9th December, 2025

 

Leaseback agreements are becoming more common in the NSW property market. They offer flexibility to both purchasers and vendors. These arrangements create a simple structure that suits many different property types. Although they can sound complex at first, the concept is easy to grasp.

 

What Is a Leaseback Agreement?

A leaseback agreement happens when a property owner sells their property and then leases it back. The vendor becomes the landlord, while the purchaser remains as the tenant. This arrangement begins immediately after settlement. It can be a mutually beneficial setup when both parties want security and stability.

 

Who Uses Leaseback Agreements?

These agreements appear across many sectors:

 

Why Purchasers Use Leasebacks

Purchasers choose leasebacks for different reasons. Some need fast access to capital while keeping their current lifestyle. Others want time to plan their next move. Businesses also use them to support cash flow while remaining in the same location. This approach simplifies their operations and reduces disruption.

 

Why Vendors Benefit

Vendors see leasebacks as predictable investments. They can gain a guaranteed tenant from day one. This reduces vacancy risk and simplifies property management. Many leaseback properties also receive careful maintenance during the lease term. Investors appreciate this level of certainty, especially in rapidly changing markets.

 

How the Process Works

The purchaser agrees to a sale price. The vendor then agrees to lease the property back under a separate lease. Both parties negotiate rent, lease length, and responsibilities. Terms vary, but they usually support the needs of each side. These terms also ensure clarity before settlement.

 

Things to Consider

Leaseback arrangements involve several practical factors beyond property type. Clear contract terms are essential, especially around rent, outgoings, responsibilities, and access rights. Insurance requirements also need attention, as coverage often changes after settlement.

Many agreements include maintenance standards to keep the property in good condition, and lease payments should be factored into long-term financial planning. Tax implications can also arise–particularly for commercial properties–so professional advice is important.

Due diligence is crucial, a conveyancer can help by reviewing the contract, identifying potential issues, and ensuring the leaseback arrangement is structured to protect all parties involved.

 

How We Can Help

Every contract carries obligations and risks. Purchasers and vendors must understand their rights before signing. Therefore, professional conveyancing guidance is essential for a smooth outcome.

Bangalow Conveyancing can help you understand your options. We review contracts, negotiate fair terms, and protect your interests. Our team at Bangalow Conveyancing ready to assist with all leaseback agreement needs across the Northern Rivers, in Byron Bay, Lismore, Bangalow, Murwillumbah, Ballina and even the Gold Coast.