Additional Documents
Order the title search before you sign or exchange. If the folio reveals interests you need to investigate, order the corresponding instruments immediately. Delays in obtaining instruments can push back settlement.
For strata lots, order the strata plan and by-laws at the same time as the title search. For old system land, engage a conveyancer familiar with deed-chain analysis before making any commitment.
This article is for general information only. Property decisions should account for your specific circumstances. Engage a qualified conveyancer or solicitor for advice tailored to your transaction.
Frequently Asked Questions
Can a commercial lease continue after I buy the property?
Yes. A registered lease on the title binds the new owner. You become the landlord under the existing lease terms. Check the lease instrument for remaining term, rent, and renewal options before exchanging contracts.
What is the difference between a registered lease and a caveat?
A registered lease creates a direct interest in the land. A caveat is a warning that someone claims an interest — it blocks other registrations but does not by itself create rights. Both appear in the Second Schedule. Both require separate instrument orders to understand their full effect.
Does a title search show unregistered leases?
No. A title search commercial title shows only registered interests in official property records. An unregistered lease may still be enforceable between the parties, but it will not appear on the title. Ask the vendor to disclose all current tenancy arrangements, including unregistered leases, and review the contract for sale warranties.
Order the right TitleFinder document
Use this guide as a reference, then order the actual record that answers your question:
- NSW Title Search — $69.90
- NSW Imaged Deposited Plan — $85.90
- NSW Imaged Documents — $91.80
If you are unsure, start with the current title search, then add the plan or instrument if the title points to one.
Need the title search? Use the TitleFinder product links above to order the current title, plan, instrument or state-specific property record you actually need.
