---
title: "Commercial Property & Leasing"
url: "https://ailawframework.com/practice/commercial-property-and-leasing"
type: "practice_area"
site: "AI Law Framework"
id: "A10"
task_count: 31
last_reviewed: "2026-10-10"
---

# Commercial Property & Leasing

> Connect each property or lease review to the premises, parties and intended use. Check the complete lease, title and supporting documents for financial terms, obligations, options and jurisdiction-specific requirements.

Canonical page: https://ailawframework.com/practice/commercial-property-and-leasing  
Last reviewed: 2026-10-10

Site index for agents: https://ailawframework.com/llms.txt

Also covers: Commercial conveyancing, property law, real property, retail leasing, leasehold, landlord-tenant, commercial real estate, property transactions, vendor due diligence

Commercial property and leasing practice covers acquisition, disposal, development, and occupation of commercial, retail, and industrial premises, including drafting and negotiating leases, conducting title and planning due diligence, and managing ongoing landlord-tenant relationships. The AI risk profile is high: transactions are high-value, jurisdiction-specific statutory regimes (differing across all eight Australian states and territories) change frequently, title and encumbrance data must be sourced from live registries rather than model training data, and a single hallucinated clause or missed disclosure obligation can expose clients to six- or seven-figure losses and solicitors to professional liability.

## Key facts

- Tasks: 31
- Green: 7, Yellow: 20, Red: 4
- Levels: Green is AI drafts and the lawyer checks; Yellow is lawyer and AI draft together; Red is the lawyer writes and AI may only check, clarify or collect data.

## Principles

- **Define the matter**: Confirm the client’s instructions, jurisdiction, intended output and the information available before dividing the work.
- **Verify the authorities**: Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
- **Reconcile the figures**: Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.

## Checklist

- Open each relied-on authority independently. Confirm its existence, current status, proposition and any quotation or pinpoint reference.
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Calculate operative dates independently from the current rule and actual triggering event. Check exceptions and record the verified deadline.
- Check the current court or regulator requirements, prescribed form and attachments for the intended document and filing.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm that the wording reflects the client’s instructions and contains no unintended admission, concession or commitment. Check the recipient and tone.
- Confirm that the actual tool, feature and processing terms permit use of this information, including access, retention, training and disclosure conditions.
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.

## Restrictions

- Confirm firm, client and applicable court or professional restrictions before using any AI feature.

## Jurisdiction note

Apply this guidance to the actual matter and jurisdiction. Confirm current requirements before relying on an example.

## Basis

Practice guidance supports planning; the responsible lawyer confirms the scope, evidence and review requirements for the matter.

Also covers: Commercial conveyancing, property law, real property, retail leasing, leasehold, landlord-tenant, commercial real estate, property transactions, vendor due diligence

Commercial property and leasing practice covers acquisition, disposal, development, and occupation of commercial, retail, and industrial premises, including drafting and negotiating leases, conducting title and planning due diligence, and managing ongoing landlord-tenant relationships. The AI risk profile is high: transactions are high-value, jurisdiction-specific statutory regimes (differing across all eight Australian states and territories) change frequently, title and encumbrance data must be sourced from live registries rather than model training data, and a single hallucinated clause or missed disclosure obligation can expose clients to six- or seven-figure losses and solicitors to professional liability.

## Limits on AI assistance

Red lines — never in this area

## Limits on AI assistance

AI must never generate a final stamp duty, CIPT, or land tax figure for inclusion in a settlement statement, client letter, or court document without independent verification against current revenue office guidance — the Victorian CIPT regime (effective 1 July 2024) is a high-complexity trap: stamp duty IS still payable on the entry transaction; CIPT only commences 10 years later; rates and concessions change annually across all jurisdictions. AI must never be the sole or primary source of case citations submitted to VCAT, NCAT, QCAT, SAT, or any court — every citation must be independently verified on AustLII, Jade.io, or a verified legal database. Handa & Mallick [2024] FedCFamC2F 957 and Valu v Minister for Immigration and Multicultural Affairs (No.2) [2025] FedCFamC2G 95 make clear that filing AI-hallucinated authorities is a sanctionable disciplinary breach; ignorance of the tool's limitations is expressly not a defence. AI must never generate a final statutory notice (notice to remedy breach, notice of termination, notice of option exercise) for issue to a counterparty without lawyer review of the exact form, notice period, and service method requirements under the relevant state Act — one day's error in a termination notice can be fatal to the landlord's position. AI must never perform or be the sole basis for option exercise deadline calculation — the deadline must be independently calculated from the lease wording by the lawyer and diarised in the firm's matter management system; missing an option window is generally irreversible and AI date arithmetic errors on day-of-month counting, leap years, and 'not less than' vs 'by no later than' wording are a demonstrated failure mode. AI must never perform the final title search or interpret title register output as a substitute for a live search from the state titles registry — AI training data is stale and cannot reflect current encumbrances, caveats, or dealings registered since the training cutoff. AI must never advise on foreign investment approval requirements under the Foreign Acquisitions and Takeovers Act 1975 (Cth) or current FIRB thresholds without independent verification — thresholds are indexed by CPI annually on 1 January and AI data will be stale; vacant commercial land has a $0 threshold (always notifiable) regardless of value. AI must not be used to advise on whether a particular use is 'permitted with consent' or 'prohibited' under a local environmental plan, planning scheme, or development plan without lawyer verification against the current planning certificate — councils amend LEPs and planning schemes regularly and AI will not reflect those amendments. AI must not draft or check GST margin scheme calculations or supply-of-going-concern analysis without lawyer verification against current ATO public rulings (GSTR 2002/5; GSTR 2000/21) and any private binding ruling — errors directly affect settlement figures and can result in unexpected GST liability for the client. AI must not be used to generate or populate a Queensland seller disclosure statement or prescribed certificates under the Property Law Act 2023 (Qld) (commenced 1 August 2025) without the lawyer confirming the correct approved form and prescribed certificate versions — AI trained before mid-2025 will apply the repealed Property Law Act 1974 framework. AI must not be used to generate a Victorian section 32 Vendor Statement without the lawyer confirming all prescribed annexures against the current Sale of Land Act 1962 (Vic) and Subdivision Act 1988 (Vic) requirements — missing or incomplete s.32 gives the purchaser a right to rescind.

