Commercial Leasing

Understanding Form 7 Breach Notices in Queensland Commercial Leases

April 3, 2025

In the realm of commercial leasing, both landlords and tenants must navigate various legal obligations. One critical aspect is the issuance of breach notices, specifically the Form 7 Notice to Remedy Understanding Form 7 Breach Notices in Queensland Commercial Leases

A Form 7 Notice to Remedy Breach is one of the most important documents in a Queensland commercial lease dispute. For landlords, it may be a necessary step before taking enforcement action. For tenants, it is a warning document that should be reviewed urgently before the dispute escalates into termination, lockout, court action, loss of security, or damage to the business relationship.

In Queensland, the current Form 7 notice framework is governed by the Property Law Act 2023 (Qld). Older articles and precedents may refer to the former Property Law Act 1974 (Qld), but landlords, tenants and managing agents should make sure they are using the current approved form and the correct procedure.

At Ensure Legal, we assist landlords, tenants, business owners and commercial property clients with commercial lease disputes, breach notices, lease enforcement, negotiation, mediation and practical resolution strategies.

Quick Summary

A Form 7 Notice to Remedy Breach is a formal notice issued by a lessor to a lessee where the lessor alleges that the tenant has breached a term of the lease.

Common examples include unpaid rent, unpaid outgoings, unauthorised use of the premises, failure to maintain the premises, unauthorised assignment or subletting, or failure to comply with make good obligations.

Before issuing or responding to a Form 7 notice, the lease, the alleged breach, the notice period, service method, evidence and commercial consequences should be reviewed carefully.

Need urgent advice? Speak with our commercial lease dispute lawyers in Brisbane.

What Is a Form 7 Notice to Remedy Breach?

A Form 7 Notice to Remedy Breach is a prescribed notice used under the Property Law Act 2023 (Qld). It is used by a landlord, also called a lessor, to notify a tenant, also called a lessee, that the landlord alleges the tenant has breached a term of the lease.

The notice is not simply a complaint letter. It is a formal legal document that can affect the landlord’s right to re-enter the premises, forfeit the lease or take further enforcement action if the breach is not remedied within a reasonable time.

For tenants, receiving a Form 7 notice should be treated seriously. Even if the tenant disagrees with the landlord’s position, ignoring the notice may create unnecessary legal and commercial risk.

Common Breaches That May Lead to a Form 7 Notice

Commercial lease breaches can arise in many different ways. The most common examples include:

failure to pay rent on time;
failure to pay outgoings, utilities or other lease charges;
unauthorised use of the premises;
operating outside the permitted use in the lease;
unauthorised assignment, transfer or subletting;
failure to maintain the premises;
failure to repair damage;
failure to comply with insurance obligations;
failure to comply with trading obligations;
unauthorised alterations or fitout works;
failure to comply with make good obligations;
failure to provide required documents, certificates or approvals.

The relevant question is not only whether something has gone wrong. The key question is whether the tenant has breached a specific lease obligation and whether the notice correctly identifies that breach.

Why Form 7 Notices Matter in Commercial Lease Disputes

A Form 7 notice can become the foundation for serious enforcement steps. If the tenant does not remedy the breach within the time required by the notice, the landlord may seek to rely on the notice to take further action.

Depending on the lease, the breach and the circumstances, this may include:

termination of the lease;
re-entry into the premises;
changing locks;
claiming rent arrears or other money owed;
claiming damages;
calling on a bank guarantee or security deposit;
commencing court proceedings;
negotiating a surrender or settlement deed.

However, landlords should not assume that issuing a Form 7 notice automatically gives them the right to lock out the tenant. The notice must be valid, the breach must be properly identified, the tenant must be given reasonable time to remedy the breach, and the lease and legislation must be followed carefully.

Practical point: A defective Form 7 notice can weaken the landlord’s position. If a landlord relies on an invalid notice to lock out a tenant, the landlord may face a claim for compensation or other relief.

Current Law: Property Law Act 2023

One important update is that Queensland’s property law framework has changed. Older legal materials may refer to a Form 7 Notice to Remedy Breach of Covenant under section 124 of the Property Law Act 1974 (Qld).

The current framework is under the Property Law Act 2023 (Qld). In practical terms, landlords and property managers should make sure they are using the current approved Form 7 Notice to Remedy Breach and not an outdated template.

