Commercial lease exit review checklist (AU)
A clean exit minimises trailing liability and recovers security. This checklist covers the 12 steps that drive exit outcomes — from notice, through make good, to security release.
This is a 12-step commercial lease exit review checklist. It covers exit pathways (expiry, break, early exit, assignment, surrender), notice requirements, make good, outgoings reconciliation, and return of bank guarantees or bonds. Use it 9–12 months before the planned exit.
The checklist
Identify the exit pathway
Clarify the pathway — expiry, exercise of break option, early surrender, assignment, sublet, or holding over. Each has different risks.
Diarise notice dates
Diarise statutory and contractual notice dates — break notice window, retail lease holdover rules, landlord end-of-term notice.
Issue required notices
Issue notices on time, in the form and to the addresses the lease specifies. Use registered post or personal service where required.
Review make good obligations
Review make good, removal of fit-out, and reinstatement. Scope works with a quantity surveyor.
Resolve unapproved alterations
Identify any alterations without landlord consent. Retrofit consent or reinstate.
Reconcile outgoings
Review outgoings reconciliations for the final year and any historical disputes. Retail leases have statutory reconciliation requirements.
Address repainting, cleaning, and service contracts
Attend to repainting, deep cleaning, and termination of services (cleaning, IT, security) aligned to handover.
Plan physical move
Plan removalist, decommissioning of IT/comms, and access. Coordinate landlord requirements (after-hours, goods lift).
Handover inspection
Conduct a joint handover inspection with the landlord. Document condition and hand over keys/access.
Bank guarantee / bond release
Request release of the bank guarantee or bond. Diarise follow-up if not released within 30 days.
Final account and reconciliation
Finalise outgoings, electricity, water, and rates charges to exit date. Pay any balance and chase credit refunds.
Close out obligations post-exit
Address surviving obligations — confidentiality, indemnities, ongoing insurance run-off, and statutory claims periods.
When this checklist applies
Use this checklist 9–12 months before planned exit. For break options, start earlier — notice windows frequently close 6+ months before the break date.
Common pitfalls
- Break notice served late or in wrong form — break rights lost
- Make good underestimated — cost explodes on handover
- Bank guarantee not released on time — out-of-pocket
- Outgoings reconciliation not finalised — trailing claims years later
- Unapproved alterations surfaced at handover
Run this checklist on a real matter
Quillio runs commercial lease exit reviews, models make good vs cash-in-lieu, and tracks the notice and handover timeline. See /practice-areas/property-lawyers or start a free trial.
Exit outcomes depend heavily on the specific lease clauses. Confirm notice and make good provisions with counsel before acting.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
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