The Queensland Government has recently amended the requirements for transferring leasehold land by introducing a new exemption from obtaining the Minister’s consent to the transfer.
Prior to this amendment, you could only transfer leasehold land if:
- you obtained the Minister’s consent to the transfer (and obtained a rental clearance certificate showing that no rent was owing in relation to the land and the Buyer provided a Statutory Declaration that it is aware of the condition of the leasehold land); or
- the land was a road licence and each of the following conditions were met:
- the licensee also owned freehold land adjoining the road licence;
- the freehold land and the road licence were each subject to a covenant providing that neither lot can be transferred without the other;
- both the road licence and the freehold land were transferred to the same person at the same time; and
- all charges owing to the State for the road licence were paid.
On 2 December 2019 the State Government introduced a new exemption which outlines that Ministerial Consent is no longer required for certain types of notified leasehold land, i.e.
- primary production leases in rental category 11 (which includes certain leases (including perpetual and term leases), licences and permits to occupy whose use is primarily for primary production);
- residential leases in rental category 12; and
- business and Government core business leases in rental category 13.
The Lease, however, must not be:
- issued for significant development and require a financial and managerial capability assessment; or
- subject to a:
- performance guarantee bond;
- deed of indemnity;
- mortgagee in possession; or
- sale by a mortgagee exercising a power of sale or have an appointed receiver/manager.
So that you don’t have to determine if your leasehold land meets the requirements for the new exemption, the Government has noted an Administrative Advice on the title to each lot of leasehold land that the exemption now applies to (recorded on the title on 2 December 2019). If this Administrative Advice has been recorded on the title to your leasehold lot, you now no longer need to apply to the Government for Ministerial Consent (and don’t have to complete any other documents in relation to the exemption).
If this new exemption (or the above road licence provisions) don’t apply to your leasehold lot, you will need to apply for and obtain Ministerial Consent before you can transfer the land. As it also takes the Government some time to process this application, you need to determine whether Ministerial Consent is required at the outset of your sale, and if it is required, ensure that you apply for it within sufficient time to obtain it before settlement.
If you would like further information on the transfer of leasehold land or need assistance with the sale of your rural property, please contact our Property Law team today on 1300 0368 736.
This publication has been carefully prepared, but it has been written in general terms and should be viewed as a broad guidance only. It does not purport to be comprehensive or to render advice. No one should rely on the information contained in this publication without first obtaining professional advice relevant to their own specific situation.