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This is a Bill, not an Act. For current law, see the Acts databases.
New South Wales Strata Schemes Development Bill 2015 Explanatory note This explanatory note relates to this Bill as introduced into Parliament. This Bill is cognate with the Strata Schemes Management Bill 2015. Overview of Bill The object of this Bill is to provide for matters relating to freehold strata schemes and leasehold strata schemes that are currently provided for under the Strata Schemes (Freehold Development) Act 1973 and the Strata Schemes (Leasehold Development) Act 1986. The main objects of the proposed Act are stated in clause 3 as being to provide for: (a) the subdivision of land, including buildings, into cubic spaces to create freehold strata schemes and leasehold strata schemes, and (b) the way in which lots and common property in strata schemes may be dealt with, and (c) the variation, termination and renewal of strata schemes. The Bill generally re-enacts, with changes, the Strata Schemes (Freehold Development) Act 1973 and the Strata Schemes (Leasehold Development) Act 1986. The Bill also provides for a process to facilitate the renewal of particular freehold strata schemes by way of a collective sale or a redevelopment of the schemes. Outline of provisions Part 1 Preliminary Division 1 Introduction Clause 1 sets out the name (also called the short title) of the proposed Act. b2013-124.d25 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 2 provides for the commencement of the proposed Act on a day or days to be appointed by proclamation. Clause 3 states the main objects of the proposed Act as mentioned in the overview. Division 2 Interpretation Clause 4 defines certain words and expressions used in the proposed Act. Clause 5 provides that land is contiguous to other land even if it is divided by, or separated from the other land by, a natural feature or other specified things. Clause 6 provides for how the boundaries of a lot shown on a floor plan are determined for the purposes of the proposed Act. Clause 7 defines subdivision of a lot or common property for the purposes of the proposed Act. Clause 8 provides for how the proposed Act relates to the Real Property Act 1900, including that the proposed Act is to be read and interpreted with the Real Property Act 1900 as if it formed part of that Act. Part 2 Creation of lots and common property in strata schemes Division 1 Strata plans Clause 9 provides that specified land may be subdivided into lots, or lots and common property, by the registration of a plan as a strata plan. This clause further provides that land subject to a lease or leases may be subdivided for the purpose of creating a leasehold strata scheme, and that a development lot cannot be subdivided under the clause. Clause 10 specifies general requirements for a plan intended to be registered as a strata plan, including the requirements of an administration sheet that must be included with the plan. This clause further provides that the Registrar-General may refuse to register a proposed strata plan if the Registrar-General considers that the boundaries of the land over which the plan is to be registered are not sufficiently defined under Division 3 of Part 23 of the Conveyancing Act 1919. Clause 11 provides that the Registrar-General must not register a proposed strata plan for a leasehold strata scheme unless specified requirements for separate leases relating to the lots and common property in the proposed strata scheme have been met. This clause further provides that if a plan lodged for registration as a strata plan for a leasehold strata scheme is required to be accompanied by a lease or leases to be registered under the Real Property Act 1900, the plan is taken to have been registered only when the lease or leases are registered. Clause 12 provides for matters in relation to leases for a proposed leasehold strata scheme, including the determination of particular leases of land in the proposed scheme. Division 2 Strata plans of subdivision and consolidation Clause 13 provides that a lot (other than a development lot) or particular common property may be subdivided by the registration of a plan as a strata plan of subdivision. This clause specifies general requirements for a plan intended to be registered as a strata plan of subdivision, including the requirements of an administration sheet that must be included with the plan. This clause also specifies restrictions on the registration of a strata plan of subdivision under the clause if land comprised in the plan is held by the original owner of the strata scheme, and provides that particular by-laws affecting common property that is intended to be subdivided must be repealed or amended. Clause 14 provides that a development lot may be subdivided by the registration of a plan as a strata plan of subdivision. This clause specifies general requirements for a plan intended to be registered as a strata plan of subdivision, including the requirements of an administration sheet that must be included with the plan. Page 2 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 15 provides that 2 or more lots may be consolidated into one lot by a strata plan of consolidation. This clause specifies general requirements for a plan intended to be registered as a strata plan of consolidation, including the requirements of an administration sheet that must be included with the plan. This clause also provides that any common property in a wall, floor or ceiling that is a boundary between any lots being consolidated vests in the owner of the consolidated lot on registration of the plan if the owners corporation of the strata scheme has, by special resolution, agreed to the consolidation and has signed the plan. Clause 16 provides for matters in relation to leases on the registration of a strata plan of subdivision or consolidation for a leasehold strata scheme, including the determination of particular leases. This clause further provides if a plan lodged for registration as a strata plan of subdivision for a leasehold strata scheme is required to be accompanied by a lease or leases to be registered under the Real Property Act 1900, the plan is taken to have been registered only when the lease or leases are registered. Division 3 Notices of conversion Clause 17 provides that one or more lots may be converted into common property by the registration of a notice as a notice of conversion, if the owners corporation of the strata scheme has, by special resolution, authorised the proposed conversion. This clause specifies requirements for a notice intended to be registered as a notice of conversion, and specifies restrictions on its registration, including a restriction if part or all of the land to be converted is held by the original owner. Clause 18 provides for the determination of a lease of a lot converted into common property on registration of a notice of conversion for a leasehold strata scheme, and for the vesting of the lot in the owners corporation as lessee. Division 4 Building alteration plans Clause 19 provides that, if a building of a strata scheme is altered in specified ways affecting a lot in the scheme, the owner of the lot must lodge a plan for registration as a building alteration plan relating to the lot. This clause also specifies requirements for a plan intended to be registered as a building alteration plan, including the requirements of an administration sheet that must be included with the plan. Clause 20 provides that, on registration of a building alteration plan showing an encroachment onto a public place, the Registrar-General is to give a copy of the plan to the relevant local council. Division 5 Additional requirements for registration of plans and notices Clause 21 provides that the Registrar-General may refuse to register a proposed strata plan of subdivision, strata plan of consolidation, building alteration plan or notice of conversion unless it is accompanied by a certificate of title comprising the common property in the relevant strata scheme. Clause 22 specifies who is required to sign, and who the Registrar-General may require to sign, plans lodged for registration as a strata plan, strata plan of subdivision, strata plan of consolidation or building alteration plan. This clause also provides that the Registrar-General may waive the requirement for a person to sign a plan. Division 6 Common property Clause 23 provides that common property may be dealt with only in accordance with the proposed Act and the Strata Schemes Management Act 2015. Clause 24 provides for matters relating to common property in a strata scheme, including its vesting in the owners corporation, on its creation by registration of a strata plan, strata plan of subdivision or notice of conversion, and that the Registrar-General is to create a folio for the estate or interest of the owners corporation in the common property. This clause also provides that the creation of the folio does not affect a right or remedy exercisable otherwise than in relation to Page 3 Strata Schemes Development Bill 2015 [NSW] Explanatory note common property by specified persons even if they signed or consented to the registration of the plan or signed the notice. Clause 25 specifies the circumstances in which an owners corporation of any strata scheme may accept a lease or sublease, or a transfer of a lease or sublease, of land (an accepted lease or sublease) for the purpose of creating or creating additional common property in the strata scheme, and specifies the circumstances in which an owners corporation of a freehold strata scheme may accept a transfer of land for the purpose of creating or creating additional common property in the strata scheme. This clause further provides that, if the strata scheme forms part of a community scheme, the Registrar-General may refuse to register a transfer of land for the purpose of creating or creating additional common property unless the community scheme is appropriately amended by any necessary dealings registered under the Community Land Development Act 1989. Clause 26 provides that a dealing evidencing a transaction to which clause 25 applies must be lodged for registration under the Real Property Act 1900. This clause also specifies the things that must accompany the dealing, and provides that a dealing for the transfer of land may be registered only if a plan showing the transferred land and the original parcel as a single lot is registered under the Conveyancing Act 1919. This clause further provides for the effect of registration of the dealing. Clause 27 provides that the owners corporation may, by special resolution and with the agreement of the lessor or sublessor, surrender an accepted lease or sublease. Clause 28 provides that an owners corporation holds the common property in the strata scheme as agent for the owners as tenants in common in shares proportional to the unit entitlement of the owners' lots. This clause also provides that an owner's interest in common property cannot be severed from, or dealt with separately from, the owner's lot, and that a dealing or caveat relating to an owner's lot also affects the owner's interest in the common property. Clause 29 provides that the Registrar-General must create a folio of the Register in relation to a strata scheme that does not contain common property, and specifies matters to be recorded in the folio. Clause 30 provides that a reference in the proposed Act to a folio includes a reference to a specified folio during any period in which it does not contain common property, and a reference to a certificate of title includes a reference to a certificate of title in relation to any such folio. This clause further provides for the application of provisions of the Real Property Act 1900 in relation to the folio or certificate of