Under the Land Use Act, land in each state is vested in the Governor to be held in trust. Businesses hold statutory or customary rights of occupancy rather than English freehold title. Governor’s consent is generally required to alienate a statutory right of occupancy.

Property due diligence

Verify the root and chain of title, survey and coordinates, acquisition or revocation history, government schemes, encumbrances, litigation, ground rent and land charges, consent and registration, planning and building approvals, physical possession, occupiers, access, environmental condition and the counterparty’s corporate authority.

Land procedure and cost are state-specific. A document described as a Certificate of Occupancy is not a substitute for a full search and site investigation. Confirm that the person granting a lease or sale has title and authority and that the intended use is permitted.

Lease and operational issues

A commercial lease should address term, rent and review, service charge, taxes, repairs, alterations, signage, utilities, insurance, assignment, subletting, reinstatement, access, default and termination. Check whether landlord consent is needed for fit-out or licences.

Industrial projects should assess federal and state environmental approvals, planning, fire, waste, water and occupational-safety requirements before acquiring or fitting out the site. Due diligence should also cover power, backup generation, telecoms, road access, security and business continuity. Legal possession of premises does not guarantee the infrastructure needed to operate.