- AI must never generate a final stamp duty, CIPT, or land tax figure for inclusion in a settlement statement, client letter, or court document without independent verification against current revenue office guidance — the Victorian CIPT regime (effective 1 July 2024) is a high-complexity trap: stamp duty IS still payable on the entry transaction; CIPT only commences 10 years later; rates and concessions change annually across all jurisdictions.
- AI must never be the sole or primary source of case citations submitted to VCAT, NCAT, QCAT, SAT, or any court — every citation must be independently verified on AustLII, Jade.io, or a verified legal database. Handa & Mallick [2024] FedCFamC2F 957 and Valu v Minister for Immigration and Multicultural Affairs (No.2) [2025] FedCFamC2G 95 make clear that filing AI-hallucinated authorities is a sanctionable disciplinary breach; ignorance of the tool's limitations is expressly not a defence.
- AI must never generate a final statutory notice (notice to remedy breach, notice of termination, notice of option exercise) for issue to a counterparty without lawyer review of the exact form, notice period, and service method requirements under the relevant state Act — one day's error in a termination notice can be fatal to the landlord's position.
- AI must never perform or be the sole basis for option exercise deadline calculation — the deadline must be independently calculated from the lease wording by the lawyer and diarised in the firm's matter management system; missing an option window is generally irreversible and AI date arithmetic errors on day-of-month counting, leap years, and 'not less than' vs 'by no later than' wording are a demonstrated failure mode.
- AI must never perform the final title search or interpret title register output as a substitute for a live search from the state titles registry — AI training data is stale and cannot reflect current encumbrances, caveats, or dealings registered since the training cutoff.
- AI must never advise on foreign investment approval requirements under the Foreign Acquisitions and Takeovers Act 1975 (Cth) or current FIRB thresholds without independent verification — thresholds are indexed by CPI annually on 1 January and AI data will be stale; vacant commercial land has a $0 threshold (always notifiable) regardless of value.
- AI must not be used to advise on whether a particular use is 'permitted with consent' or 'prohibited' under a local environmental plan, planning scheme, or development plan without lawyer verification against the current planning certificate — councils amend LEPs and planning schemes regularly and AI will not reflect those amendments.
- AI must not draft or check GST margin scheme calculations or supply-of-going-concern analysis without lawyer verification against current ATO public rulings (GSTR 2002/5; GSTR 2000/21) and any private binding ruling — errors directly affect settlement figures and can result in unexpected GST liability for the client.
- AI must not be used to generate or populate a Queensland seller disclosure statement or prescribed certificates under the Property Law Act 2023 (Qld) (commenced 1 August 2025) without the lawyer confirming the correct approved form and prescribed certificate versions — AI trained before mid-2025 will apply the repealed Property Law Act 1974 framework.
- AI must not be used to generate a Victorian section 32 Vendor Statement without the lawyer confirming all prescribed annexures against the current Sale of Land Act 1962 (Vic) and Subdivision Act 1988 (Vic) requirements — missing or incomplete s.32 gives the purchaser a right to rescind.

