Understanding Leaseback Apartment Agreements In Australia

Landlords in South Australia listing a property for sale now have a new legal reason to end a tenancy, so long as they’ve signed a sales agency agreement with a registered agent. That change took effect from 1 September 2025, and it’s one of several updates that reshape what a leaseback agreement or any standard tenancy looks like in the state. Whether you’re a tenant, landlord, or investor, the rules around applications, terminations, and compliance have shifted.

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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.

1 September 2025
Effective date for new rental forms and termination rules
CBS.sa.gov.au

1 January 2026
Mandatory start date for new Form A1
CBS.sa.gov.au

4 per year
Maximum routine inspections allowed
CBS.sa.gov.au

2024–2025
Two-phase reform rollout (July 2024 + Sept 2025)
CBS.sa.gov.au

South Australia’s rental reforms began rolling out from July 2024, with the September 2025 changes completing another set of recommendations from the cabinet’s ‘A Better Deal for Renters’ package. The reforms are the biggest tenancy law update in 30 years. For anyone involved in leaseback agreements or standard leases, the new rules affect how you apply, how long you stay, and what happens when a property goes to market. Here’s what you actually need to know.

Key Takeaways: The Four Biggest Changes and What They Mean

New single application form
Mandatory Form A1 from 1 January 2026 replaces multiple landlord-specific forms. Each tenant on the lease must submit their own.

Sales agency termination power
Landlords can end a tenancy if they’ve signed a sales agency agreement with a registered agent to sell the property.

Rent increase cap
Rent cannot be increased more than once in 12 months. This applies from March 2024.

Pet and modification rights
Clear guidelines for pets in rentals and minor alterations. Landlords cannot unreasonably refuse.

One term you’ll encounter in these reforms is prescribed reason — a legally defined ground for ending a tenancy. Without one, a landlord cannot terminate a fixed-term lease early.

Prescribed reason
A legally defined ground that a landlord must have to end a tenancy. The September 2025 reforms add “entering a sales agency agreement” as a new prescribed reason.

What I tend to notice is that most tenants and landlords focus on rent prices and bond amounts, but the real game-changer here is the application process and termination rules. The new rental rights framework gives tenants more stability while giving landlords clearer pathways to sell or redevelop.

The New Form A1 and Application Process

From 1 September 2025, South Australia introduced a single rental application form called Form A1. It replaces the previous system where each landlord or agent could use their own application forms. The form is mandatory from 1 January 2026, meaning every prospective tenant must use it.

Each tenant listed on the lease must complete a separate Form A1. You can also indicate a preferred tenancy duration on the form, which gives tenants a chance to say whether they want a 6-month, 12-month, or longer lease. The form does not apply to SA Housing Trust properties, National Rental Affordability Scheme participants, NDIS providers, registered Community Housing providers, or Australian registered charity and not-for-profit providers.

→ Scroll right to see all columns

Source: SA Rental Reform overview
Who must use Form A1Who is exemptEffective date
All prospective tenants on standard residential leasesSA Housing Trust properties1 January 2026 (mandatory)
Each tenant separately (not one form per household)NRAS participants, NDIS providersAvailable from 1 September 2025
Tenants indicating preferred durationRegistered Community Housing, charities, not-for-profitsVoluntary until 1 January 2026

The application process itself stays the same: you submit the form, the agent or landlord reviews it, and they decide. But the standardisation means you’re not filling out different forms for every property. For landlords and agents, it means you cannot add extra questions or criteria that aren’t on the form. The rental application process is now uniform across the state.

Why the date split matters
From 1 September to 31 December 2025, agents can use either the old forms or the new Form A1. After 1 January 2026, only Form A1 is accepted. If you’re applying during this window, check which form the agent uses — you don’t want to submit the wrong version.

Common Mistakes Landlords and Tenants Make With the New Rules

Using the wrong application form

The biggest trap between September 2025 and January 2026 is the dual-system period. Agents can still accept old forms, but come 1 January 2026, any application on a non-Form A1 will be invalid. Tenants who apply late in December using an old form risk having to reapply. Landlords who don’t update their processes by the deadline could face applications that don’t meet legal requirements. If you’re unsure about the correct form, consulting a real estate lawyer can clarify the requirements.

Thinking the sales agency termination is automatic

The new prescribed reason for ending a tenancy when a landlord signs a sales agency agreement is not a shortcut. The landlord must have a signed agreement with a registered agent, and the termination must follow the prescribed notice periods. A verbal instruction to sell does not qualify. Tenants can challenge a termination if the landlord hasn’t properly documented the agency agreement. This is one area where having a landlord-tenant law specialist review the paperwork can prevent disputes.

Forgetting the pet and modification rules

From July 2024, landlords cannot unreasonably refuse pets or minor safety modifications. But “unreasonably refuse” is not a blanket permission. Tenants still need to request in writing, and the landlord can say no with a valid reason — for example, if the property is strata-titled and the building prohibits pets. Tenants who assume they can bring in a pet without approval risk breaching the lease. The same applies to modifications like installing a child safety gate or a fixed clothesline.

Overlooking the 12-month rent increase rule

Rent cannot increase more than once every 12 months. This applies from March 2024. Some landlords assume they can raise rent at the end of a fixed-term lease regardless of timing, but if the last increase was less than 12 months ago, the new increase is invalid. Tenants who pay a rent increase that breaks this rule can apply to SACAT to have it reversed. For landlords offering rent discounts, the 12-month rule applies to the base rent, not the discounted amount — so raising the base rate still counts as an increase.