This is particularly important where:

the lease was signed before the new Act commenced;
the landlord is using an old precedent or template;
a managing agent has prepared the notice without legal review;
the notice is being used to support termination or re-entry;
there are guarantors, subtenants, mortgagees or assignors involved;
the tenant disputes the validity of the notice.

For official reference, see the Queensland Government’s Property Law Act 2023 Form 7 Notice to Remedy Breach and the Queensland Small Business Commissioner’s factsheet on breach notices.

What Should a Form 7 Notice Include?

A Form 7 notice should clearly identify the breach and what must be done to remedy it. A landlord should avoid vague, incomplete or confusing wording.

A properly prepared notice should usually address:

the correct parties to the lease;
the correct premises;
the lease date and relevant lease details;
the specific lease term or obligation allegedly breached;
the facts relied on by the landlord;
what the tenant must do to remedy the breach;
any amount claimed, if financial compensation is sought;
a reasonable time for the tenant to remedy the breach;
the correct method of service;
any required copies to designated persons.

If the notice relates to unpaid rent or outgoings, the landlord should be careful to state the amount claimed, how it is calculated, and the period to which the amount relates.

Reasonable Time to Remedy the Breach

A Form 7 notice must give the tenant a reasonable time to remedy the breach. There is no universal number of days that will be reasonable in every case.

What is reasonable may depend on:

the nature of the breach;
the seriousness of the breach;
whether the breach involves payment of money;
whether the breach involves repair works;
whether third-party contractors are required;
whether council, building or regulatory approvals are needed;
whether the tenant can realistically comply within the timeframe;
the history of communication between the landlord and tenant.

For example, a short timeframe may be more defensible for payment of overdue rent than for complex repair or reinstatement works that require quotes, contractors or approvals.

Service of the Form 7 Notice

Even a well-drafted Form 7 notice can be undermined if it is not served correctly. The lease should be reviewed to confirm how notices must be served.

Common service issues include:

whether the notice must be served by post, hand delivery, email or another method;
whether email service is permitted by the lease;
whether the notice was sent to the correct address;
whether the notice was sent to the correct legal entity;
whether there are multiple tenants;
whether there are guarantors or other designated persons;
whether the notice was served within any required timeframe.

Landlords should keep clear evidence of service, including email records, delivery records, tracking, correspondence and file notes.

Designated Persons: A Common Trap for Landlords

Under the current Queensland framework, a landlord may need to provide a copy of the Form 7 notice to certain designated persons if their names and addresses are known to the landlord.

Designated persons may include:

a sublessee;
a guarantor;
a mortgagee;
an assignor who remains relevant under the lease structure.

This is an important procedural issue. If the landlord is preparing a Form 7 notice with the intention of later terminating the lease, re-entering the premises or taking enforcement action, the designated person requirements should be checked before the notice is issued.

What Should a Tenant Do After Receiving a Form 7 Notice?

A tenant who receives a Form 7 notice should act quickly. The worst response is usually to ignore it.

Practical steps include:

record the date and time the notice was received;
check how the notice was served;
review the lease and the alleged breach;
check whether the notice identifies the breach clearly;
check whether the required remedy is clear and realistic;
check whether the timeframe is reasonable;
gather payment records, emails, invoices, photos or other evidence;
seek legal advice before admitting liability;
consider whether the breach can be remedied quickly;
communicate in writing if an extension or clarification is needed.

A tenant may have several possible responses depending on the situation.

1. Remedy the Breach

If the breach is valid and can be fixed, the tenant may decide to remedy the breach within the required timeframe. For example, this may involve paying arrears, providing documents, ceasing an unauthorised use, repairing damage or complying with an outstanding lease obligation.

2. Dispute the Notice

If the tenant believes the notice is invalid, inaccurate, exaggerated or unjustified, the tenant may dispute the notice. This should be done carefully and preferably with legal advice, because a poorly drafted response may harm the tenant’s position.

3. Negotiate a Resolution

Some disputes can be resolved commercially. For example, the tenant may propose a payment plan, repair timetable, temporary arrangement, agreed variation, surrender, or settlement deed.

4. Seek Relief or Urgent Legal Protection

In serious cases, a tenant may need urgent legal advice about court relief, injunctions, lockout risk, preservation of business assets, or protection of lease rights.

Can a Landlord Lock Out a Tenant After a Form 7 Notice?