title. Clause 31 provides that, in a folio for common property, it is sufficient that the land comprised in the common property is described as the common property in a designated strata plan without defining its area or dimensions. This clause further provides that a folio for specified common property is taken to certify title to the common property. This clause also specifies matters the Registrar-General must record in a folio for common property. Clause 32 specifies restrictions on recording matters about easements, restrictions on the use of land or positive covenants relating to common property in a strata scheme in the folio for a lot in the scheme, and provides that the Registrar-General must make the recordings in the folio for the common property in the scheme. This clause further provides that any such easement, restriction on use or positive covenant affects a lot in a strata scheme to the extent that it can affect the lot, and as if it were recorded in the folio for the lot. This clause also provides that the Registrar-General must not record a mortgage, charge, covenant charge or writ in the folio for the common property in a strata scheme. Clause 33 provides for how an owners corporation of a freehold strata scheme or a leasehold strata scheme may deal with specified common property in the scheme. This clause also provides that an owners corporation of any strata scheme may, by special resolution, accept a surrender of a lease or sublease of common property granted under the clause or re-enter under the lease or sublease. This clause also specifies circumstances in which the Registrar-General may refuse to register a dealing that is the transfer of common property in a community scheme. This clause further provides that, if the strata scheme forms part of a community scheme, the Registrar-General may refuse to register a transfer of common property unless the community Page 4 Strata Schemes Development Bill 2015 [NSW] Explanatory note scheme is appropriately amended by any necessary dealings registered under the Community Land Development Act 1989. Clause 34 provides for how an owners corporation of a strata scheme may execute or accept a dealing creating, releasing or varying an easement, or a restriction on the use of land or a positive covenant relating to common property in the scheme. Clause 35 provides that an owners corporation of a strata scheme may, by special resolution, dedicate common property in the scheme as a public road, public reserve or drainage reserve by registration of a plan under Division 3 of Part 23 of the Conveyancing Act 1919. This clause further provides for restrictions on such dedications, and specifies circumstances in which the Registrar-General may refuse to register a plan if the strata scheme forms part of a community scheme. Clause 36 specifies restrictions on the execution and registration of dealings for the purposes of the proposed Division. This clause further provides that a certificate under the seal of an owners corporation (and given in relation to a dealing for registration under the Real Property Act 1900 or the Conveyancing Act 1919) is conclusive evidence of the facts stated in the certificate in favour of the Registrar-General and any person taking under the dealing or benefiting by its registration. Clause 37 provides that a dealing executed by an owners corporation for the purposes of the proposed Division is as valid and effective as it would be if it were also executed by the owners of all the lots in the strata scheme. This clause further provides that a receipt of the owners corporation for an amount payable to it in relation to a dealing is a sufficient discharge for the payment and exonerates each person paying the amount from any responsibility for its application. Division 7 Miscellaneous Clause 38 provides that section 88B of the Conveyancing Act 1919 applies to a strata plan, strata plan of subdivision and strata plan of consolidation in the same way as it applies to a plan referred to in that section relating to land under the Real Property Act 1900. This clause further provides that specified provisions of the Conveyancing Act 1919 apply in relation to plans lodged for registration as a strata plan, strata plan of subdivision, strata plan of consolidation or building alteration plan in the same way the specified provisions apply to plans referred to in the provisions. Clause 39 specifies how the proposed Act applies to an encroachment shown on a proposed strata plan, strata plan of subdivision or building alteration plan. This clause further provides that it does not apply to a provision of the proposed Act relating to ownership and certification of title. Clause 40 provides that proposed by-laws for a strata scheme have no effect until the strata plan and any proposed by-laws that are required to accompany it are registered, and that registration does not operate to give effect to by-laws that have not been lawfully made. Part 3 Provisions relating to leases in leasehold strata schemes Division 1 Leases of lots and common property Clause 41 provides that the provisions of the Conveyancing Act 1919 relating to leases of land apply in relation to a lease of a lot or common property in a leasehold strata scheme, other than to the extent the provisions are inconsistent with the proposed Act or the regulations made under the proposed Act. This clause further provides that the lessor of a leasehold strata scheme may be the owner of any lot in the scheme. Clause 42 provides that, except as expressly provided by Division 6 of Part 2 of the proposed Act, a provision of a lease of a lot or common property in a leasehold strata scheme purporting to require the consent of the lessor of the scheme to any dealing with the lease is void. Clause 43 provides that, for the purposes of the proposed Act, a lessor of a leasehold strata scheme who is entitled to immediate possession of a lot in the scheme because of the determination of a lease is taken to be the owner of the lot. This clause further provides that the Page 5 Strata Schemes Development Bill 2015 [NSW] Explanatory note section does not confer or impose on the lessor certain specified rights or obligations of former owners. Clause 44 provides that the lessor of a leasehold strata scheme may grant further leases of lots or common property in the scheme, and provides for the circumstances in which the lessor must grant further leases of lots in the scheme or of common property in the scheme. This clause also specifies particular requirements of further leases granted under the clause, and provides that a right to a further lease of a lot or common property may not be exercised otherwise than in accordance with the clause. Clause 45 specifies the circumstances in which the lessor of a leasehold strata scheme may refuse to grant further leases of lots or common property in the scheme. Division 2 Re-entry or forfeiture of leases of lots Clause 46 restricts the right of re-entry or forfeiture under a lease of a lot in a leasehold strata scheme for breach of a covenant, condition or agreement in the lease if the lease is subject to a registered mortgage, charge or covenant charge. This clause provides that the right may not be exercised unless the lessor of the leasehold strata scheme has served on the mortgagee, chargee or covenant chargee a copy of the notice served on the owner under section 129 of the Conveyancing Act 1919 in relation to the breach. Clause 47 provides that if a lessor has brought legal proceedings to enforce a right of re-entry or forfeiture under a lease of a lot in a leasehold strata scheme, the Supreme Court may, on application of a mortgagee, chargee or covenant chargee of the lot, make an order staying the proceedings and vesting the lease of the lot in a mortgagee, chargee or covenant chargee on conditions the court considers just and equitable. Division 3 Conversion of leasehold strata schemes to freehold strata schemes Clause 48 provides that in specified circumstances the owners corporation of a leasehold strata scheme may, by special resolution, authorise the conversion of the scheme into a freehold strata scheme, and sets out procedures for the conversion. This clause further provides that in specified circumstances the owners corporation or the lessor may acquire the reversion in, or the lease of, a lot in the scheme. This clause also provides that the lessor must give the Registrar-General notice, in the approved form, about the conversion of a leasehold strata scheme. Clause 49 provides that, on receiving a notice about the conversion of a leasehold strata scheme, and an application in the approved form, before termination of the leasehold strata scheme, the Registrar-General may record matters in the Register the Registrar-General considers appropriate to effect a merger of the leasehold and reversionary estates. This clause also specifies matters that take effect on the making of the record by the Registrar-General. Part 4 Strata certificates Division 1 Preliminary Clause 50 defines certain words and expressions used in proposed Part 4. Clause 51 provides that, subject to the proposed Act, a provision of the Conveyancing Act 1919, the Environmental Planning and Assessment Act 1979 or another Act relating to the way land is divided does not apply to a subdivision effected under proposed Part 2. This clause does not affect a requirement to obtain planning approval for a subdivision. Clause 52 specifies the circumstances in which a relevant planning approval is in force, for the purposes of the proposed Act, for a proposed strata plan, strata plan of subdivision or notice of conversion. Clause 53 provides that an application for a strata certificate can be made only by an owner of land to which the application relates or another person with the owner's consent. Page 6 Strata Schemes Development Bill 2015 [NSW] Explanatory note Division 2 Issue of strata certificates by local councils Clause 54 provides that a local council must, subject to proposed Part 4 and on application made to the council, issue a strata certificate in relation to a proposed strata plan, or a proposed strata plan of subdivision of a development lot, if specified requirements are met. Clause 55 provides that a local council may, on application made to the council, issue a strata certificate in relation to a proposed strata plan of subdivision (other than a subdivision of a development lot) after considering and being satisfied about specified matters. This clause further provides for the giving of a notice to the owners corporation about a proposed subdivision that does not subdivide or create common property in order to obtain the views of the owners corporation on the proposed subdivision. Clause 56 provides that a local council may, on application made to the council, issue a strata certificate in relation to a proposed notice of conversion on being satisfied about specified matters. Clause 57 specifies restrictions that apply to the issue of a strata certificate by a local council despite any other provision of proposed Division 2. Division 3 Issue of strata certificates by accredited certifiers Clause 58 provides that an accredited certifier must, on application made to the certifier, issue a strata certificate in relation to a proposed strata plan, or a proposed strata plan of subdivision of a development lot, if specified requirements are met. Clause 59 provides that an accredited certifier must, on application made to the certifier, issue a strata certificate in relation to a proposed strata plan of subdivision (other than a subdivision of a development lot) if specified requirements are met. Clause 60 provides that an accredited certifier must, on application made to the certifier, issue a strata certificate in relation to a notice of conversion if specified requirements are met. Clause 61 