As business brokers, we deal with lease assignments almost daily. While the process is critical to the successful sale of most businesses, certain aspects—particularly around cost, timing, and documentation—have become increasingly unreasonable. It’s time to acknowledge that the current framework is unbalanced and ripe for reform.
The Cost Blowout
One of the most frustrating issues we see is the wildly inconsistent legal fees associated with lease assignments. We’ve seen charges range from $1,500 all the way up to $7,800. These costs are typically non-negotiable and are rarely questioned—mainly because they come at the very end of the transaction, when buyer and seller fatigue has well and truly set in.
By this stage, everyone just wants the deal to happen. Any further delays could mean lost income, disrupted plans, or even a failed settlement. Sellers and buyers often reluctantly agree to excessive legal costs just to get it over the line.
No Time Limits on Documentation
Under the relevant Retail Leases legislation in Australia, the time frame for landlords to approve a proposed assignee varies by state, from 21 to 42 days. That part is clear. However, what’s noticeably absent is any legislated timeframe for how long the lease assignment documentation itself can take—or how much it should cost.
This gap gives landlords and their legal teams disproportionate power. They can take as long as they like to produce documents, and charge what they please. There’s no accountability, and no defined boundaries. In many cases, we’ve seen the lease approval process take the full 28-30 days—only to be followed by another 30 to 60 days just to finalise the paperwork.
That’s simply not good enough.
Real Impact on Real People
It’s easy to lose sight of the fact that behind every lease assignment is a real person with real plans and pressures. The seller may be retiring, moving onto their next venture, or simply trying to close one chapter of their life. The buyer is often someone stepping into business ownership for the first time, or relying on the new business as their sole source of income.
Unnecessary delays and inflated costs don’t just hurt the deal—they cause real stress, emotional strain, and financial hardship. To be frank, we don’t believe most agents, centre managers, or landlords truly understand—or care—about this emotional weight. There is little empathy shown, and even less accountability.
Brokers Have a Role to Play
That said, we also believe in the importance of doing things properly. As brokers, it’s our responsibility to ensure the buyer being proposed as the new tenant meets the landlord’s expectations. That means doing the due diligence—checking financials, experience, and compliance with the Retail Leases legislation requirements regarding assets and liabilities.
We respect that landlords want low-risk, capable operators. And we acknowledge that they have a right to protect their investment and choose a suitable tenant. This should be a mutually beneficial process—but currently, the balance of power is skewed.
The Call for Legislative Reform
This process can and should be a win for all parties—seller, buyer, and landlord. But right now, it’s not. The lack of clarity and fairness in lease assignment timeframes and cost regulation under the current Retail Leases legislation is unacceptable.
We’re calling on state legislators to introduce reforms that:
- Cap or regulate legal fees for lease assignments
- Mandate reasonable timeframes not just for approval, but for documentation and execution
- Provide clear dispute resolution pathways for excessive delays or costs
Until we bring more structure and fairness into the process, lease assignments will continue to be an unnecessary stumbling block in what is already a complex business transition.
It’s time to level the playing field. The Retail Leases legislation needs to evolve—because right now, it’s letting too many people down.
Find more information about the Retal Leases Act that covers your state here:
New South Wales: Retail Leases Act 1994
Victoria: Retail Leases Act 2003
Queensland: Retail Shop Leases Act 1994
South Australia: Retail and Commercial Leases Act 1995
Western Australia: Commercial Tenancy (Retail Shops) Agreements Act 1985
Australian Capital Territory: Leases (Commercial and Retail) Act 2001
Tasmania: Fair Trading (Code of Practice for Retail Tenancies) Regulations 1998
Northern Territory: Business Tenancies (Fair Dealings) Act 2003