## Jurisdiction-specific considerations

Australian traps

## Jurisdiction-specific considerations

JURISDICTION FRAGMENTATION: Commercial and retail leasing is governed by eight separate statutory regimes (NSW: Retail Leases Act 1994; Vic: Retail Leases Act 2003; Qld: Retail Shop Leases Act 1994; WA: Commercial Tenancy (Retail Shops) Agreements Act 1985; SA: Retail and Commercial Leases Act 1995; Tas: Fair Trading (Code of Practice for Retail Tenancies) Act 2006; ACT: Leases (Commercial and Retail) Act 2001; NT: Business Tenancies (Fair Dealings) Act 2003). AI models frequently confuse provisions across Acts or apply the wrong jurisdiction's rules. Always specify jurisdiction in every AI prompt and verify the output against the correct current Act. QUEENSLAND PROPERTY LAW ACT 2023 — COMMENCED 1 AUGUST 2025: The Property Law Act 2023 (Qld) replaced the Property Law Act 1974 (Qld) and introduced a mandatory seller disclosure scheme for commercial and residential property sales. Sellers must serve an approved seller disclosure statement and prescribed certificates before the buyer enters into a contract; failure triggers a buyer rescission right. AI trained on pre-August 2025 data will apply the repealed framework and generate non-compliant documents. This is a high-risk trap for any Queensland property transaction from 1 August 2025 onwards. The REIQ/ADL contract form has been updated to accommodate the new regime — confirm the current form version. VICTORIAN CIPT NUANCE — STAMP DUTY IS NOT SIMPLY ABOLISHED: From 1 July 2024, Victorian commercial and industrial property enters a new 'CIPT regime' on its first qualifying transaction. Critically: stamp duty IS still payable at standard rates on that entry transaction. CIPT (1% of unimproved land value per year; 0.5% for build-to-rent) only becomes payable annually commencing 10 years after the entry transaction. A transition loan from Treasury Corporation of Victoria is available for the entry-transaction duty. AI models that describe Vic stamp duty as 'abolished' from 1 July 2024 are wrong and will generate incorrect settlement figures. Always verify whether the specific property has already entered the CIPT regime (check with SRO Vic). NSW RETAIL LEASES AMENDMENT (REVIEW) ACT 2025 — COMMENCEMENT BY PROCLAMATION: Assented to 15 August 2025; commencement date to be fixed by proclamation (not yet commenced as of the knowledge cutoff). Key reforms: limits outgoings liability to disclosed items; allows disclosure statement amendment by written agreement (avoiding the 7-day re-issue period); introduces early disclosure of proposed lease documents. Confirm current commencement status with NSW Small Business Commissioner before advising clients. AI will not reliably distinguish between whether the Act is in force. VICTORIAN RENT REVIEW CAPS — ALDI FOODS [2024] VSC 799: The Victorian Supreme Court in Aldi Foods Pty Ltd v Northcote Shopping Centre Pty Ltd [2024] VSC 799 (December 2024) held that caps on CPI and market rent reviews ARE permitted under s 35(2) of the Retail Leases Act 2003 (Vic), overturning a line of VCAT decisions that had declared such caps void. AI trained on pre-December 2024 law will advise incorrectly that rent review caps are void under Victorian retail leases. This is a significant drafting and advice risk in any Vic retail lease engagement. STATUTORY PRESCRIBED FORMS — FORMS CHANGE: Disclosure statements, s.32 vendor statements (Vic), Qld seller disclosure statements (post-1 August 2025 approved form), and contract for sale annexures are prescribed by regulation and updated when legislation or regulations change. AI may generate a version based on a superseded form. Always obtain the current form directly from the relevant government source: NSW Small Business Commissioner; Consumer Affairs Victoria (s.32); Queensland Government seller disclosure scheme portal; REIQ/ADL (Qld contracts, updated for the Property Law Act 2023). LIMITATION DEADLINES — OPTION WINDOWS AND NOTICE PERIODS ARE ABSOLUTE: Time limits for exercising options to renew are typically set by the lease and are absolute. VCAT, NCAT, QCAT, and equivalent tribunals have limited or no power to grant relief against failure to exercise an option in time. Critical dates must be independently diarised in the firm's matter management system. AI must not be trusted to calculate or track these deadlines. FOREIGN PURCHASER SURCHARGE RATES CHANGE BY REGULATION: Additional duty applies in NSW (8%), Vic (8%), Qld (7%), SA (7%), WA (7%) on foreign person acquisitions of residential land; some states have extended surcharges to commercial land in certain circumstances. FIRB thresholds are indexed annually on 1 January (2026 non-FTA commercial threshold: $347 million; vacant commercial land: $0, always notifiable). Rates, definitions of 'foreign person', and notification thresholds change by regulation. Always verify current rates with the relevant revenue office and foreigninvestment.gov.au. PEXA MANDATORY JURISDICTIONS AND SETTLEMENT COLLAPSE RISK: Electronic lodgement via PEXA is mandatory in NSW, Vic, Qld, WA, and SA for most freehold transfers. Solicitors must be PEXA-subscriber with appropriate authorisations. Errors in the PEXA workspace (wrong lodgement sequence, failure to discharge caveat before transfer, duty payment workflow failure) can cause settlement to collapse on the day. AI cannot interact with PEXA workspaces. CONTAMINATED LAND REGISTERS — AI CANNOT SEARCH THESE: Each state maintains its own contaminated land or environment protection register (NSW EPA; Vic EPA; Qld DEHP; SA EPA). AI cannot query these live registers. Failure to search these registers before exchange is a common source of professional negligence claims in commercial acquisitions. VICTORIAN MINIMUM FIVE-YEAR TERM WITH VSBC WAIVER MECHANISM: Vic requires a minimum five-year lease term for retail premises (including options) under s.21 of the Retail Leases Act 2003. A tenant may waive this by obtaining a waiver certificate from the Victorian Small Business Commissioner (VSBC) after receiving independent legal advice. A 15-year-plus initial term exemption also exists by Ministerial Determination. AI routinely drafts Vic retail leases with shorter terms without flagging this mandatory requirement or the waiver procedure.

