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Outline of Required Childcare Business Settlement Licenses


As settlement draws nearer, did you know that as a purchaser, it is important for you to have all your “ducks” aligned? And that includes organising the different licenses which are required to legally own and operate a child care centre in NSW.Whether it’s a Freehold, Leasehold or Passive Investment settlement, many of the licenses which you require actually have to be finalised and granted to you before the settlement period has ended.

But, where do you begin?

Well, after years of helping Centre purchasers – just like yourselves – I’ve put together a brief outline of what you will be requiring.

Simply follow the prompts below.  It’s that simple!

Freehold Agreement

A freehold child care centre is where you acquire legal ownership of the property.  If there is a lease in place at the time of the purchase, you become the landlord and the owner of the business becomes your tenant.  If, however, there is no lease in place and you purchase both the freehold and the business, you will need to organise the following licences along with the Contract for Sale:

  • Transfer of licence
  • Provider approval licence
  • Copy of front page of contract as evidence of ownership of land

Leasehold Agreement

Leasehold child care centres are bound or held by a lease or rental agreement. When purchasing a leasehold child care centre, as the prospective buyer you are purchasing the lease only and not the actual property.  So you will need to organise the following licenses along with your Contract of Sale:

  • Transfer of licence
  • Provider approval license
  • Copy of the first page of lease or similar evidence that you leasing agreement between you and the landlord

Passive Investor

Passive investors purchase a child care centre with security in mind – typically not actively attempting to profit from short-term price fluctuations – which short-term investors do. Therefore, as a Passive investor, you are relying on the long term that the investment will be profitable and should consider:

  • If your buying as a passive investor as a DA site you will need a final occupation certificate before your tenant takes occupation

Still not sure? That’s ok! We at Childcare Concepts are always here to help both our current and prospective Centre owners through this exciting and busy time.  So feel free to contact us and we can guide you in the right direction.

~ Amber

If you found this blog useful you might also like:

Why it is Important to Know The True Value of Your Investment?

3 Steps to Get Your Childcare Centre Sale Ready!

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