---
title: "End-of-lease make-good: checklist, schedule of works, settlement letter and return of security (NSW notes)"
url: "https://ailawframework.com/precedents/commercial-property-and-leasing/end-of-lease-make-good-checklist-and-letter"
type: "precedent"
site: "AI Law Framework"
id: "a10-end-of-lease-make-good-checklist-and-letter"
area_id: "A10"
kind: "checklist"
ai_level: "yellow"
version: 1
task_ids: ["A10-T1-R11", "A10-B7-3"]
law_stated_as_at: "2026-10-18"
---

# End-of-lease make-good: checklist, schedule of works, settlement letter and return of security (NSW notes)

> A checklist and letter set for the end of a commercial or retail lease: reading the make-good obligations, building the schedule of works from condition reports, a cash-settlement letter, the NSW damages cap for repair…

Canonical page: https://ailawframework.com/precedents/commercial-property-and-leasing/end-of-lease-make-good-checklist-and-letter  
Law stated as at: 2026-10-18

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

A checklist and letter set for the end of a commercial or retail lease: reading the make-good obligations, building the schedule of works from condition reports, a cash-settlement letter, the NSW damages cap for repair covenants and the return of bank guarantees and bonds.

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Commercial Property & Leasing](https://ailawframework.com/precedents/commercial-property-and-leasing.md)
- Jurisdictions: New South Wales, Australia
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-18
- Status: Maintained. Checked on 2026-10-18 against the 3 authorities it cites, for New South Wales and Australia.

## When to use it

Use 6 to 12 months before a lease ends, or when the parties start discussing exit, for either the lessor or the lessee. It also helps price a make-good claim after the lessee has left.

## Used for these tasks

- [Build a make-good and dilapidations schedule from the lease and reports](https://ailawframework.com/practice/commercial-property-and-leasing.md#A10-T1-R11)
- [Summarise make-good and reinstatement obligations at lease end](https://ailawframework.com/practice/commercial-property-and-leasing.md#A10-B7-3)

## How AI may be used

AI may extract the make-good clauses and build the schedule of works from the lease, plans and condition reports; the lawyer checks what the lease actually requires and the client decides any settlement figure.

**AI may:**

- Extract make-good, reinstatement, fit-out removal, yielding up and security clauses from the lease, variations and fit-out approvals
- Build a schedule of works by comparing the entry condition report, plans and photos with the current condition
- Diarise expiry, notice and security return dates

**AI must not:**

- Must not set or recommend a cash settlement amount
- Must not treat a cost estimate as the measure of damages where the s 133A cap may apply
- Must not send the claim or the response letter

**The lawyer checks:**

- The lease wording has been read for what must be removed, reinstated or repaired, to what standard, and by when (before or after expiry)
- Works in the schedule are traced to a lease obligation and the baseline condition, and wear and tear exclusions are applied
- For a damages claim for failure to repair or leave in repair, the diminution in value of the reversion has been considered
- The security return dates and the method (bank guarantee, or bond held by NSW Fair Trading for retail leases) are correct

## Authorities

- [Conveyancing Act 1919 (NSW) s 133A(1) (damages for breach of a covenant to repair, or to leave premises in repair at the end of a lease, capped at the diminution in value of the reversion)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1919-006)
- [Retail Leases Act 1994 (NSW) s 16BA (lessor must return a bank guarantee within 2 months after the lessee completes performance of the secured obligations)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046)
- [Retail Leases Act 1994 (NSW) ss 16C and 16G (security bonds deposited with the Secretary; application for payment out in the approved form)](https://legislation.nsw.gov.au/view/html/inforce/current/act-1994-046)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/commercial-property-and-leasing/end-of-lease-make-good-checklist-and-letter and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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