specifies restrictions that apply to the issue of a strata certificate by an accredited certifier despite any other provision of proposed Division 3. Division 4 Strata certificates relating to encroachments onto public places, and to utility lots Clause 62 provides that a local council may, unless specified requirements are met, refuse to issue a strata certificate in relation to a strata plan or strata plan of subdivision if a building to which the plan relates encroaches on a public place. This clause also provides that an accredited certifier must, unless specified requirements are met, refuse to issue any such strata certificate. Clause 63 provides that a local council may impose a condition (a restrictive use condition) on a strata certificate restricting the use of a utility lot if the lot would be created on registration of a plan for which the certificate is sought. This clause further provides that an accredited certifier must note, on a strata certificate issued by the certifier, a restriction on the use of a utility lot contained in a relevant planning approval. This clause also provides that section 88 of the Conveyancing Act 1919 does not apply to a restriction referred to in the clause. Clause 64 provides that a local council may, by instrument under the Real Property Act 1900, release a utility lot from a restrictive use condition imposed by the council on the use of the utility lot. Division 5 Notice of decisions and appeals Clause 65 provides that a local council or accredited certifier must give notice, stating specified matters, of the council's or certifier's decision on an application for a strata certificate. Clause 66 provides that the applicant for an application for a strata certificate made to a local council may appeal to the Land and Environment Court against the council's decision to refuse the application or to issue the certificate subject to a restrictive use condition. This clause further provides for when a local council's decision on an application is taken to have been made, and for the period within which an appeal must be made. This clause also provides that the court's Page 7 Strata Schemes Development Bill 2015 [NSW] Explanatory note decision on appeal is taken to be the final decision of the local council and is to be given effect as if it were the decision of the local council. Division 6 Application of Building Professionals Act 2005 Clause 67 provides that, for the purposes of the proposed Act, an accredited certifier is the holder of an accreditation as an accredited certifier for the purposes of the Act. This clause also provides that specified provisions of the Building Professionals Act 2005 and the regulations made under that Act relating generally to accredited certifiers apply in relation to the accreditation of accredited certifiers for the purposes of the proposed Act, those accredited certifiers and the exercise of their functions under the proposed Act. Clause 68 provides that specified provisions of the Building Professionals Act 2005 and the regulations made under that Act relating to a requirement to have insurance apply in relation to accredited certifiers exercising functions under the proposed Act in the same way as the provisions apply to accredited certifiers exercising the functions of a certifying authority within the meaning of the Environmental Planning and Assessment Act 1979. Division 7 Miscellaneous Clause 69 provides that a person who exercises functions under the proposed Act or another Act in reliance on a strata certificate is entitled to assume specified matters, and is not liable for loss or damage arising from a matter in relation to which the certificate was issued. This clause further provides that it does not apply to an accredited certifier in relation to a strata certificate issued by the accredited certifier. Clause 70 specifies matters that the regulations may make provision for or with respect to in relation to proposed Part 4. Part 5 Staged development Division 1 Preliminary Clause 71 specifies the purpose and scope of proposed Part 5, in particular that its purpose is to facilitate the development in stages of a parcel subject to a strata scheme. Clause 72 defines certain words and expressions used in proposed Part 5. Clause 73 provides that the proposed development in stages of a parcel subject to a strata scheme consists of the progressive improvement of the parcel by constructing buildings or carrying out works on development lots, and the subsequent subdivision of development lots and consequential adjustment of the unit entitlement of lots in the strata scheme. This clause further provides that the proposed development will be carried out subject to a strata development contract that describes specified matters. Clause 74 defines development concern for the purpose of proposed Part 5. Division 2 Restriction on granting planning approval Clause 75 provides that a planning authority must not grant a planning approval for the subdivision of land by a strata plan for the purposes of the development in stages of a parcel under proposed Part 5 unless the proposed plan includes a development lot and a development contract accompanies the application for the planning approval. This clause further provides that a planning authority must certify specified matters if it grants any such planning approval, and a planning approval granted in contravention of the clause is invalid. Division 3 Strata development contracts and registration of contracts and amendments Clause 76 provides that a strata development contract must be in the approved form, and specifies matters that must be included in a strata development contract. This clause further provides that a Page 8 Strata Schemes Development Bill 2015 [NSW] Explanatory note strata development contract cannot provide for the subdivision of common property in a strata scheme without the consent, by special resolution, of the owners corporation. Clause 77 provides that a concept plan for a strata development contract must separately illustrate the sites proposed for, and the nature of, the buildings and works that would result from the carrying out of permitted development and warranted development under the contract. Clause 78 provides that a strata development contract may apportion the liability for expenses relating to the use or maintenance of common property in a strata scheme differently from the way the expenses are apportioned by the schedule of unit entitlement for the scheme. This clause further provides that, despite the schedule of unit entitlement, the apportionment has effect until the development scheme is concluded. Clause 79 specifies requirements relating to the signing and lodging of a strata development contract or an amendment of any such contract. This clause further provides that the same person may be more than one of the parties to a strata development contract. Clause 80 provides that the Registrar-General may register a strata development contract or an amendment of any such contract by recording the contract or amendment in the Register. This clause also specifies requirements for the registration of the contract or amendment. Clause 81 provides that a strata development contract has effect as an agreement under seal containing the covenants specified in Schedule 3 entered into by the owners corporation and other specified types of persons, and that the contract ceases to have effect in relation to a specified person (other than in relation to obligations incurred or rights that accrued before the contract ceases) when the person ceases to be the specified type of person. This clause further provides that a lessee entitled to immediate possession of a development lot (and a mortgagee, chargee and covenant chargee in possession of a development lot) is taken to be the developer for the purposes of the proposed Act, the regulations and the strata development contract instead of the person who would otherwise be the developer. This clause also provides that a strata development contract does not permit development to be carried out in contravention of any law, that a provision of another contract or instrument is void if it excludes, modifies or restricts a strata development contract, and that a covenant under a strata development contract does not merge on the transfer of a lot. This clause also excludes the application of the Strata Schemes Management Act 2015 to matters arising under a strata development contract. Clause 82 provides that a strata development contract may confer on the developer an exclusive or any lesser right to occupy common property, and that a developer is entitled to use common property or the relevant development lot to the extent necessary to carry out the development or, in relation to common property specified in the contract, to the extent conferred by the contract. This clause further provides that the right to occupy or use the common property or development lot must be exercised in a way that does not cause unreasonable inconvenience to an occupier of any lot, and that the right may be exercised (and the provisions of the contract relating to the maintenance or upkeep of common property have effect) despite other provisions of the proposed Act, the by-laws or an order under section 131 of the Strata Schemes Management Act 2015. Clause 83 provides that land may be added to a parcel containing a development lot by registration of a plan as a strata plan of subdivision. This clause also specifies requirements for the registration of any such plan and provides that on registration of the plan the added land becomes common property, a further development lot or an addition to an existing development lot (or a combination of these) as provided by the strata development contract. Division 4 Amendment of strata development contracts Clause 84 provides that a strata development contract may be amended by the developer and has effect only if the specified requirements relating to the type of amendment are met. This clause further provides that a planning authority that approves an amendment must give the applicant for the approval a copy of the instruments, plans and drawings that describe and illustrate the amendment and a specified certificate relating to the approved amendment. Clause 85 provides that an applicant may appeal to the Land and Environment Court against a planning authority's decision to refuse to approve an amendment of a strata development contract, Page 9 Strata Schemes Development Bill 2015 [NSW] Explanatory note and that the planning authority must give the applicant notice of a decision to refuse. This clause further provides for the period within which an appeal must be made and that the decision of the court on appeal is taken to be the final decision of the planning authority and is to be given effect as if it were the decision of the planning authority. Clause 86 provides that a proposed amendment of a strata development contract need not be supported by a resolution of an owners corporation if the amendment is approved by the Land and Environment Court. This clause further provides that the court must be satisfied of specified matters before approving the amendment, that the developer must serve an application for the amendment on specified persons and that a person entitled to be served with the application is entitled to appear and be heard on the hearing of the application. Division 5 Provisions relating to development concerns Clause 87 provides that the vote of a developer permitted to carry out development included in a strata development contract is sufficient to pass or defeat a motion in the notice for a meeting of the owners corporation or its strata committee if the passing or defeat of the motion would have the effect of making a decision about a development concern. This clause further provides that it is