As we approach the end of 2025, we are noticing a distinct trend in the South East Queensland commercial property market: a surge in business sales and requests for lease assignments.
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.
The Reminder: Under Section 142 of the Property Law Act 2023, time is now of the essence. Once a tenant provides you with a formal “Proposal Notice” containing the required details of the new tenant, you strictly have one month to respond with a “Decision Notice”.
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.
References
- Clayton Utz. (2025, July 24). Countdown to change: Commencement of the new Property Law Act in Queensland.
- Crown Law. (2024, October 4). New Property Law Act for Queensland. Queensland Government.
- Ensure Legal. (2025, August 4). Queensland’s New Property Law For Commercial Leases Now In Force.
- Hundt Law. (2025, August 25). PLA23 in practice: What the new property laws in Queensland mean for your commercial lease.
- McCullough Robertson. (2025, June 1). Property Law Act 2023 (Qld) – Changes to leasing.
- RedeMont. (2025, July 31). New QLD PLA 2023: Changes to Assignment of Leases.
For a complete list of weekly commercial transactions in Queensland, visit McGees Wrap Up | McGees Property Brisbane
Disclaimer: The information provided in this blog is for general informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, we make no guarantees regarding the completeness or timeliness of the content. Always seek independent advice before making any financial or real estate decisions. We are not liable for any loss or damages arising from your reliance on the information provided.
Liability Limited by a Scheme approved under Professional Standards Legislation
