South Australian Current Acts

COMMUNITY TITLES ACT 1996 - SECT 49

49—Enforcement of development contract

        (1)         A development contract will be taken to be a contract made by the following persons:

            (a)         the developer; and

            (b)         if the contract relates to a development lot or a community lot—each subsequent owner of the lot to the extent that it relates to that lot; and

            (c)         the community corporation; and

            (d)         the owners and occupiers of the community lots; and

            (e)         the owner of the other development lot or lots (if any); and

            (f)         if the plan to which the contract relates has been amalgamated with another plan under Part 7 Division 2—the community corporation created on deposit of the amalgamated plan and the owners and occupiers of the community lots shown on that plan; and

            (g)         if the scheme is a primary scheme and a primary lot is divided by a secondary plan—

                  (i)         the secondary corporation; and

                  (ii)         the owners and occupiers of the secondary lots; and

                  (iii)         the owner of a development lot (if any) in the secondary scheme; and

                  (iv)         if a secondary lot created by the plan is divided by a tertiary plan—the tertiary corporation, the owners and occupiers of the tertiary lots and the owner of a development lot (if any) in the tertiary scheme; and

            (h)         if the scheme is a secondary scheme and a secondary lot is divided by a tertiary plan—

                  (i)         the tertiary corporation; and

                  (ii)         the owners and occupiers of the tertiary lots; and

                  (iii)         the owner of a development lot (if any) in the tertiary scheme.

        (2)         A community corporation or an owner or occupier of a lot who is, by virtue of subsection (1), a party to a development contract is entitled to take proceedings for its enforcement (including damages for breach of the contract) in the Magistrates Court against—

            (a)         the developer; and

            (b)         if the contract is for the development of a development lot or a community lot—the subsequent owner or owners (if any) of the lot,

even though no obligations attach to the corporation, owner and occupier under the contract.

        (2a)         The Magistrates Court may, on the application of a party to proceedings under subsection (2), transfer the proceedings to the District Court if satisfied that it is appropriate to do so because of the complexity or significance of the matter.

        (2b)         A court may, on its own initiative or on an application by a party to the proceedings—

            (a)         transfer an application under this section to the Supreme Court on the ground that the application raises a matter of general importance; or

            (b)         state a question of law for the opinion of the Supreme Court.

        (3)         Despite any other provision of this section, a person who is the owner of a development lot or a community lot by virtue of being a mortgagee in possession of the lot is not bound by a development contract relating to the lot unless he or she—

            (a)         becomes the registered proprietor of the lot on foreclosure; or

            (b)         remains in possession of the lot for a period of 12 months and, in that event, he or she will be bound by the contract from the end of that period.