Heads Of Agreement Signed – What Now?

“What is, at its core a straightforward process, can often not run as smoothly as it should”.

You’ve signed a Heads of Agreement (HOA) for a new office premises — exciting step. But for many tenants, this is where confusion often starts.

The HOA is not the lease, but it is the document that locks in the commercial terms agreed between the Tenant and the Landlord. From here, the transaction moves into the legal and compliance phase of the commercial leasing process.

Below is a clear, step-by-step guide to what happens next when leasing office space in Brisbane, written for tenants navigating the commercial leasing world for the first time.

What Happens Immediately After a HOA Is Signed?

Once the HOA is executed, the Tenant will typically:

• Pay the deposit (commonly equivalent to one month’s gross rent)
• Wait for the Landlord’s lawyers to issue the formal legal documentation

The Landlord’s solicitors should then provide the following:

• The Lease Agreement
• The Incentive Deed (if an incentive applies)
• Bank Guarantee Guidelines

Each of these documents plays a critical role in finalising your commercial office lease.

Step 1: Lease Agreement

The Lease Agreement is the legally binding document that governs your occupation of the office premises. It sets out:

• Lease term and commencement date
• Rent structure (gross or net)
• Outgoings and review mechanisms
• Make good obligations
• Repair and maintenance responsibilities
• Default and termination provisions

Most tenants will (and should) engage a commercial property lawyer to review the lease and incentive deed. This is something we always recommend — good legal advice is inexpensive compared to the risk of getting it wrong.

It is very common for there to be a few rounds of amendments between the Tenant’s and Landlord’s lawyers before the lease is finalised.

Executing the Lease

Once agreed:

• The Tenant signs first
• Typically three (3) original copies are required

In Queensland:

• Leases longer than three (3) years generally must be registered with the Titles Office and require wet signatures
• Leases under three (3) years are usually not required to be registered and can often be executed electronically

This distinction often catches first-time tenants out.

Step 2: Incentive Deed (If Applicable)

If the lease includes an incentive, a separate Incentive Deed will be issued.

This document outlines the agreed incentive, such as:

• Rent-free periods or rent abatements
• Fit out contributions
• Early access periods

The Incentive Deed:

• Sits alongside the lease
• Is not typically disclosed to third parties
• Must be read carefully, as it often contains clawback provisions if the tenant defaults early

Execution usually involves:

• Two (2) copies (one for the Landlord and one for the Tenant)

Incentive deeds can generally be signed electronically, provided the platform supports deed execution and witnessing (where required) and all parties consent.

Step 3: Bank Guarantee

A Bank Guarantee is a financial security held by the Landlord in case the Tenant fails to meet their lease obligations.

The process to obtain a bank guarantee can take anywhere from 1 to 4 weeks, depending on the bank and the Tenant’s financial structure — so timing is critical.

You will receive Bank Guarantee Guidelines from the Landlord’s lawyers confirming:

• Landlord (Favouree) details
• Tenant entity and premises details
• Exact guarantee amount
• Any additional landlord-specific requirements

Important Tip

Always request a draft bank guarantee first.
Have the Landlord’s lawyer confirm it is correct before issuing the final version — this helps avoid unnecessary amendments and double bank fees.

Step 4: Insurances

Before access is granted, Tenants are required to have certain insurances in place. These are standard across most commercial office leases in Brisbane.

Typically required:

• Public Liability Insurance (often up to $20 million)
  The certificate must name the Landlord (and sometimes the property manager) as an interested party.
• Plate Glass Insurance
  Covers damage to windows, doors and internal glass within the premises.
• Workers Compensation Insurance
  Evidence of current WorkCover Queensland coverage is usually required.
• Contents Insurance (not mandatory but strongly recommended)
  Covers the Tenant’s furniture, equipment and fit out against theft, fire and damage.

Insurances must be provided before keys or access are released.

When Will Access Be Granted?

The Landlord will generally not provide access to the premises until their lawyers confirm receipt of:

• Correctly executed lease documents
• The original bank guarantee
• All required insurance certificates

Until these items are finalised, access delays are common — even if the space is physically vacant.