Agreement to Lease

An Agreement to Lease is a binding pre-lease agreement, setting the conditions for completing the lease.

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Last updated October 23, 2025

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Suitable for Australia

Agreement to Lease

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What is a agreement to lease?

An agreement to lease is a binding pre-lease contract that sets out the conditions to be met before a formal lease is entered into by the parties.
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When should you use a agreement to lease?

You should use this agreement when critical terms of a lease, such as construction or approvals, cannot be finalised at the time of signing the lease.
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What should be in a agreement to lease?

It should include the parties’ obligations, preconditions to the lease, guarantee details, legal costs, and general terms until the lease commences.
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Frequently asked questions

What is a agreement to lease?

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When should you use a agreement to lease?

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What should be in a agreement to lease?

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What protections does this agreement provide for each party?

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What are the main risks for tenants using this document?

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Does this agreement cover construction or development timelines?

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What steps should be taken after signing?

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View Sample Agreement to Lease

Agreement to Lease
risk level indicator at Medium level

The Legal Risk Score of a Agreement to Lease Template is Medium

Our legal team have marked this document as medium risk considering:

  • The document mandates the Tenant to bear all legal costs related to the negotiation, preparation, execution, and any potential defaults under the agreement, which could result in significant financial obligations for the Tenant.
  • All consents required by the Tenant for alterations or other actions need written approval from the Landlord, and the Tenant must cover all associated costs, potentially leading to delays and additional expenses.
  • The document does not explicitly provide an exit or modification clause for the Tenant, which means the Tenant might find it challenging to adapt or exit the agreement without facing substantial legal and financial repercussions.

Overall, this document places a considerable amount of financial and operational responsibility on the Tenant. Users familiar with such documents might understand the implications, but should remain cautious about the potential for incurring unexpected costs and the limited flexibility in terms of modifying the agreement.

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If you're thinking about leasing a commercial premises for your business, understanding how a make good clause works is important. Read about it here.

What is the Difference Between Deeds and Agreements?
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Interested in learning more about the differences between deeds and agreements? This blog will explain everything you need to know.

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