- JURISDICTION FRAGMENTATION: Commercial and retail leasing is governed by eight separate statutory regimes (NSW: Retail Leases Act 1994; Vic: Retail Leases Act 2003; Qld: Retail Shop Leases Act 1994; WA: Commercial Tenancy (Retail Shops) Agreements Act 1985; SA: Retail and Commercial Leases Act 1995; Tas: Fair Trading (Code of Practice for Retail Tenancies) Act 2006; ACT: Leases (Commercial and Retail) Act 2001; NT: Business Tenancies (Fair Dealings) Act 2003). AI models frequently confuse provisions across Acts or apply the wrong jurisdiction's rules. Always specify jurisdiction in every AI prompt and verify the output against the correct current Act.
- QUEENSLAND PROPERTY LAW ACT 2023 — COMMENCED 1 AUGUST 2025: The Property Law Act 2023 (Qld) replaced the Property Law Act 1974 (Qld) and introduced a mandatory seller disclosure scheme for commercial and residential property sales. Sellers must serve an approved seller disclosure statement and prescribed certificates before the buyer enters into a contract; failure triggers a buyer rescission right. AI trained on pre-August 2025 data will apply the repealed framework and generate non-compliant documents. This is a high-risk trap for any Queensland property transaction from 1 August 2025 onwards. The REIQ/ADL contract form has been updated to accommodate the new regime — confirm the current form version.
- VICTORIAN CIPT NUANCE — STAMP DUTY IS NOT SIMPLY ABOLISHED: From 1 July 2024, Victorian commercial and industrial property enters a new 'CIPT regime' on its first qualifying transaction. Critically: stamp duty IS still payable at standard rates on that entry transaction. CIPT (1% of unimproved land value per year; 0.5% for build-to-rent) only becomes payable annually commencing 10 years after the entry transaction. A transition loan from Treasury Corporation of Victoria is available for the entry-transaction duty. AI models that describe Vic stamp duty as 'abolished' from 1 July 2024 are wrong and will generate incorrect settlement figures. Always verify whether the specific property has already entered the CIPT regime (check with SRO Vic).
- NSW RETAIL LEASES AMENDMENT (REVIEW) ACT 2025 — COMMENCEMENT BY PROCLAMATION: Assented to 15 August 2025; commencement date to be fixed by proclamation (not yet commenced as of the knowledge cutoff). Key reforms: limits outgoings liability to disclosed items; allows disclosure statement amendment by written agreement (avoiding the 7-day re-issue period); introduces early disclosure of proposed lease documents. Confirm current commencement status with NSW Small Business Commissioner before advising clients. AI will not reliably distinguish between whether the Act is in force.
- VICTORIAN RENT REVIEW CAPS — ALDI FOODS [2024] VSC 799: The Victorian Supreme Court in Aldi Foods Pty Ltd v Northcote Shopping Centre Pty Ltd [2024] VSC 799 (December 2024) held that caps on CPI and market rent reviews ARE permitted under s 35(2) of the Retail Leases Act 2003 (Vic), overturning a line of VCAT decisions that had declared such caps void. AI trained on pre-December 2024 law will advise incorrectly that rent review caps are void under Victorian retail leases. This is a significant drafting and advice risk in any Vic retail lease engagement.
- STATUTORY PRESCRIBED FORMS — FORMS CHANGE: Disclosure statements, s.32 vendor statements (Vic), Qld seller disclosure statements (post-1 August 2025 approved form), and contract for sale annexures are prescribed by regulation and updated when legislation or regulations change. AI may generate a version based on a superseded form. Always obtain the current form directly from the relevant government source: NSW Small Business Commissioner; Consumer Affairs Victoria (s.32); Queensland Government seller disclosure scheme portal; REIQ/ADL (Qld contracts, updated for the Property Law Act 2023).
- LIMITATION DEADLINES — OPTION WINDOWS AND NOTICE PERIODS ARE ABSOLUTE: Time limits for exercising options to renew are typically set by the lease and are absolute. VCAT, NCAT, QCAT, and equivalent tribunals have limited or no power to grant relief against failure to exercise an option in time. Critical dates must be independently diarised in the firm's matter management system. AI must not be trusted to calculate or track these deadlines.
- FOREIGN PURCHASER SURCHARGE RATES CHANGE BY REGULATION: Additional duty applies in NSW (8%), Vic (8%), Qld (7%), SA (7%), WA (7%) on foreign person acquisitions of residential land; some states have extended surcharges to commercial land in certain circumstances. FIRB thresholds are indexed annually on 1 January (2026 non-FTA commercial threshold: $347 million; vacant commercial land: $0, always notifiable). Rates, definitions of 'foreign person', and notification thresholds change by regulation. Always verify current rates with the relevant revenue office and foreigninvestment.gov.au.
- PEXA MANDATORY JURISDICTIONS AND SETTLEMENT COLLAPSE RISK: Electronic lodgement via PEXA is mandatory in NSW, Vic, Qld, WA, and SA for most freehold transfers. Solicitors must be PEXA-subscriber with appropriate authorisations. Errors in the PEXA workspace (wrong lodgement sequence, failure to discharge caveat before transfer, duty payment workflow failure) can cause settlement to collapse on the day. AI cannot interact with PEXA workspaces.
- CONTAMINATED LAND REGISTERS — AI CANNOT SEARCH THESE: Each state maintains its own contaminated land or environment protection register (NSW EPA; Vic EPA; Qld DEHP; SA EPA). AI cannot query these live registers. Failure to search these registers before exchange is a common source of professional negligence claims in commercial acquisitions.
- VICTORIAN MINIMUM FIVE-YEAR TERM WITH VSBC WAIVER MECHANISM: Vic requires a minimum five-year lease term for retail premises (including options) under s.21 of the Retail Leases Act 2003. A tenant may waive this by obtaining a waiver certificate from the Victorian Small Business Commissioner (VSBC) after receiving independent legal advice. A 15-year-plus initial term exemption also exists by Ministerial Determination. AI routinely drafts Vic retail leases with shorter terms without flagging this mandatory requirement or the waiver procedure.

