While this activity is a positive sign of a dynamic market, it is revealing a concerning gap in compliance. It has been four months since the Property Law Act 2023 (Queensland) commenced on August 1, 2025, yet many landlords are still operating under the "old rules."

If you receive a request from a tenant to assign their lease or sublet their space this month, please do not rely on your memory of how things used to work. The landscape has shifted, and a simple administrative error could cost you your security.

Here is a reminder of the critical changes regarding assignments and consent that are now fully enforceable.

1. The "Silence is Consent" Risk

In the past, if a tenant requested an assignment, a landlord could often take time to review the incoming tenant’s financials. Delays were common and rarely penalised.

We are seeing landlords ignore these emails, thinking they can deal with them later. Please be aware that if you do not respond within the statutory timeframe, you may lose your right to object, or face legal intervention where the Court makes the decision for you.

2. The Automatic Release of Guarantors

This is the most common misunderstanding we are seeing in recent weeks. Many landlords assume that if they approve an assignment, the original tenant (and their directors) remain liable as a "backup" if the new tenant fails.

The Reminder: This safety net has been removed for subsequent assignments. Under Section 144, if a lease is assigned (for example, from Tenant B to Tenant C), the original tenant and their guarantors are released from liability for any breaches committed by the new tenant.

Why this matters now: If you are currently reviewing an assignment request, you must vet the new tenant as strictly as a brand new applicant. You cannot rely on the original tenant’s strength anymore. If the new tenant has weak financials, you must consider asking for a higher security bond or a bank guarantee before granting consent.

3. The "Designated Person" Procedure

If the assignment goes wrong and the new tenant defaults, the process to terminate has also become more rigorous.

The Reminder: You cannot simply lock the doors. Before terminating or re-entering, you must serve a formal breach notice to all "Designated Persons." This includes not just the tenant, but also any mortgagees (banks) and sub-tenants.

We have seen instances where termination notices were technically invalid because the landlord failed to notify the tenant’s bank. In the current legal climate, adherence to procedure is paramount.

Lease Assignment Health Check

Use the interactive roadmap below to check your compliance risk:

Summary

The Property Law Act 2023 is no longer "new legislation"; it is the current standard. As we see more movement in the Brisbane market this December, please ensure you are not assessing lease assignments based on outdated practices.

If you are managing your own commercial property and unsure what to do, please contact our Asset Management team for assistance.

asset.admin@bne.mcgees.com.au