Can I assign my retail lease if I sell my business?

Yes, assigning your retail lease is a common part of selling a business. However, it requires the lessor’s consent and involves several legal steps.

When the Lessor Must Consent

Under the Retail Shop Leases Act 1994 (Qld) (the Act), a lessor cannot unreasonably withhold consent to an assignment. They may require certain conditions: including:

• Demonstrating the new tenant (assignee) has sufficient financial capacity
• Providing evidence of the assignee’s retail experience or business knowledge
• Requiring reasonable legal and administrative costs of the consent to be met

Release of Personal Guarantees

One of the Act’s most important protections for sellers is section 50. This provision states that where the lessor consents to an assignment and the assignee is approved on the basis of their own financial capacity, the lessor cannot require the original tenant to remain as guarantor for the assignee’s future obligations.

Timeline for Assignment

The assignment process typically takes between 4 to 8 weeks. This timeline is critical to factor into your business sale contract: failing to do so can create significant settlement risk.

For more information, see our Full Retail Leasing Guide .

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