not necessary for a decision about a development concern to be supported by a special or unanimous resolution despite any other provision of the proposed Act or the Strata Schemes Management Act 2015, and that a dealing, plan or other instrument may be executed by the owners corporation (or a developer on behalf of the owners corporation) to give effect to the decision. This clause also provides that the regulations may impose requirements for the execution of any such dealings, plans or other instruments. Clause 88 provides that a motion the passing or defeat of which would have the effect of making a decision about a development concern must be identified as relating to a development concern in the notice of the relevant meeting and moved separately from any other kind of motion. This clause further specifies requirements for convening general meetings of owners corporations for the purpose of making decisions about development concerns, and for the constitution of a sufficient quorum for a meeting in relation to business dealing with a development concern. This clause also provides that, for the purpose only of allowing development permitted by a strata development contract to be carried out, a developer (or if the developer is a corporation, its company nominee) may exercise specified functions prescribed by the regulations. Division 6 Conclusion of development schemes Clause 89 provides that a development scheme to which a strata development contract relates is concluded on the happening of specified events, and also specifies requirements for the signing and lodging of a notice relating to the conclusion of the development scheme to which a strata development contract relates. Clause 90 provides that, within 2 years after the conclusion of a development scheme, the owners corporation may lodge a revised schedule of unit entitlement for the strata scheme if it considers the schedule for the scheme does not apportion the unit entitlements so as to reflect the market value of the lots in the scheme. This clause also specifies requirements of a revised schedule of unit entitlement. Clause 91 provides that the Registrar-General must record the conclusion of a development scheme in the folio of the owners corporation and the common property in the strata scheme, and must record a revised schedule of unit entitlement (if any) as the schedule of unit entitlement in substitution for the existing schedule of unit entitlement for the scheme. Clause 92 provides that the Land and Environment Court may, by order, defer or fix the time for conclusion of a development scheme and may vary any such order on the application of a person entitled to apply for an order. This clause further provides that the applicant for the order must serve notice of an application for an order on specified persons, and that each specified person may appear and be heard on the hearing of the application. This clause also specifies matters that may be included in an order. Page 10 Strata Schemes Development Bill 2015 [NSW] Explanatory note Division 7 Applications for assistance Clause 93 provides that an owners corporation or an owner of a lot (other than a developer) may apply to the Secretary of the Department of Finance, Services and Innovation (the Secretary) for assistance to bring or defend proceedings before the Land and Environment Court relating to specified matters. This clause further provides that the Secretary may require an applicant to give the Secretary further information about an application and may refuse to proceed with the application until the information is given. Clause 94 provides that the Secretary may decide to investigate an application for assistance or to discontinue an investigation, and specifies matters the Secretary must have regard to in making the decision. This clause also specifies obligations imposed on the Secretary in relation to the Secretary's decision about an application for assistance. Clause 95 applies sections 20-22 of the Fair Trading Act 1987 to an investigation of an application for assistance. Clause 96 applies Division 2 of Part 2 of the Fair Trading Act 1987 (other than specified provisions) to an application for assistance. This clause also provides that the Secretary may, with the consent of the Minister administering the Fair Trading Act 1987, seek an interim restraining order under the Environmental Planning and Assessment Act 1979 in relation to the subject-matter of an application, and specifies particular matters relating to the order. Clause 97 provides that an owners corporation may, if authorised by resolution, make an application for assistance, or bring specified proceedings relating to a strata development contract, an amendment of any such contract, a planning approval granted in accordance with clause 75 (1) or a modification of any such planning approval. This clause further provides that any vote cast by the developer or a mortgagee of the developer is to be disregarded in determining whether a resolution has been passed. Division 8 Miscellaneous Clause 98 specifies particular functions of the Secretary in relation to matters under proposed Part 5. Part 6 Strata management statements and easements relating to part strata parcels Division 1 Strata management statements Clause 99 provides that the Registrar-General must not register a plan as a strata plan that creates a part strata parcel unless the Registrar-General also registers a strata management statement for the building and its site or waives the requirement for a strata management statement on specified grounds. Clause 100 provides that a strata management statement must be in the approved form and that it must comply with proposed Schedule 4. This clause further provides that Schedule 4 applies to a strata management statement. Clause 101 provides that the Registrar-General may register a strata management statement, or an amendment of a strata management statement, by recording the statement or amendment in the Register. This clause further provides that the Registrar-General may refuse to register a strata management statement on specified grounds, and may register a strata management statement for a building and its site at any time a part of the building is included in a part strata parcel but is not the subject of a strata management statement. Clause 102 provides that, if a strata management statement is registered, the Registrar-General must record specified matters about the statement in the folio relating to the owners corporations of the strata scheme and the common property and in the folio for each owners corporation of a strata scheme for part of the building and for each part of the building or site that does not form part of a part strata parcel. Page 11 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 103 provides that a strata management statement may be amended only if the amendment is supported by a special resolution of the owners corporation of each strata scheme for part of the building and other specified persons, or is ordered by a court or is consequential on the revocation or modification of a planning approval. This clause further provides that an amendment must be in the approved form and has effect only if it is recorded in the folio for each owners corporation of a strata scheme for part of the building and for each part of the building or site that does not form part of a part strata parcel. Clause 104 provides that the Registrar-General may register a strata management statement or amendment only if specified requirements for lodging and signing the strata management statement or amendment are met, and may refuse to register a strata management statement or amendment unless written consents to the registration have been lodged and signed by specified persons that the Registrar-General determines. This clause further provides that the Registrar-General may waive a requirement for a signature under this clause without giving notice to any person. Clause 105 provides that a registered strata management statement has effect as an agreement under seal, containing specified covenants, entered into by specified persons. This clause further provides for the circumstances in which the agreement ceases to have effect in relation to the specified persons and that the ceasing of the agreement does not prejudice or affect obligations incurred or rights accrued while it was in force. This clause also provides that a strata management statement has no effect to the extent it is inconsistent with specified conditions and orders, or another Act or law, and that (subject to the proposed Act and the regulations) a provision of any instrument that excludes, modifies or restricts the agreement is void. In addition, this clause provides that a covenant under the agreement does not merge in the transfer of a lot. This clause does not affect a right or remedy a person may have under a strata management statement apart from a right or remedy under proposed Part 6. Division 2 Easements Clause 106 specifies the easements, and the rights under the easements, that are implied in relation to lots and common property comprising a part strata parcel on registration of a plan as a strata plan that creates the part strata parcel. This clause also provides that the Registrar-General must record the easements in the Register and that the clause applies despite section 88 of the Conveyancing Act 1919. Clause 107 provides that the rights and obligations conferred or imposed by an instrument creating specified types of easement are the rights and obligations specified in Schedule 5 other than to the extent they are varied or negatived under this clause or in the particular instrument. This clause further provides that particular terms of the easements may be varied, and how they may be varied, under the Real Property Act 1900 or by order of the Supreme Court. This clause also provides for the recording in the Register, and the effect, of an order of the Supreme Court and that the site of an easement for a specified service is not required to be identified on a strata plan. Division 3 Miscellaneous Clause 108 provides that on the registration of a plan as a strata plan that creates a part strata parcel and in relation to which the requirement for a strata management statement has been waived because a registered building management statement is in force for the building and its site, the building management statement is taken to be the registered strata management statement for the building and its site. Clause 109 provides that in a lease of a lot or common property in a strata scheme that is part of a community scheme, an agreement by the lessee to comply with the community management statement, and the precinct management statement if the community scheme is part of a precinct scheme, is implied. Clause 110 provides that if it is proposed to grant a lease of a lot or common property in a strata scheme that is part of a community scheme, the lessor must include a copy of the community Page 12 Strata Schemes Development Bill 2015 [NSW] Explanatory note management statement, and the precinct management statement if the community scheme is part of a precinct scheme, with the copy of the lease to be signed by the lessee. Part 7 Compulsory acquisition of lots and common property Clause 111 provides that proposed Part 7 does not apply to an easement or land in a strata scheme that is part of a community scheme. Clause 112 provides that, despite any other Act, a resuming authority cannot resume particular land unless the specified requirements in relation to the land are met. Clause 113 provides that the Registrar-General must not register a plan that relates to a parcel and is lodged to effect a resumption referred to in clause 112 (1), unless the notice of resumption and the plan comply with specified requirements. This clause