## Risks to address

How it goes wrong

## Risks to address

Wrong jurisdiction's retail leases statute applied: AI generates a disclosure statement or lease clause referencing the NSW Act for a Victorian retail premises, or vice versa — the prescribed form, notice periods, and tenant protections differ materially and the error may not be visible on the face of the document. Queensland pre-2025 framework applied: AI generates a contract or vendor disclosure document using the repealed Property Law Act 1974 (Qld) framework for a transaction after 1 August 2025 — the new Property Law Act 2023 (Qld) requires an approved seller disclosure statement and prescribed certificates; a non-compliant document gives the buyer a rescission right. Victorian CIPT regime mischaracterised — 'no stamp duty in Vic' error: AI advises that stamp duty has been abolished for all Vic commercial property from 1 July 2024 and generates a settlement statement with zero duty. In fact, stamp duty IS payable at standard rates on the entry (first post-July 2024) transaction. The error causes the client to under-fund settlement and creates potential liability for the solicitor. Vic rent review cap advice based on superseded VCAT position: AI advises (based on pre-December 2024 VCAT decisions) that a cap on market or CPI rent reviews in a Victorian retail lease is void under s 35(2). The Victorian Supreme Court in Aldi Foods Pty Ltd v Northcote Shopping Centre Pty Ltd [2024] VSC 799 held caps ARE permitted. The error causes the landlord to remove or disclaim a valid rent cap, with direct financial consequence. Hallucinated case citations in dispute advice or VCAT/NCAT submissions: AI invents plausible-sounding property case names, citations, and legal propositions; Handa & Mallick [2024] FedCFamC2F 957 and Valu v Minister [2025] FedCFamC2G 95 establish this is a sanctionable disciplinary breach in Australia. Option exercise date miscalculated: AI misinterprets 'not less than 6 months before the expiry of the term' as 6 months after expiry, or miscounts days across a month boundary or leap year, causing the client to miss the option window — an irreversible loss with no curative power in most Australian retail lease regimes.

