ignificant changes are on the horizon for both landlords and tenants of commercial leases. These updates form part of the sweeping reforms introduced by the Property Law Act 2023, which comes into force on 1 August 2025.

At Venus Law Corporation, we’ve broken down the key leasing reforms and what they mean for you.

✅ New Procedures for Lessor’s Consent

Under the new framework, the process for obtaining a landlord’s consent has been standardised.

Previously, this was governed solely by the terms of the lease — but now, section 142 of the Property Law Act 2023 introduces a clear, uniform procedure:

1️⃣ The lessee must give the lessor a proposal notice, setting out all required details and requesting consent.
2️⃣ The lessor may request additional information if required to make a decision.
3️⃣ The lessor must then issue a decision notice within 1 month (or longer if agreed), stating whether consent is granted, and if so, any conditions and reasons.

Importantly, the lessor must not unreasonably withhold consent.

If the lessor:

• Unreasonably withholds consent,

• Imposes unreasonable, unnecessary, or onerous conditions, or

• Fails to give a timely decision,

…the lessee may apply to the Court for relief.

This new process gives lessees greater certainty on decision timeframes and provides a streamlined pathway for dispute resolution without complex contract arguments.

✅ No More Keeping Guarantors on the Hook Forever

Personal guarantees are common in commercial leases — but under the new Act, that’s about to change.

Previously, landlords could keep previous tenants and guarantors liable indefinitely, even after the lease had been assigned multiple times.

From 1 August 2025, liability will end after one degree of separation. Here’s how:

1️⃣ Tenant A + Guarantor A – liable for Tenant A’s lease term.
2️⃣ Lease assigned to Tenant B – now Tenant B, Guarantor B, Tenant A and Guarantor A remain liable.
3️⃣ Lease assigned to Tenant C – liability passes to Tenant C, Guarantor C, Tenant B and Guarantor B only. Tenant A and Guarantor A are now released.

This reform creates a fairer balance of responsibility and prevents guarantors from being indefinitely tied to past obligations.

✅ Covenants Remain Enforceable

The Act clarifies that obligations and covenants under a lease remain enforceable after assignment or transfer — even if they’re not directly tied to the land itself.

Exceptions apply where a covenant:

• Is expressly personal between the parties,

• Is excluded from assignment or transfer,

• Is agreed to remain with the current lessee after assignment, or

• Is agreed to remain with the current lessor after transfer.

This clarity ensures that important terms continue to apply appropriately in future dealings.

✅ Protection for Lessees if the Lessor Refuses to Renew or Sell

Sections 163–167 introduce new safeguards for lessees when a landlord refuses to renew or sell the leased property.

Many commercial leases include options to:

• Renew the term, or

• Purchase the leased property.

In the past, landlords could refuse renewal based on minor breaches, such as a delayed rent payment.

Under the new Act, a formal process is now required:

The lessor must provide a notice in the approved form, which includes:

• The reasons for refusal (specific breaches);

• A statement that the lessee or a “designated person” (like a mortgagee or receiver) may apply to the Court for relief;

• That such an application must be made within 1 month; and

• A recommendation that the lessee obtain independent legal advice.

If the lessee does not apply within one month, the lessor may proceed with the refusal.

This procedure doesn’t prevent a landlord from refusing an option — but ensures fair warning, clear notice, and access to remedy for lessees.

✅ Lessor Must Give Notices to More Interested Parties

The new Act expands who must receive important lease notices.

Previously, many notices were only sent to the lessee. Now, “designated persons” — such as a mortgagee, receiver, or sub-lessee — must also be notified, ensuring that all parties with a financial or legal interest in the lease can take action if needed.

✅ What This Means for You

If you’re involved in commercial leasing — whether as a landlord, tenant, or property manager — the Property Law Act 2023 represents a major shift in how leases are managed.

From consent procedures to guarantee limits, renewal rights, and notice obligations, these reforms are designed to promote transparency, fairness, and accountability.

Starting 1 August 2025, every step under a commercial lease should be carefully reviewed to ensure compliance with the new statutory requirements.

⚖️ Need Expert Leasing Advice?

At Venus Law Corporation, we specialise in guiding clients through the evolving landscape of Queensland property law.

Whether you’re a landlord, tenant, or agent — we can help you:
✅ Understand your rights and obligations under the new Property Law Act 2023.
✅ Review your existing leases for compliance.
✅ Prepare for smooth transitions before the new laws take effect.

📞 Get in touch with Venus Law Corporation today to ensure your leasing practices are ready for 2025 and beyond.