also specifies requirements for the registration of plans intended to effect a resumption. Clause 114 states the effect of a resumption of common property and other resumed land under proposed Part 7. Clause 115 provides that a resuming authority may apply to the Supreme Court for an order in relation to the resumption of land in a parcel and exclusion of that land from a strata scheme. This clause further provides that notice of an application for an order must be served on specified persons and states who is entitled to appear and be heard on the hearing of the application. This clause also provides that the Supreme Court may, if it considers an order should not be made, direct that the application for the order be treated as an application for another specified type of order under the proposed Act. If the court makes the direction, the application for the order is taken to be an application for the other type of order. Clause 116 provides that the costs for an application for an order of the Supreme Court are payable by the resuming authority unless the Supreme Court otherwise orders. Clause 117 provides that a resuming authority does not acquire any interest in common property in a strata scheme merely because it resumes the whole or part of a lot in the scheme, if the notice of resumption states that the lot is to be excluded from the scheme. Clause 118 provides that, for the purposes of any Act relating to the payment of compensation on the resumption of land, a resumed part of a lot is severed from every other part of the lot and the beneficial interests of the owners in resumed common property is taken to be vested in the owners corporation to the exclusion of the owners for the purposes of any claim for, or the payment of, compensation. Clause 119 provides that a resumption of land to which proposed Part 7 and the Land Acquisition (Just Terms Compensation) Act 1991 apply must comply with the proposed Part and that Act, and a resumption of land to which proposed Part 7 and to which Part 12 of the Roads Act 1993 apply must comply with the proposed Part and Part 12 of that Act. This clause further provides that proposed Part 7 prevails to the extent of any inconsistency. Clause 120 provides that if a part of a parcel is resumed by a resuming authority that is not bound by the proposed Act and does not comply with proposed Part 7, the owners corporation or a person affected by the resumption may apply for a stated order under proposed Part 9 in relation to the resumption. Part 8 Particular functions of Registrar-General Clause 121 empowers the Registrar-General to register plans and other instruments for the purposes of the proposed Act, and provides for when a strata plan, strata plan of subdivision, strata plan of consolidation, building alteration plan or notice of conversion is taken to be registered. This clause also provides that any such plans or notices must not be registered unless they are lodged with all other plans or documents prescribed by the regulations. Clause 122 provides that the Registrar-General may copy specified documents and certify the copies as true copies, and that the certified copies have the same validity and effect as the original Page 13 Strata Schemes Development Bill 2015 [NSW] Explanatory note documents. This clause further provides that the Registrar-General may destroy, or cease to keep in electronic form, an original document to which a certified copy relates. Clause 123 provides that the Registrar-General may record particular unit entitlements in the folio for common property, or amend schedules of unit entitlement recorded in the folio for common property or amend revised schedules of unit entitlement, in accordance with the circumstances specified in the clause. This clause further provides that, on making a recording or amendment, the Registrar-General must give the owners corporation notice of the unit entitlements recorded. Clause 124 provides that the Registrar-General must record restrictive use conditions relating to a lot on creating a folio for the lot, and the recorded condition is an interest within the meaning of section 42 of the Real Property Act 1900. This clause further provides that the Registrar-General also must record matters about the release of a utility lot from a restrictive use condition, and the release has effect when the record is made. Clause 125 provides that the Registrar-General must not, on registering a strata plan of subdivision or a current plan in relation to a specified resumption, create a folio for a lot or make a recording in the Register in relation to a lot comprised in the strata plan of subdivision or a current plan lot in the current plan until the Registrar-General makes a recording in the Register under section 31A (3) of the Real Property Act 1900 in relation to the resumption. Clause 126 provides that on registration of particular strata plans of subdivision, or a strata plan of consolidation, the Registrar-General must cancel the folios for any former lots, create new folios for the new lots and amend the schedule of unit entitlement recorded in the folio for the common property in the strata scheme. This clause further provides that on registration of a notice of conversion of a lot into common property the Registrar-General must cancel the folio for the converted lot and amend the schedule of unit entitlement recorded in the folio for the common property in the strata scheme. Clause 127 provides that in relation to a specified resumption of a lot the Registrar-General is to make, in the folio for the resumed lot, a recording that is authorised or required to be made under section 31A (3) of the Real Property Act 1900. This clause further provides that, in relation to a resumption of a lot in a specified strata plan of subdivision, the Registrar-General must cancel the folio for the subdivided lot, create a folio for each new lot and amend the schedule of unit entitlement recorded in the folio for the common property in the strata scheme. Clause 128 provides that in relation to a resumption solely of common property the Registrar-General is to make, in the folio for the common property, a recording that is authorised or required to be made under section 31A (3) of the Real Property Act 1900. This clause further provides that, in relation to a resumption of the whole of a parcel or any part of a parcel that does not consist of common property, the Registrar-General must make the recordings in the Register, and create the folios, the Registrar-General considers necessary or appropriate to give effect to particular orders made under the proposed Act. Part 9 Variation or termination of strata schemes Division 1 Preliminary Clause 129 defines certain words and expressions used in proposed Part 9. Division 2 Variation of strata schemes Clause 130 provides that specified persons may apply to the Supreme Court (the court) for an order about the variation or substitution of a strata scheme, that notice of the application must be served in accordance with rules of court and that the applicant and persons entitled to be served may appear and be heard on the hearing of the application. Clause 131 provides that the court may make an order about the variation or substitution of a strata scheme (a variation order), that specified directions may be included in the order and that Page 14 Strata Schemes Development Bill 2015 [NSW] Explanatory note the court may change a variation order on application of a person entitled to appear and be heard on the hearing of the application for the order. Clause 132 specifies when a variation order takes effect. Clause 133 provides that the court may, on application of a person entitled to appear and be heard on the hearing of the application for a variation order or on its own initiative, direct that the application for the variation order be treated as an application for an order about the termination of a strata scheme. This clause further provides that an application the subject of the direction is taken to have been made, under the clause for the order about the termination, by a person entitled to make it, and that the applicant and any other person entitled to appear and be heard under that clause is entitled to appear and be heard on the hearing of the application. Clause 134 provides that, unless the court otherwise orders, the costs of proceedings in relation to a specified application are payable by the resuming authority. Division 3 Termination of strata schemes by order of court Clause 135 provides that specified persons may apply to the court for an order about the termination of a strata scheme, that notice of the application must be served in accordance with rules of court and that the applicant and persons entitled to be served may appear and be heard on the hearing of the application. This clause also restricts an application being made under the clause by a prescribed authority within the meaning of section 88D or 88E of the Conveyancing Act 1919. Clause 136 provides that the court may make an order about the termination of a strata scheme (a termination order), that specified directions may be included in the order and that the court may change a termination order on application of a person entitled to appear and be heard on the hearing of the application for the order. Clause 137 specifies when a termination order takes effect. Clause 138 specifies matters in relation to a termination order taking effect, including that compensation payable in relation to the value of improvements in a leasehold strata scheme is to be determined in accordance with the formula set out in Schedule 6 or as otherwise agreed between the former lessor and former owners. Clause 139 provides that a dispute about the amount of compensation payable in relation to the value of improvements in a terminated leasehold strata scheme is to be resolved by arbitration or by order of the Supreme Court, that an application for an order of the Supreme Court may be made by any party to the dispute, that notice of the application must be served in accordance with rules of court and that all applications in relation to the same leasehold strata scheme must, as far as practicable, be heard together. Clause 140 provides that the court may, on application of a person entitled to appear and be heard on the hearing of the application for a termination order or on its own initiative, direct that the application for the termination order be treated as an application for a variation order. This clause further provides that an application the subject of the direction is taken to have been made under the clause for making an application for a variation order by a person entitled to make it, and that the applicant and any other person entitled to appear and be heard under that clause is entitled to appear and be heard on the hearing of the application. Clause 141 provides that, unless the court otherwise orders, the costs of proceedings in relation to specified applications are payable by the resuming authority. Division 4 Termination of strata schemes by Registrar-General Clause 142 provides that a person may apply to the Registrar-General for termination of a strata scheme that does not relate to a parcel the subject of a strata development contract. This clause further provides that the applicant must publish details about the proposed termination and that the application must be signed by specified persons (unless the Registrar-General otherwise agrees), and be accompanied by specified documents. Page 15 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 143 provides that the Registrar-General may make an order terminating a strata scheme (also a termination order) or refuse to make the order. This clause further provides that a refusal of the Registrar-General does not prevent a person applying to the court for a termination