- Wrong jurisdiction's retail leases statute applied: AI generates a disclosure statement or lease clause referencing the NSW Act for a Victorian retail premises, or vice versa — the prescribed form, notice periods, and tenant protections differ materially and the error may not be visible on the face of the document.
- Queensland pre-2025 framework applied: AI generates a contract or vendor disclosure document using the repealed Property Law Act 1974 (Qld) framework for a transaction after 1 August 2025 — the new Property Law Act 2023 (Qld) requires an approved seller disclosure statement and prescribed certificates; a non-compliant document gives the buyer a rescission right.
- Victorian CIPT regime mischaracterised — 'no stamp duty in Vic' error: AI advises that stamp duty has been abolished for all Vic commercial property from 1 July 2024 and generates a settlement statement with zero duty. In fact, stamp duty IS payable at standard rates on the entry (first post-July 2024) transaction. The error causes the client to under-fund settlement and creates potential liability for the solicitor.
- Vic rent review cap advice based on superseded VCAT position: AI advises (based on pre-December 2024 VCAT decisions) that a cap on market or CPI rent reviews in a Victorian retail lease is void under s 35(2). The Victorian Supreme Court in Aldi Foods Pty Ltd v Northcote Shopping Centre Pty Ltd [2024] VSC 799 held caps ARE permitted. The error causes the landlord to remove or disclaim a valid rent cap, with direct financial consequence.
- Hallucinated case citations in dispute advice or VCAT/NCAT submissions: AI invents plausible-sounding property case names, citations, and legal propositions; Handa & Mallick [2024] FedCFamC2F 957 and Valu v Minister [2025] FedCFamC2G 95 establish this is a sanctionable disciplinary breach in Australia.
- Option exercise date miscalculated: AI misinterprets 'not less than 6 months before the expiry of the term' as 6 months after expiry, or miscounts days across a month boundary or leap year, causing the client to miss the option window — an irreversible loss with no curative power in most Australian retail lease regimes.

## Review checklist

The lawyer's review checklist

## Review checklist

Jurisdiction verified: correct state Act, current prescribed form, and current statute version applied to every AI-generated document — confirm the document explicitly identifies the governing Act and jurisdiction; reject any document that references a superseded form or the wrong jurisdiction's rules. Queensland Property Law Act 2023 check (if Qld): confirm that any contract for sale or vendor disclosure document uses the new approved seller disclosure statement and prescribed certificates under the Property Law Act 2023 (Qld) (commenced 1 August 2025), not the superseded Property Law Act 1974 framework. Victorian CIPT/duty check (if Vic commercial acquisition): confirm whether the property has already entered the CIPT regime (prior qualifying transaction post-1 July 2024 — check SRO Vic) and apply the correct duty treatment; stamp duty at standard rates applies on the entry transaction regardless. All case citations independently verified on AustLII or Jade.io: confirm citation, parties, court, year, and that the stated legal proposition appears in the judgment — never file AI-generated citations without this check; confirm Vic rent review cap advice reflects Aldi Foods [2024] VSC 799 not superseded VCAT decisions. All statutory deadlines and notice periods independently calculated and diarised: option exercise windows, disclosure statement service periods, notice-to-remedy and termination notice periods — independently read the lease wording and applicable statute; do not rely on AI date arithmetic; diary in firm's matter management system. All financial figures (stamp duty, CIPT, land tax, outgoings estimates, rent, incentives, GST) verified against live revenue office guidance and current lease or contract terms — AI figures are indicative only and may reflect superseded rates, an incorrect CIPT regime characterisation, or a wrong going-concern GST conclusion. Title search currency confirmed: live search obtained from the state titles registry no more than 48 hours before settlement or exchange; all registered instruments reviewed on their face, not only as summarised by AI; Qld prescribed certificates (if applicable) current. Planning certificate obtained directly from council or planning portal and checked against AI planning summary: zoning, permitted uses, overlays, and amendments on exhibition verified on the certificate date — AI cannot access live planning portals. Confidentiality and data handling confirmed: no client-identifying information (name, address, title reference, financial figures, counterparty identity) entered into public AI tools; only firm-approved, APP-compliant AI platforms used for matter work; ASCR Rule 9 compliance verified.

- Jurisdiction verified: correct state Act, current prescribed form, and current statute version applied to every AI-generated document — confirm the document explicitly identifies the governing Act and jurisdiction; reject any document that references a superseded form or the wrong jurisdiction's rules.
- Queensland Property Law Act 2023 check (if Qld): confirm that any contract for sale or vendor disclosure document uses the new approved seller disclosure statement and prescribed certificates under the Property Law Act 2023 (Qld) (commenced 1 August 2025), not the superseded Property Law Act 1974 framework.
- Victorian CIPT/duty check (if Vic commercial acquisition): confirm whether the property has already entered the CIPT regime (prior qualifying transaction post-1 July 2024 — check SRO Vic) and apply the correct duty treatment; stamp duty at standard rates applies on the entry transaction regardless.
- All case citations independently verified on AustLII or Jade.io: confirm citation, parties, court, year, and that the stated legal proposition appears in the judgment — never file AI-generated citations without this check; confirm Vic rent review cap advice reflects Aldi Foods [2024] VSC 799 not superseded VCAT decisions.
- All statutory deadlines and notice periods independently calculated and diarised: option exercise windows, disclosure statement service periods, notice-to-remedy and termination notice periods — independently read the lease wording and applicable statute; do not rely on AI date arithmetic; diary in firm's matter management system.
- All financial figures (stamp duty, CIPT, land tax, outgoings estimates, rent, incentives, GST) verified against live revenue office guidance and current lease or contract terms — AI figures are indicative only and may reflect superseded rates, an incorrect CIPT regime characterisation, or a wrong going-concern GST conclusion.
- Title search currency confirmed: live search obtained from the state titles registry no more than 48 hours before settlement or exchange; all registered instruments reviewed on their face, not only as summarised by AI; Qld prescribed certificates (if applicable) current.
- Planning certificate obtained directly from council or planning portal and checked against AI planning summary: zoning, permitted uses, overlays, and amendments on exhibition verified on the certificate date — AI cannot access live planning portals.
- Confidentiality and data handling confirmed: no client-identifying information (name, address, title reference, financial figures, counterparty identity) entered into public AI tools; only firm-approved, APP-compliant AI platforms used for matter work; ASCR Rule 9 compliance verified.

