PA Law Legal Video Guides · Commercial & Retail Leasing · South Australia
An offer to lease can have legal consequences before the formal lease is prepared. In South Australia, whether it creates a binding commitment depends on its wording and the circumstances. Do not assume it is only an expression of interest: get advice before signing.
Video by PA Law Pty Ltd · Approximately 1 minute 34 seconds · AI-assisted presentation · Published 25 September 2026
Is an offer to lease legally binding in South Australia?
It can be. The heading on the document does not, by itself, determine its effect. The terms and what has happened between the parties need to be considered. An assurance that the formal paperwork will come later is not a substitute for understanding what you are being asked to agree to now.
The Small Business Commission SA’s Retail and Commercial Leasing Guide warns that preliminary leasing documents can lead to a tenant being legally bound to accept a formal lease later.
What should I check before signing an offer to lease?
Use these questions to prepare for a document review. The proposed arrangement should make sense for your business both now and over the intended lease term.
- Rent and increases: What is the starting rent, and when and how can it change?
- Term and options: How long is the commitment, and what renewal options are available?
- Outgoings: Which additional costs will your business be responsible for?
- Repairs and maintenance: Who is responsible for the premises and relevant equipment?
- Permitted use: Does the proposed use cover what your business actually intends to do?
- Personal guarantees: Is anyone being asked to take on personal responsibility for the tenant’s obligations?
- Leaving early: What happens if your business needs to move, close or change its plans?
End-of-lease obligations also deserve attention. Read our related guide to commercial lease make-good clauses in South Australia.
What documents should I receive before entering the lease?
Where the Retail and Commercial Leases Act 1995 applies, disclosure and documentation requirements must be considered. The Small Business Commission’s guide explains the provision of a draft or sample lease, the leasing guide and a disclosure statement. Have the documents reviewed together and confirm whether the Act applies to your proposed tenancy.
Can I withdraw after signing an offer to lease?
Do not assume you can simply walk away. Seek advice promptly about the signed document and the circumstances before trying to change or withdraw from the arrangement. Provide the offer, any draft lease and relevant correspondence so the commitments and available options can be assessed.
Can PA Law review my offer to lease?
PA Law can review commercial and retail leasing documents in South Australia and explain the proposed obligations before you commit. We assist clients in Gawler, Evanston South, Adelaide and across the state.
Explore our commercial leasing services and commercial advice services, or request an appointment. Call 0431 614 696 and mention any signing deadline when you enquire.
Video transcript
Transcript prepared from YouTube captions, with punctuation and paragraph breaks added for readability.
You’ve found the perfect premises for your business. The agent gives you an offer to lease and says, “Just sign this so we can get the paperwork started.”
But here’s the problem. That document may be more important than you think. An offer to lease isn’t necessarily just an expression of interest.
Depending on what it says and what has happened between the parties, you may already have made commitments before the formal lease is even prepared. And that matters because a commercial lease can lock your business into significant obligations for years.
Before signing an offer to lease, you should understand things like the rent and how it increases, the length of the lease and any options, what outgoings you’ll be responsible for, who pays for repairs and maintenance, what you’re actually allowed to use the premises for, whether there’s a personal guarantee, and what happens if your business needs to leave early.
If the Retail and Commercial Leases Act applies, there may also be specific disclosure and documentation requirements.
So, if someone tells you, “Don’t worry, it’s only the offer to lease. We’ll deal with the legal stuff later,” don’t assume that means the document has no legal consequences. Get advice before you sign it.
And if you’ve already signed an offer to lease and now want to change or withdraw from the deal, get advice quickly rather than assuming you can simply walk away.
If you’re entering into a commercial or retail lease in South Australia, we can review the documents and explain what you’re agreeing to before you commit.
General information only, not legal advice. Whether an offer is binding and which leasing rules apply depend on the documents and your circumstances. Obtain advice about your proposed or signed agreement.
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