order. Clause 144 provides that a termination order made by the Registrar-General has effect when the Registrar-General records the order in the folio for the land comprising the parcel. Clause 145 provides that, on recording the termination order in the folio for the land comprising the parcel, the Registrar-General must cancel the folios for the lots and common property in the parcel and, in the case of a freehold strata scheme, create a folio or folios for the land in the former parcel. Clause 146 specifies matters relating to the effect of the termination of a freehold strata scheme. Clause 147 specifies matters relating to the effect of the termination of a leasehold strata scheme. Division 5 Termination of leasehold strata schemes on expiry of leases Clause 148 provides that a leasehold strata scheme is terminated when all leases of lots and common property in the scheme expire or are otherwise determined without being wholly or partly replaced by further registered leases. This clause also specifies matters that take effect on the termination of a leasehold strata scheme, and provides for the payment of compensation for the value of improvements comprised in the parcel and for the cancellation of the folios for the leases of lots and common property in the scheme and the cancellation of the strata plan for the scheme. Clause 149 provides that a dispute about the amount of compensation payable for improvements in relation to a lot in a terminated leasehold strata scheme must be resolved by arbitration under the Commercial Arbitration Act 2010 or by order of the Supreme Court. This clause further provides that an application for an order of the court may be made by any party to the dispute and that notice of the application is to be served in accordance with rules of court. Clause 150 provides that an owner of a lot in a leasehold strata scheme, the owners corporation or a creditor of the owners corporation may, before the expiry of the leases of lots and common property in the scheme, apply to the Supreme Court for an order to continue the owners corporation in existence for the purposes, and until the time, specified in the order. This clause further provides for the directions that may be included in the order and the variation of any such order. Division 6 Miscellaneous Clause 151 provides that a notice served under any one of the particular specified clauses may be taken to be a notice served under another of those clauses if it relates to an application that is required to be treated as an application made under the other clause. Clause 152 provides that, subject to the requirement in the proposed Act for the Registrar-General to make recordings in the Register, and create folios, to give effect to orders relating to resumed land, the Registrar-General must make appropriate recordings in the Register to give effect to a variation order or a termination order under proposed Division 3. This clause further provides that in relation to making a recording about a termination order the Registrar-General must cancel or create specified folios and record specified matters. Part 10 Strata renewal process for freehold strata schemes Division 1 Preliminary Clause 153 provides that proposed Part 10 applies to freehold strata schemes, other than a strata scheme relating to a parcel that is the subject of a development contract or a strata scheme in which one or more of the lots in the scheme are, or form part of, a retirement village and that the purpose of the proposed Part is to facilitate the collective sale or redevelopment of those strata schemes. Clause 154 defines certain words and expressions used in proposed Part 10. Page 16 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 155 provides that proposed Part 10 and an order of the Land and Environment Court made under the Part prevail to the extent of any inconsistency with the Strata Schemes Management Act 2015. This clause further provides that Schedules 1 and 2 to the Strata Schemes Management Act 2015 apply to meetings of an owners corporation or strata committee for the purposes of the proposed Part. Division 2 Strata renewal proposals Clause 156 provides that any person may give a written proposal (a strata renewal proposal) to a strata committee about a collective sale or redevelopment of a strata scheme. Clause 157 provides that a strata committee that receives a strata renewal proposal must consider the proposal at a meeting of the committee and decide whether or not the proposal warrants further consideration by the owners corporation. This clause further provides that the minutes of the meeting must include a complete copy of the proposal and detailed reasons for the committee's decision, and that a copy of the minutes must be given to each owner. Clause 158 provides that a strata committee must convene a general meeting of the owners corporation if it decides a strata renewal proposal warrants further consideration by the owners corporation, and that a general meeting to consider a strata renewal proposal may also be convened by way of a qualified request under the Strata Schemes Management Act 2015. This clause further provides that the notice of the general meeting must comply with specified matters and be given to each owner at least 14 days before the meeting. Clause 159 provides that a strata renewal proposal lapses if the strata committee or the owners corporation decide the proposal does not warrant further consideration or investigation. Division 3 Establishment, membership, function, operation and dissolution of strata renewal committees Clause 160 provides that an owners corporation must, by resolution, establish a strata renewal committee to prepare a strata renewal plan for a strata renewal proposal, and elect its members, if the owners corporation decides that a strata renewal proposal warrants further investigation. A person who has a financial interest in more than 25% of the lots in the strata scheme is required to disclose that fact before voting for (or being elected as a member of) the strata renewal committee. This clause further provides that a strata renewal committee must consist of a chairperson and the number of other members, being not more than 8, the owners corporation determines, and that the committee is taken to have been established on the day its members are first elected. This clause also provides that appropriate forms of motion may be included in a motion for a resolution to establish a strata renewal committee. Clause 161 provides that an owners corporation may elect persons as members of the strata renewal committee if they are eligible for appointment or election to the strata committee of the owners corporation. This clause further provides that, before a person is elected to the strata renewal committee, the person must disclose conflicts of interest to the owners corporation. This clause also provides for when a nomination for election may be made, and that a person may be a member of both a strata renewal committee and a strata committee. Clause 162 provides that notice of the decision of an owners corporation to establish a strata renewal committee must be given to the owner of each lot in the strata scheme. This clause further provides that the notice must include the information prescribed by the regulations. Clause 163 specifies when a person is taken to vacate office as a member of the strata renewal committee. Clause 164 provides that the function of a strata renewal committee is to prepare a strata renewal plan relating to the relevant strata renewal proposal for consideration by the owners corporation and the owners of lots in the strata scheme. This clause further provides that, in exercising its function, the strata renewal committee must not spend more than an amount approved by the owners corporation, and may engage persons to help it prepare the strata renewal plan if delegated the authority to do so. This clause also provides that a strata renewal committee may ask the Page 17 Strata Schemes Development Bill 2015 [NSW] Explanatory note secretary of the owners corporation to convene a general meeting to seek approval about expenditure and other matters relating to a proposed strata renewal plan. This clause also specifies particular matters relating to acts or proceedings of a strata renewal committee. Clause 165 provides that a member of a strata renewal committee must disclose potential conflicts of interest to a meeting of the relevant strata committee. This clause further provides that the strata committee must inform the owners corporation of the potential conflict of interest, and the owners corporation is to make a decision about removing the member from office or allowing the member to remain in office (having regard to the nature of the member's interest). This clause also provides that a member must comply with any requirement of the owners corporation relating to the member's right to vote at, or participate in, meetings of the strata renewal committee. Clause 166 provides that, unless earlier dissolved, a strata renewal committee may exercise its function for 1 year after the day it is established or for any further period approved by special resolution of the owners corporation. Clause 167 specifies when a strata renewal committee is dissolved. Division 4 Procedures of strata renewal committees Clause 168 provides that a strata renewal committee may hold its meetings at the times and in the way it decides, that a quorum for a meeting of a strata renewal committee is a majority of its members and that a majority of votes cast at a meeting at which a quorum is present is the decision of the strata renewal committee. Clause 169 provides that the strata renewal committee must keep minutes of its meetings and a record of its decisions, and give copies of its minutes to specified persons and place a copy of the minutes on any owners corporation notice board. Division 5 Strata renewal plans Clause 170 specifies particular matters that must be included in a strata renewal plan relating to a proposed collective sale or redevelopment of a strata scheme. Clause 171 provides that the amount paid under a collective sale of a strata scheme provided for in a strata renewal plan must be apportioned among the owners in shares equal to their unit entitlements. This clause further provides that an amount paid to a dissenting owner in a strata scheme subject to a proposed redevelopment must not be less than the compensation value of the owner's lot. Clause 172 provides that, on completing a strata renewal plan, the strata renewal committee must convene a meeting of the owners corporation to consider the plan. This clause further provides that the owners corporation may amend the plan or return it to the strata renewal committee for amendment and may, by special resolution, decide to give the plan (whether or not amended) to the owners for their consideration. This clause also provides that a strata renewal plan has no force or effect merely because the owners corporation decides to give the plan to the owners for their consideration. Clause 173 provides that the secretary of the owners corporation must give a copy of the strata renewal plan to each owner if the owners corporation decides to give the plan to the owners for their consideration. This clause further provides that the copy of the plan must be accompanied by the information or documents prescribed by the regulations. Clause 174 provides that an owner may, at least 60 days after receiving a strata renewal plan and before the plan lapses, give written notice (a support notice) of the owner's support for the plan to the person who has been appointed as the returning officer. This clause further provides for witnessing the signatures of owners, registered mortgagees and covenant chargees on the support notice. This clause also provides