## Tasks (31)

| Task | Level | How AI is used | What the lawyer must review |
| --- | --- | --- | --- |
| Draft a commercial, retail or industrial lease from the heads of terms | Yellow | Produce a first-draft lease from the heads of terms and the firm's precedent, with a list of missing commercial points. | Check rent, outgoings, use, options, make-good and assignment Check any retail-lease mandatory content for the premises' jurisdiction |
| [Prepare the retail-lease disclosure statement](https://ailawframework.com/practice/commercial-property-and-leasing/prepare-the-retail-lease-disclosure-statement.md) | Yellow | Populate a first-draft retail-lease disclosure statement from the lease and matter data, and list financial figures that still need a source. | Use the current prescribed form Match rent, outgoings and incentives to the lease Confirm the disclosure period before commencement |
| Review title and encumbrances for a commercial purchase or lease | Yellow | From title, plan and searches, list easements, covenants, mortgages and use restrictions that affect the deal, with instrument references. | Read the instruments Confirm current title from a search the firm ordered |
| [Extract planning and zoning constraints that affect the intended use](https://ailawframework.com/practice/commercial-property-and-leasing/extract-planning-and-zoning-constraints-that-affect-the-intended-use.md) | Yellow | From the planning extracts on the file, list zone, overlays, permitted uses, height or floor-space limits and heritage flags with document cites. | Obtain a current planning certificate Do not treat a generated summary as a substitute for the live planning controls |
| Draft or redline the contract for sale or heads of agreement | Yellow | Produce a first-draft contract or heads of agreement from the commercial terms, or redline the other side's paper against the client's positions. | Check the heads of agreement is (or is not) binding as instructed Check conditions, tax and deposit mechanics work |
| Review a received lease and produce a tenant or landlord advice table | Yellow | Extract rent, reviews, outgoings, use, assignment, make-good, demolition, relocation and default into an issues table with clause references. | Advise on the client's instructions and any retail-lease rules that apply Do not treat the table as the advice |
| Draft breach, rent-arrears or termination notices | Yellow | From the lease and the arrears/breach facts, draft a notice that follows the lease's notice clause and list service methods required. | Check form, timing and address for service; a defective notice can void termination Check any statutory overlay for retail leases |
| Draft assignment or subletting consent papers | Yellow | From the lease, draft the consent request or consent deed, conditions and any required financial information list. | Check the lease's consent standard (reasonable vs absolute) Check any statutory prohibition on unreasonably withholding consent |
| Prepare an option-exercise and rent-review pack | Red | Assemble the lease with every variation, extension and deed of renewal, in order, so the terms now in force are the ones being worked from, then extract into… | The lawyer drafts and settles the exercise notice and any rent-review or dispute notice.… |
| Build a make-good and dilapidations schedule from the lease and reports | Yellow | Compare the lease make-good clause with the condition report and produce a schedule of claimed items with clause references. | Decide which items the clause actually requires Rely on photographs and the original condition report, not the generated schedule |
| Draft the commercial due-diligence report for an acquisition | Yellow | From leases, title, planning extracts and contracts, draft a DD report structure with issues, document cites and open questions. | Source every issue in a document Do not treat the report as complete until the searches the firm ordered are in |
| Summarise environmental and contamination reports for the property file | Yellow | From supplied reports, extract contamination findings, recommended works and any ongoing obligations into a table with page references. | Give environmental risk advice yourself, often with a consultant Do not treat the summary as a clearance |
| [Map the tax-on-supply issues for the sale or lease](https://ailawframework.com/practice/commercial-property-and-leasing/map-the-tax-on-supply-issues-for-the-sale-or-lease.md) | Red | From the contract facts (use, tenancies, registration, price), draft a tax-on-supply issues list: candidate treatments of the supply, with facts still needed. | Confirm the fact-specific tax treatment against current revenue-authority materials Get the accountant's input before settlement figures are fixed |
| [Prepare electronic-settlement workspace instructions](https://ailawframework.com/practice/commercial-property-and-leasing/prepare-electronic-settlement-workspace-instructions.md) | Yellow | Draft electronic-settlement workspace instructions and a lodgement sequence from the contract, title and lender details on the file. | Confirm roles, duty payment, discharges and funds in the live workspace and with the client Remember a generated note cannot see the workspace |
| Build a rent-and-outgoings reconciliation from the lease and invoices | Yellow | Compare invoiced rent, recoveries and outgoings with the lease and estimate of outgoings; list variances and missing supporting invoices. | Decide what is recoverable under the clause Check whether retail-lease disclosure caps recovery |
| Summarise a commercial lease into a key-terms sheet | Green | Extract rent, reviews, options, make-good and assignment terms with clause references. | Read the full lease, including schedules and variations. |
| Review a commercial real estate due-diligence report produced with AI | Yellow | Compare report entries with title, leases and searches. | Confirm completeness; sign the report. |
| Compare a tenant's proposed lease amendments against the landlord's standard lease | Green | Produce a clause-level comparison table of the markup against the precedent with flagged departures. | Confirm each departure and its commercial effect; check the retail-leases Act overlay. |
| Extract critical dates (options, rent reviews, make-good, expiry) across a lease portfolio | Green | Pull dates and notice periods from each lease into a diary schedule. | Spot-check each date against the lease; diarise from the source, not the output. |
| Summarise make-good and reinstatement obligations at lease end | Green | Summarise the make-good clauses and any schedules of condition into a checklist. | Verify against the lease, variations and condition reports. |
| Draft a plain-English lease summary for a tenant client | Yellow | Draft a summary of rent, outgoings, term, options, assignment and default clauses. | Lawyer checks accuracy and adds advice; summary is not advice on its own. |
| Review a landlord's AI-driven property-management data terms in a lease or building agreement | Yellow | List data-collection, privacy and smart-building clauses for the tenant to consider. | Lawyer assesses Privacy Act and confidentiality issues. |
| Summarise building data and smart-building terms in a lease | Green | Extract data and technology clauses. | Lawyer advises. |
| Prepare a leasing-market summary using AI analytics | Yellow | Summarise market data for rent review. | Valuer confirms. |
| Prepare a client explainer on how the firm uses AI | Green | Draft a transparency statement. | Principal approves. |
| Draft the landlord's affidavit on a claim for relief against forfeiture in the Supreme Court of New South Wales | Red | Do not generate the affidavit. List the lease, the default notices and the rent ledger the deponent will cover. | Take the affidavit in the landlord's own account and disclose that generative AI did not generate its content. |
| Prepare a chronology of default notices and the rent ledger for a Supreme Court of New South Wales lease dispute | Green | List notice dates and ledger entries from the lease file into a chronology. | Check every date and amount against the lease file. |
| Draft written submissions on the construction of a commercial lease in the Supreme Court of New South Wales | Yellow | Draft submissions from the lease and the authorities the lawyer has opened. | Verify in the body that every citation exists, is accurate and is relevant. |
| Draft the tenant's affidavit in a commercial lease dispute in the Supreme Court of Victoria | Yellow | Produce a draft affidavit from the lease and the tenant's instructions for the lawyer to verify. | A person verifies every fact against the lease and the instructions. |
| Draft written submissions on an alleged breach of a commercial lease in the Supreme Court of Victoria | Yellow | Draft submissions from the lease and the authorities the lawyer has opened. | Confirm each citation exists and stands for the proposition. Asking one artificial intelligence tool to confirm what another produced is not verification.… |
| Draft the tenant's affidavit in a lease possession claim in the Supreme Court of Western Australia | Red | Do not substitute the tenant's words. List the lease and the notices the tenant will address. | The affidavit stays in the tenant's own words. The practitioner who files it is responsible for it. |