A landlord should be very careful before changing locks or re-entering the premises. A Form 7 notice is often part of the legal pathway, but it does not mean every lockout is automatically lawful.

Before taking re-entry action, the landlord should check:

whether the lease gives a right of re-entry;
whether the breach is properly established;
whether the Form 7 notice is valid;
whether reasonable time to remedy has expired;
whether the tenant has remedied the breach;
whether designated persons were properly notified;
whether court relief may be sought;
whether the premises have been abandoned;
whether there are goods, stock, equipment or customer property inside the premises.

An unlawful lockout can expose the landlord to claims. Legal advice should be obtained before re-entry, especially where the tenant is still operating from the premises.

What If the Tenant Has Abandoned the Premises?

Different considerations may apply if the tenant has clearly abandoned the premises. The current Queensland framework includes specific rules dealing with situations where the landlord reasonably believes the tenant has given up possession.

However, landlords should not assume abandonment lightly. A tenant may be temporarily closed, trading irregularly, conducting renovations, dealing with financial stress, or moving stock. Before treating premises as abandoned, the landlord should gather evidence and obtain advice.

Relevant evidence may include:

unpaid rent history;
communication records;
inspection photographs;
returned mail;
disconnected services;
empty premises or removal of stock;
statements from neighbours or centre management;
attempts to contact the tenant and guarantors.

Retail Shop Leases and Form 7 Notices

Some commercial premises may also be retail shop leases under Queensland law. Retail shop leases can involve additional statutory obligations and dispute pathways.

If the dispute involves a shop, restaurant, café, salon, takeaway business or premises in a shopping centre, the parties should check whether the Retail Shop Leases Act 1994 (Qld) applies.

Retail shop lease disputes may involve additional issues such as disclosure statements, outgoings, relocation, demolition, rent review, assignment and statutory mediation requirements.

For specific assistance, see our retail shop lease lawyers in Queensland.

Rent Arrears and Form 7 Notices

Rent arrears are one of the most common reasons for a Form 7 notice. However, rent arrears disputes are not always simple.

Before issuing or responding to a rent-related notice, check:

whether the lease states rent is payable in advance;
whether GST has been correctly applied;
whether outgoings are properly recoverable;
whether interest has been calculated correctly;
whether previous payments have been allocated correctly;
whether the landlord has issued correct invoices;
whether there is a rent review dispute;
whether any rent concession, abatement or side agreement exists.

For related reading, see our guides on GST in commercial leases in Queensland and annual rent increases and market reviews in commercial leases.

Make Good Breaches and Form 7 Notices

Make good disputes can also trigger breach notices, especially near the end of the lease. These disputes often involve disagreement about the condition in which the tenant must return the premises.

Key questions include:

what does the make good clause actually require?
does the tenant need to remove fitout?
does the tenant need to reinstate the premises?
is there an entry condition report?
are there photos showing the original condition?
were alterations approved by the landlord?
are the landlord’s claimed costs reasonable?

For assistance, see our commercial lease make good lawyers in Queensland.

Assignment and Subletting Breaches

A tenant may breach the lease if it assigns, transfers, licenses or sublets the premises without consent where consent is required.

This issue commonly arises during a business sale. The buyer may want to take over the premises, but the lease may require landlord consent, financial information, references, disclosure documents or a formal deed of assignment.

For business sellers and buyers, timing is critical. Leaving lease assignment issues until shortly before settlement can delay or derail the sale.

For assistance, see our assignment of lease lawyer Queensland service.

Checklist for Landlords Before Issuing a Form 7 Notice

Landlord Checklist

Have you reviewed the signed lease and all variations?
Have you identified the exact clause breached?
Is the alleged breach supported by evidence?
Is the breach capable of being remedied?
Have you used the current approved Form 7?
Have you clearly stated what the tenant must do?
Have you given a reasonable time to remedy?
Have you calculated any money claim correctly?
Have you checked the correct service method?
Have you considered designated persons?
Have you considered whether the lease is a retail shop lease?
Have you obtained advice before threatening lockout or termination?

Checklist for Tenants After Receiving a Form 7 Notice

Tenant Checklist

When did you receive the notice?
Was it served correctly?
Is your legal entity named correctly?
Does the notice identify the correct lease?
Does the alleged breach actually exist?
Does the notice identify the relevant clause?
Is the required remedy clear?
Is the timeframe reasonable?
Can you remedy the breach immediately?
Do you need an extension in writing?
Do you dispute the amount claimed?
Do you need urgent advice about lockout risk?

