(1) The
Registrar-General must, if he or she is—
(a) in
the case of an application to cancel a plan—satisfied that the
application conforms with the requirements of this Act; or
(b) in
the case of an order by the ERD Court for cancellation of a
plan—satisfied that all terms of the order and the requirements of this
Act that are to be complied with before the plan is cancelled have been
complied with,
cancel the community plan by making an endorsement to that effect on the plan
and making a note of the cancellation in the Register Book on every
certificate affected by the cancellation.
(2) On cancellation of
a community plan—
(a) the
land formerly comprised in the community parcel vests in fee simple in the
owners of the former community and development lots (if any) as tenants in
common in proportions fixed by reference to the lot entitlements of their
respective lots;
(b) a
lease over a lot or the common property is extinguished;
(c) all
internal easements are extinguished;
(d) an
easement over a lot or the common property where the dominant land is outside
the community parcel (or where there is no dominant land) is unaffected;
(e) an
easement that was appurtenant to part, but not the whole, of the
community parcel will be appurtenant to the whole of the land formerly
comprised in the community parcel if the owner of the servient land and all
persons who hold a registered encumbrance over the servient land (other than
an easement that will not be affected) consent to the cancellation of the
plan;
(f) the
community corporation is dissolved;
(g) the
liabilities of the former community corporation attach directly to the owners
of the former community lots jointly and severally (but they will be entitled
to contribution amongst each other in proportion to the lot entitlements of
the former community lots);
(h)
subject to any order of the ERD Court, the assets of the former
community corporation will be divided between the owners of the former
community lots in proportion to the lot entitlements of the former
community lots.
(3) For the purposes
of subsection (2)(a) the lot entitlements will be—
(a)
where the plan to be cancelled included a development lot—those set out
in the schedule lodged with the application for cancellation or for noting the
Court's order; or
(b)
where the plan did not include a development lot—those set out in the
schedule annexed to the plan.
(4) For the purposes
of subsection (2)(g) and (h) the lot entitlements will be those set out
in the schedule annexed to the plan.
(5) The estate vested
in the owner of a former lot under subsection (2)(a) will be subject
to—
(a) an
easement (other than an internal easement) over any of the former lots or
common property; and
(b) any
encumbrance (other than a lease) that was, immediately prior to the
cancellation of the community plan, entered on the certificate of his or her
lot.
(6) If when a
strata plan was deposited in the Lands Titles Registration Office an easement
was partially extinguished so as not to pass through a strata lot created by
the plan, the easement will be reinstated on cancellation of the plan if a
request for reinstatement is made to the Registrar-General by the registered
proprietors of the servient land and the dominant land (if any).
(7) On cancellation of
a primary plan, the primary parcel becomes an allotment for the purposes of
Part 19AB of the Real Property Act 1886 but if that land was comprised
of two or more allotments before division under this Act those allotments are
not revived.
(8) The cancellation
of a plan of community division revokes the by-laws of the community scheme
and discharges the development contract or contracts (if any) included in the
scheme.
(9) For the purposes
of subsection (2), the owner of a former lot is the person who was the
owner of the lot immediately before the cancellation of the plan.
(10) In this
section—
"internal easement" means an easement where both the dominant and servient
land comprised the whole or part of a lot or the common property within the
community parcel.