Agreement To Exclude Security Of Tenure Template for Australia

An Agreement To Exclude Security Of Tenure is a legally binding document that allows you and your landlord to waive the statutory rights that would normally give you protection regarding lease renewal and continuation. Under Australian law, tenants in retail and commercial leases typically have certain statutory rights to renew their lease or seek compensation when a lease ends. This agreement formally removes those protections, giving landlords complete discretion over future leasing arrangements.

When do you need this document?

You need this agreement when entering into a commercial or retail lease where the landlord requires flexibility to refuse lease renewal without providing statutory compensation or justification. This commonly occurs in high-value commercial properties, shopping centers where landlords want to control tenant mix, or properties earmarked for future development or sale. The agreement is also necessary when lease terms involve significant landlord investment that requires guaranteed lease termination options. You must execute this document before your lease commences, as it cannot be validly created after the lease begins.

Key legal considerations

The most critical requirement is that both parties must obtain independent legal advice before signing, and this must be formally declared within the document. You need to understand that by signing, you're permanently waiving valuable statutory rights that could provide financial protection or lease continuation options. The agreement must clearly identify the specific lease it relates to, include full property details, and contain precise definitions of key terms. Both parties must acknowledge they understand the consequences and are entering the agreement voluntarily without duress. The document should include witness signatures and be executed as a deed to ensure enforceability.

Legal requirements in Australia

Each Australian state has specific legislation governing these agreements. In NSW, the Retail Leases Act 1994 sets strict requirements for excluding security of tenure, including mandatory disclosure periods and specific warning language. Victoria's Retail Leases Act 2003 contains similar provisions with additional requirements for lease registration and tenant notification procedures. The Competition and Consumer Act 2010 provides overarching protection against unfair contract terms, meaning the agreement cannot be unconscionable or impose unreasonable disadvantages. State property law acts also govern the execution requirements, typically requiring the agreement to be signed as a deed with proper witnessing. You must ensure the agreement complies with your state's specific legislative requirements, as non-compliance can render the exclusion invalid and restore your statutory rights.