## Jurisdiction notes

### New Zealand

#### Title and e-dealing

Land Transfer Act 2017 and Landonline certifications, as for residential e-dealings.

#### Not Australian law

No PEXA, no state retail-leases disclosure statement and no Australian stamp-duty calculator.

#### Tax

Confirm current New Zealand tax treatment with Inland Revenue material, not an Australian OSR/SRO guide.

- Do not let a tool certify or sign a Landonline instrument. The certifying practitioner is personally responsible under s 27 of the Land Transfer Act 2017.

Sources:

- [Land Transfer Act 2017](https://www.legislation.govt.nz/act/public/2017/0030/latest/whole.html) (checked 2026-09-23)
- [LINZ: certify and sign](https://www.linz.govt.nz/guidance/land-registration/land-registration-guide/certify-and-sign) (checked 2026-09-23)
- [Income Tax Act 2007](https://www.legislation.govt.nz/act/public/2007/97/en/latest/) (checked 2026-09-23)

### United States

Local name: Commercial property and leasing

#### State law

State law governs this work. Check the statutes, court rules and conduct rules of the state where the matter is. Do not import an Australian statute, form or court AI practice note.

#### Leases

Landlord-tenant and recording statutes are state law. Verify rent, default and notice terms in the signed lease and the current state statute, not a clause library for another state.

Sources:

- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-09-23)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*