Common Mistakes with Form 7 Notices

Both landlords and tenants can make costly mistakes when dealing with Form 7 notices.

Landlord Mistakes

using an outdated Form 7 template;
citing the wrong legislation;
describing the breach too vaguely;
claiming amounts without proper calculation;
giving an unrealistic timeframe to remedy;
serving the notice incorrectly;
failing to notify designated persons;
locking out the tenant too quickly;
failing to consider whether the lease is a retail shop lease;
treating a commercial dispute as a simple debt recovery issue.

Tenant Mistakes

ignoring the notice;
assuming the notice is invalid without checking;
responding emotionally instead of legally;
admitting the breach without advice;
failing to keep written records;
missing the deadline to remedy;
withholding rent without advice;
failing to ask for an extension in writing;
leaving the premises without dealing with the lease;
waiting until after lockout to seek advice.

How Form 7 Notices Fit into a Lease Dispute Strategy

A Form 7 notice should not be treated in isolation. It is usually one part of a broader lease dispute strategy.

For landlords, the strategy may involve recovering arrears, preserving the value of the premises, protecting future rent, dealing with guarantors, negotiating surrender, or preparing for lawful re-entry.

For tenants, the strategy may involve preserving the lease, avoiding lockout, negotiating time to pay, disputing excessive claims, protecting business goodwill, or exiting the premises on agreed terms.

For more detail on lease disputes generally, read our guide on commercial leasing disputes in Queensland.

How Ensure Legal Can Assist

Ensure Legal assists landlords, tenants, business owners and commercial property clients with commercial lease breach notices and related disputes.

We can assist with:

reviewing Form 7 notices;
drafting Form 7 notices for landlords;
responding to breach notices for tenants;
advising on rent arrears and outgoings disputes;
advising on lockout and re-entry risks;
reviewing commercial leases;
negotiating payment plans or settlement deeds;
advising on retail shop lease disputes;
advising on assignment, subletting and business sale issues;
advising on make good and end-of-lease disputes.

Frequently Asked Questions

What is a Form 7 Notice to Remedy Breach?

A Form 7 Notice to Remedy Breach is a formal notice used in Queensland where a landlord alleges that a tenant has breached a term of a lease. It tells the tenant what breach is alleged and what must be done to remedy it.

Is a Form 7 notice the same as termination?

No. A Form 7 notice is not itself the same as termination. It is usually a step that may allow the landlord to take further action if the tenant does not remedy the breach within a reasonable time.

Can a tenant dispute a Form 7 notice?

Yes. A tenant may dispute a Form 7 notice if the alleged breach is wrong, the notice is defective, the amount claimed is incorrect, the timeframe is unreasonable, or the landlord has not followed the lease or legislation.

How much time must a landlord give to remedy the breach?

The tenant must be given a reasonable time to remedy the breach. What is reasonable depends on the type of breach, the steps required to fix it, the lease terms and the circumstances.

Can a landlord change the locks after issuing a Form 7 notice?

A landlord should obtain legal advice before changing locks or re-entering the premises. The landlord must check whether the notice is valid, whether reasonable time has expired, whether the breach remains unremedied and whether all procedural requirements have been followed.

Does Form 7 apply to retail shop leases?

Form 7 notices may be relevant to retail shop leases, but retail shop leases may also involve additional rules and dispute pathways. If the premises may be a retail shop, specific advice should be obtained.

What should I do if I receive a Form 7 notice?

Record when you received it, review the lease, check the alleged breach, gather evidence, consider whether the breach can be remedied, and seek legal advice urgently before the deadline expires.

Speak to a Commercial Lease Lawyer in Brisbane

A Form 7 notice can have serious consequences for both landlords and tenants. The earlier the lease, notice and evidence are reviewed, the better the chance of avoiding unnecessary escalation.

If you are dealing with a Form 7 notice, rent arrears, lease breach, lockout risk, make good dispute, assignment issue or retail shop lease dispute, Ensure Legal can assist.

Need help with a Form 7 notice?

Send us the lease, Form 7 notice, invoices, emails and any relevant documents. We can review the issue and help you decide the next step.

Contact Ensure Legal