Navigating the Updated Termination Rules and Compliance

How termination now works with a sales agency agreement

If a landlord wants to sell a tenanted property, they must first sign a sales agency agreement with a registered agent. That agreement becomes the prescribed reason for termination. The landlord then serves notice on the tenant. The notice period depends on the type of lease: fixed-term leases require the landlord to wait until the end of the term unless the lease allows earlier termination, while periodic tenancies follow the standard notice periods. The SA government fact sheet on terminating a tenancy, updated 1 September 2025, details the required notice periods and evidence requirements. Tenants who receive a termination notice under this reason should request a copy of the signed sales agency agreement to verify it exists.

Minimum housing standards and inspection limits

From July 2024, routine inspections are capped at four per year. Landlords cannot enter the property more frequently without a specific reason, such as an emergency or a scheduled repair. The property must also meet minimum housing standards, which cover structural soundness, weatherproofing, and basic amenities. If a property doesn’t meet these standards, the tenant can request repairs through the proper channels. For landlords, non-compliance with minimum standards can attract penalties — the reforms introduced tougher penalties for breaches of rental protections.

What happens with student accommodation and rooming houses

Purpose-built student accommodation providers can now end a fixed-term tenancy if a student does not respond to a lease renewal offer within 30 days. This is a new prescribed reason specific to student housing. Rooming house agreements also have expanded termination grounds, now aligned with residential tenancies. For tenants in rooming houses, the protections around notice periods and prescribed reasons now match those for standard rental properties. The early termination fee rules still apply, but the new ground gives providers more certainty.

Evidence requirements for termination

Landlords must provide evidence when serving a termination notice. The updated evidence requirements (PDF) from 1 September 2025 specify what documentation is needed for each prescribed reason. For a sales agency agreement, that means the signed agreement itself. For non-payment of rent, it means the rent ledger. For domestic abuse situations, the evidence requirements follow a separate process to protect tenant safety. The Tenant Advice and Advocacy Service (RentRight SA on 1800 060 462) can help tenants who need to understand their rights.

Frequently Asked Questions

Does the new Form A1 apply to leaseback agreements?
Yes, if the leaseback arrangement is a standard residential tenancy. The form is required for all prospective tenants on standard leases. Leaseback agreements that involve a commercial or corporate structure may fall outside the residential tenancy framework.
Can a landlord sell a property during a fixed-term lease?
Yes, but only if they have a signed sales agency agreement. The new prescribed reason allows termination, but the tenant is entitled to proper notice and the tenancy continues until the end of the fixed term unless the lease allows earlier termination.
How do I check if a rent increase is valid?
Check the date of the last increase. If it was less than 12 months ago, the new increase is invalid. You can apply to SACAT to have an invalid increase overturned. Keep records of all rent payments and increase notices.
What counts as a minor alteration I can make without permission?
Minor alterations include safety modifications like childproofing, installing a fixed clothesline, or securing furniture. The tenant must still request in writing, and the landlord can only refuse on reasonable grounds. Structural changes are not covered.
Are there penalties for landlords who don’t follow the new rules?
Yes. The 2023–2024 reforms introduced tougher penalties for breaches of rental protections. Fines reflect present-day values rather than the outdated amounts previously in place. Tenants can also seek compensation through SACAT.
What happens if I’m applying during the September–December transition period?
Agents can accept either the old forms or the new Form A1 until 31 December 2025. After 1 January 2026, only Form A1 is valid. If you submit an old form in late December, you may need to resubmit. Check with the agent which form they require.

What the September 2025 Changes Mean for the Coming Year

The most significant shift from these reforms is the standardisation of rental applications. Once Form A1 becomes mandatory in January 2026, every tenant in South Australia will use the same form, making the process faster and more transparent. For landlords, the new sales agency termination ground provides a clear legal path to sell a tenanted property, but it comes with documentation requirements that can’t be ignored. The choice between lease types becomes more consequential when you factor in the 12-month rent cap and the four-inspection limit. If you’re entering a leaseback agreement or any tenancy, the key is knowing what’s on the form, what’s in the notice, and what your rights are under the new framework.

Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.

If this was useful, you might also want to read How to Verify Your Rental History Before Renting an Apartment.

Sources and Further Reading

Rental Rights Revolution: Know Your Power as an AU Tenant — A broader look at tenant protections across Australia, including what changed in other states.

Understanding Early Termination Fees When Renting in Australia — How termination costs work under the new prescribed reason rules.

Government of South Australia, Consumer and Business Services (2025). Rental Reforms Overview. 🔗

Government of South Australia, Consumer and Business Services (2025). Terminating a Tenancy (PDF, updated 1 September 2025). 🔗

Government of South Australia, Consumer and Business Services (2025). Evidence Requirements for Termination (PDF, updated 1 September 2025). 🔗

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Sam Willy

I’m Sam Willy, one of the bright minds behind BritWealth.com, where I share insights, stories, and fun ideas about a wide range of topics—finance included, but not limited to it! My journey into the world of writing began with a simple hobby: sharing the things that fascinated me. From quirky facts to deeper dives into personal development, I’ve always been curious about the world around me and love passing that knowledge on.
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