that the notice has effect as a support notice under the proposed Part on the day it is given to the returning officer. This clause also provides that the returning officer must keep a record of the number of lots for which a support notice is in effect and advise owners of this information if requested. Page 18 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 175 provides that an owner may withdraw a support notice before the owner is given a notice under clause 176 about the required level of support. This clause further provides that a support notice that is withdrawn ceases to have effect as a support notice under the proposed Part. Clause 176 provides that if the required level of support is obtained (being the support of at least 75% of the owners) in relation to a proposed strata renewal plan, the returning officer must give the secretary of the owners corporation notice that the required level of support has been obtained and the secretary must then notify each owner and the Registrar-General of that fact. This clause further provides that, on receiving the notice, the Registrar-General must make appropriate recordings in the folio for the common property in the strata scheme concerned to show the scheme is the subject of a strata renewal plan. This clause further provides that, on and from the making of the recordings and for the purposes of the proposed Part, a support notice that is in effect for the strata renewal plan is taken to have been given by each subsequent owner and registered mortgagee or covenant chargee of the lot in relation to which the support notice was given. Clause 177 specifies when a strata renewal plan lapses, and that the plan ceases to have any force or effect if it lapses. The owners corporation must notify the Registrar-General when a plan lapses. Division 6 Applying for orders to give effect to strata renewal plans Clause 178 provides that, if the required level of support for a strata renewal plan is obtained, the secretary of the owners corporation or a member of the strata renewal committee must convene a general meeting of the owners corporation for the purpose of deciding whether to apply to the
and and Environment Court (the court) for an order to give effect to the plan, and that the owners corporation may, by resolution, apply for the order. This clause also clarifies that an application for an order may be made even if an owner of a lot in the strata scheme concerned was not the actual owner who gave a support notice. This clause also specifies matters the owners corporation must be satisfied about before applying for an order, and requires the secretary of the owners corporation to give tenants of lots on the strata scheme written notice of a decision to apply for an order. Clause 179 provides for the information or documents that must accompany an application for an order, and that notice of the application must be served on each owner, registered mortgagee or covenant chargee of a dissenting owner's lot and other persons directed by the court. Clause 180 provides that an objection to an application for an order to give effect to a strata renewal plan may be filed in the court by a dissenting owner, a registered mortgagee or covenant chargee of a dissenting owner's lot or a person on whom notice of the application was served under a direction of the court. This clause further provides that a person must file an objection within 21 days after notice of the application is served on the person, but need not be a party to proceedings relating to the application. Division 7 Orders to give effect to strata renewal plans Clause 181 provides that the court must hear and dispose of an application for an order in proceedings before the court. This clause further provides for matters relating to mediation or conciliation conferences ordered by the court in relation to an application. This clause also provides that, if a strata renewal plan is varied at mediation or a conciliation conference, the court must not make an order on the application unless the owner of each lot in relation to which a support notice has been given for the plan agrees in writing to the variation and the owners corporation has served notice of the variation on specified persons. This clause also specifies who may be joined as a party to the proceedings. Clause 182 provides that the court must make an order giving effect to a strata renewal plan if satisfied of specified matters, and must not make an order if the court is not satisfied about those matters. This clause further provides that the court may, on its own initiative, make minor variations to a strata renewal plan with the written agreement of the owner of each lot in relation to which a support notice has been given for the plan. This clause also requires the court to give Page 19 Strata Schemes Development Bill 2015 [NSW] Explanatory note written reasons for its decision to make, or not to make, an order to give effect to a strata renewal plan. Clause 183 provides that, if the court makes an order to give effect to a strata renewal plan, the order may include directions about specified matters. This clause also provides for lodgment of the order with the Registrar-General, recording by the Registrar-General, and that the order has effect when it is recorded. Clause 184 specifies the effect of the court making an order to give effect to a strata renewal plan for the collective sale of a strata scheme, including that the owner of each lot in the scheme must sell the owner's lot in accordance with the order. Clause 185 specifies the effect of the court making an order to give effect to a strata renewal plan for a redevelopment of a strata scheme, including that each dissenting owner of a lot in the scheme must sell the owner's lot in accordance with the order. Clause 186 provides that the court may make ancillary orders relating to a strata renewal plan. Clause 187 provides that an order of the court attaches to the parcel the subject of the application. This clause specifies the persons who are bound by the order, including successors in title to the owners. Division 8 Miscellaneous Clause 188 provides that the reasonable costs of proceedings for an application for an order to give effect to a strata renewal plan that are incurred by a dissenting owner are payable by the owners corporation. This clause further provides that the owners corporation can not levy a contribution for any part of the costs on a dissenting owner. This clause also provides that other matters relating to the costs of proceedings may be prescribed by the regulations. Clause 189 provides that, if there is an inconsistency between a strata renewal plan and an order of the court, the order prevails to the extent of the inconsistency. Clause 190 provides that, if a strata renewal proposal or a strata renewal plan relating to a proposal lapses, the proposal or a substantially similar proposal cannot be submitted under the proposed Part within 12 months after proposal or plan lapses. Part 11 Rates and charges relating to parcels Clause 191 defines rate for the purposes of Part 11. Clause 192 provides that rates, in relation to a lot comprised in a rateable parcel or a rateable part of a parcel, must not be made or levied on the relevant owners corporation. This clause further provides for how the rates are to be made or levied. Clause 193 provides that a rate may not be made or levied in relation to certain lots in a strata plan of subdivision or a plan that is registered for the purpose of effecting a resumption referred to in Part 7 unless the resumption has been effected. Clause 194 provides that charges or fees for specified water, sewerage, drainage or effluent services rendered in relation to a parcel or part of a parcel otherwise than exclusively for the use and benefit of a particular lot are payable by the relevant owners corporation. This clause further provides for how the charges or fees are to be worked out. Part 12 General Clause 195 provides that duty is not payable under the Duties Act 1997 in relation to the determination or partial determination of a lease under the proposed Act. Clause 196 provides that persons lodging plans or other document in electronic form for the purposes of the proposed Act must give the Registrar-General other specified documents if required to do so by the Registrar-General. Page 20 Strata Schemes Development Bill 2015 [NSW] Explanatory note Clause 197 provides for matters relating to the lodgment of plans and other documents in electronic form for the purposes of the proposed Act. Clause 198 provides that the Registrar-General may make particular records in the Register or a folio by recording the matters the Registrar-General considers appropriate. Clause 199 states that the proposed Act binds the Crown. Clause 200 provides that the Secretary may delegate the exercise of the Secretary's functions under the proposed Act. Clause 201 provides that proceedings for an offence under the proposed Act are to be dealt with summarily. Clause 202 provides for the making of regulations for the purposes of the proposed Act. Clause 203 repeals the Strata Schemes (Freehold Development) Act 1973 and the Strata Schemes (Leasehold Development) Act 1986. Clause 204 provides for a review of the proposed Act within 5 years of its assent. Schedule 1 Requirements for plans Schedule 1 sets out particular requirements of floor plans and location plans included with a proposed strata plan, strata plan of subdivision or strata plan of consolidation. Schedule 2 Requirements for schedules of unit entitlement Schedule 2 sets out requirements with which a schedule of unit entitlement relating to a strata plan or a strata plan of subdivision must comply. Schedule 3 Covenants implied in strata development contracts Schedule 3 specifies covenants that are part of a strata development contract relating to a strata scheme. Schedule 4 Strata management statements Schedule 4 sets out the matters that apply to a strata management statement, and with which a strata management statement must comply. Schedule 5 Rights and obligations implied in certain easements Schedule 5 specifies the rights and obligations conferred or imposed by an easement identified on a plan that has been lodged in relation to a part strata parcel that is the subject of a strata scheme. Schedule 6 Compensation payable on termination of leasehold strata scheme Schedule 6 sets out the formula for determining compensation payable in relation to the value of improvements comprised in a parcel for a leasehold strata scheme that is terminated. Schedule 7 Requirements for notices of meetings relating to strata renewal process Schedule 7 sets out the matters that must be included in notices of general meetings of an owners corporation in relation to strata renewal proposals and strata renewal plans. Page 21 Strata Schemes Development Bill 2015 [NSW] Explanatory note Schedule 8 Savings, transitional and other provisions Schedule 8 contains savings, transitional and other provisions consequent on the enactment of the proposed Act. Schedule 9 Amendment of Acts Schedule 9 makes consequential amendments to the Acts specified in the Schedule. Page 22 First print New South Wales Strata Schemes Development Bill 2015 Contents Page Part 1 Preliminary Division 1 Introduction 1 Name of Act 2 2 Commencement 2 3 Main objects of Act 2 Division 2 Interpretation 4 Definitions 2 5 Contiguous land 8 6 Boundaries of lot 8 7 Meaning of "subdivision" of a lot or common property 8 8 Relationship with Real Property Act 1900 8 Part 2 Creation of lots and common property in strata schemes Division 1 Strata plans 9 Subdivision of land by strata plan 9 10 General requirements for strata plan 9 11 Requirements for leasehold strata scheme 10 12 Effect on leases of registration of strata plan for leasehold strata scheme 10 b2013-124.d25 