As the NSW Land Registry Services (LRS) continues its on-going digital transformation of all property transactions, electronic leases or e-leasing can now be submitted through the property exchange platform PEXA. This means representatives of landlords and tenants now have the ability to prepare, sign and register most leases (some exceptions apply) electronically in NSW, over whole or part of a property. This addition will likely reduce the time it takes to register leases in NSW as well as promote the move towards the electronic signing of leases.
How does the new e-leasing system work?
The following leases can now be registered electronic via PEXA:
- Standalone leases;
- Consecutive leases in a series;
- Leases in combination with transfers and mortgage discharges.
Once a workspace is created on PEXA, users must invite the other party to the lease, this will either be the landlord or the tenant depending on who created the workspace. The workspace replaces the standard LRS lease cover page by directing the Landlord to answer a series of questions pertaining to the details of the lease. Mortgagee’s consent can also be provided electronically once the mortgagee is invited to the workspace. This significantly reduces the time taken to arrange and finalise mortgagee consent.
The lodgement fees associated with registering a lease will no longer apply as the electronic system has adopted the standard PEXA registration fee. The price difference between the previous LRS lodgement fee and the new PEXA fee is only marginal with the PEXA Fee totaling $42.24 for a single lease.
Limitations on the new e-leasing system?
It is worthwhile noting that the new e-leasing system does come with some limitations. Currently the system does not support the drafting of special conditions within the workspace, but rather requires them to be drafted separately and uploaded to the workspace. Further to this, Surrenders and Variations of Lease are not yet available through the platform, although this function is estimated to become available later in the year.
Moreover, users can still receive requisitions if there is an issue with a submission. This may cause the lease to be subject to a physical review at the LRS, if it does not meet the necessary requirements.
Key take away?
There is not doubt the legal sphere is currently undergoing a digital transformation, whilst many practices may wish to ignore the rapid changes occurring within this space, Marsdens Law Group embraces this step towards complete digital leasing, as the increased efficiency has undeniable time benefits to not only the firm but also our clients.
If you have any queries in relation to the above related matters, please do not hesitate to contact Wade Thomas on firstname.lastname@example.org or Ben Wong on email@example.com or by phoning (02) 4626 5077.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.