Strata Schemes Development Bill 2015 [NSW] Contents Page Division 2 Strata plans of subdivision and consolidation 13 Subdivision of lots and common property 11 14 Subdivision of development lot 12 15 Consolidation of lots 12 16 Effect of registration of strata plan of subdivision or consolidation for leasehold strata scheme 12 Division 3 Notices of conversion 17 Conversion of lots into common property 13 18 Effect of conversion of lots in leasehold strata scheme 13 Division 4 Building alteration plans 19 Alteration of building affecting lot boundary 14 20 Registrar-General to give plan to local council 14 Division 5 Additional requirements for registration of plans and notices 21 Requirement for certificate of title for common property 14 22 Plans to be signed or consented to 15 Division 6 Common property 23 Dealing with common property--general 15 24 Effect of creation of common property by registration of plans or notices 15 25 Acquisition of additional common property 16 26 Registration and effect of dealings 16 27 Surrender of lease or sublease of common property 17 28 Holding common property and dealing with lots and common property 17 29 Requirement for folio if no common property 17 30 References to folios and certificates of title 17 31 Requirement for folio if there is common property 18 32 Recording particular matters relating to common property 18 33 Transfer or lease of common property 19 34 Creation or variation of easements, restrictions and positive covenants 19 35 Dedication of common property 19 36 Restrictions on dealings under this Division 20 37 Effect of dealings under this Division 20 Division 7 Miscellaneous 38 Application of certain provisions of Conveyancing Act 1919 21 39 Encroachments shown on plans 21 40 When by-laws for strata scheme have effect 21 Part 3 Provisions relating to leases in leasehold strata schemes Division 1 Leases of lots and common property 41 Provisions generally applicable to leases 22 42 Dealings in lease of lot or common property 22 43 Powers of lessor if no current lease 22 Page 2 Strata Schemes Development Bill 2015 [NSW] Contents Page 44 Further leases of lots and common property 22 45 Lessor may refuse to grant further leases 23 Division 2 Re-entry or forfeiture of leases of lots 46 Restriction on re-entry or forfeiture 23 47 Order about re-entry or forfeiture 24 Division 3 Conversion of leasehold strata schemes to freehold strata schemes 48 Procedure for conversion 24 49 Effect of merger of leasehold estate with lessor's reversion 25 Part 4 Strata certificates Division 1 Preliminary 50 Definitions 26 51 Relationship with other Acts 26 52 When relevant planning approval is in force 26 53 Who may apply for strata certificate 26 Division 2 Issue of strata certificates by local councils 54 Strata certificate for strata plans and subdivision of development lots 27 55 Strata certificate for subdivision not involving development lot 28 56 Strata certificate for notices of conversion 28 57 Restriction on issue of strata certificate 29 Division 3 Issue of strata certificates by accredited certifiers 58 Strata certificate for strata plans and subdivision of development lots 29 59 Strata certificate for subdivision not involving development lot 30 60 Strata certificate for notices of conversion 30 61 Restrictions on issue of strata certificate 31 Division 4 Strata certificates relating to encroachments onto public places, and to utility lots 62 Issue of strata certificates relating to encroachments 31 63 Restriction on use of utility lot 31 64 Release of restriction on use of utility lot 32 Division 5 Notice of decisions and appeals 65 Notice of decision 32 66 Appeal to Land and Environment Court 32 Division 6 Application of Building Professionals Act 2005 67 Accredited certifiers 33 68 Insurance of accredited certifiers 33 Division 7 Miscellaneous 69 Satisfaction about compliance with conditions precedent to issue of strata certificates 33 70 Regulations 34 Page 3 Strata Schemes Development Bill 2015 [NSW] Contents Page Part 5 Staged development Division 1 Preliminary 71 Purpose and scope of Part 35 72 Definitions 35 73 Explanation of staged development 35 74 Meaning of "development concern" 35 Division 2 Restriction on granting planning approval 75 Obligations of planning authorities 36 Division 3 Strata development contracts and registration of contracts and amendments 76 Form and content of strata development contract 36 77 Concept plan 37 78 Variation of liability for common property expenses 37 79 Signing and lodging strata development contract and amendments 37 80 Registering strata development contract and amendments 38 81 Effect of strata development contract 38 82 Use of common property and development lot by developer 39 83 Adding land to a parcel subject to a strata development contract 39 Division 4 Amendment of strata development contracts 84 Amendment of strata development contract 40 85 Notice of particular decision, and appeal 41 86 Approval of amendments by Land and Environment Court 41 Division 5 Provisions relating to development concerns 87 Right to complete permitted development 42 88 Meetings of owners corporation relating to development concerns 42 Division 6 Conclusion of development schemes 89 When development scheme is concluded 43 90 Revised schedule of unit entitlement 43 91 Registrar-General to record matters about conclusion of development scheme 44 92 Order for extension or conclusion of development scheme 44 Division 7 Applications for assistance 93 Application for assistance 45 94 Investigation of application 45 95 Application of Fair Trading Act 1987 to investigation 46 96 Grant of legal assistance 46 97 Resolution authorising application by owners corporation 46 Division 8 Miscellaneous 98 Functions of Secretary 47 Page 4 Strata Schemes Development Bill 2015 [NSW] Contents Page Part 6 Strata management statements and easements relating to part strata parcels Division 1 Strata management statements 99 Requirement to register strata management statement 48 100 Form and content of strata management statement 48 101 Registration of strata management statement and amendment 48 102 Recording information about strata management statement in folios 48 103 Amendment of strata management statement 49 104 Signing of strata management statement and amendment 49 105 Effect of strata management statement 50 Division 2 Easements 106 Easements on registration of strata plan that creates part strata parcel 50 107 Other easements in particular strata schemes 51 Division 3 Miscellaneous 108 Registered building management statement taken to be strata management statement 52 109 Obligation of lessee to comply with particular management statements 52 110 Obligation to give information about particular management statements 52 Part 7 Compulsory acquisition of lots and common property 111 Application of Part 53 112 Restriction on resumptions affecting parcels 53 113 Requirements for registration of plans to effect resumption 53 114 Effect of resumption 54 115 Readjustment of strata scheme for purposes of resumption 54 116 Costs 55 117 Common property not to pass with lot or part of lot in certain circumstances 55 118 Severance of lots by resumption 55 119 Resumption by authority bound by Act 56 120 Resumption by authority not bound by Act 56 Part 8 Particular functions of Registrar-General 121 Registration of plans and other instruments 57 122 Provisions applying to plans and certain other documents 57 123 Power to adjust unit entitlements 57 124 Recordings about restrictive use conditions 58 125 Prohibition on recordings in the Register in certain circumstances 58 126 Certain recordings to be made by Registrar-General 58 127 Functions if resumed land remains in strata scheme 59 128 Functions if resumed land is excluded from strata scheme 59 Page 5 Strata Schemes Development Bill 2015 [NSW] Contents Page Part 9 Variation or termination of strata schemes Division 1 Preliminary 129 Definitions 60 Division 2 Variation of strata schemes 130 Application for order consequent on damage to or destruction of building 60 131 Order to vary strata scheme 60 132 When order takes effect 61 133 Direction of court to treat application differently 61 134 Costs 61 Division 3 Termination of strata schemes by order of court 135 Application for order to terminate strata scheme 61 136 Order to terminate strata scheme 62 137 When order takes effect 63 138 Effect of order 63 139 Dealing with disputes about value of improvements for leasehold strata schemes 63 140 Direction of court to treat application differently 64 141 Costs 64 Division 4 Termination of strata schemes by Registrar-General 142 Application to Registrar-General for termination of strata scheme 64 143 Decision about terminating strata scheme 65 144 When order takes effect 65 145 Registrar-General to record termination of strata scheme 65 146 Effect of order for freehold strata scheme 65 147 Effect of order for leasehold strata scheme 65 Division 5 Termination of leasehold strata schemes on expiry of leases 148 Termination on expiry of leases 66 149 Dispute about value of improvements 67 150 Order to continue owners corporation for specified purposes 67 Division 6 Miscellaneous 151 Interchangeability of notices 68 152 Consequences of making order 68 Part 10 Strata renewal process for freehold strata schemes Division 1 Preliminary 153 Application and purpose of Part 69 154 Definitions 69 155 Application of Strata Schemes Management Act 2015 70 Division 2 Strata renewal proposals 156 Submission of strata renewal proposal 70 157 Strata committee to consider proposal 70 Page 6 Strata Schemes Development Bill 2015 [NSW] Contents Page 158 Convening general meeting to consider proposal 70 159 Lapsing of proposal 71 Division 3 Establishment, membership, function, operation and dissolution of strata renewal committees 160 Establishment of committee 71 161 Election of members 71 162 Notice of decision to establish committee 72 163 Vacation of office 72 164 Function and operation of committee 72 165 Conflicts of interest 73 166 Period of operation of committee 73 167 Dissolution of committee 73 Division 4 Procedures of strata renewal committees 168 Meetings and voting 73 169 Minutes and record of decisions 74 Division 5 Strata renewal plans 170 Content of strata renewal plan 74 171 Requirements relating to sale of lots 75 172 Consideration of plan by owners corporation 75 173 Copy of plan to be given to owners 75 174 Notice of owner's decision to support plan 76 175 Withdrawal of support notice 76 176 Notice if required level of support obtained 76 177 Lapsing of plan 77 Division 6 Applying for orders to give effect to strata renewal plans 178 Decision to apply for order 77 179 Application for order 78 180 Objection to application 79 Division 7 Orders to give effect to strata renewal plans 181 Hearing of application 79 182 Decision of court 80 183 Court order and directions 80 184 Effect of order relating to collective sale 81 185 Effect of order relating to redevelopment 81 186 Ancillary orders 82 187 Order attaches to land and is binding 83 Division 8 Miscellaneous 188 Costs 83 189 Relationship between orders and strata renewal plans 83 190 Limitation on submitting strata renewal proposal 83 Part 11 Rates and charges relating to parcels 191 Definition 84 192 Rating of lots 84 Page 7 Strata Schemes Development Bill 2015 [NSW] Contents Page 193 Certain lots not rateable 84 194 Charge or fee for services 84 Part 12 General 195 Duty not payable for determination of lease 86 196 Notice to produce electronic form plans and other documents 86 197 Application of Act to electronic form plans and other documents 86 198 Recordings in Register or folios--generally 87 199 Act to bind Crown 87 200 Delegation by Secretary 87 201 Proceedings for offences 87 202 Regulations--general 87 203 Repeal of Acts 88 204 Review of Act 88 Schedule 1 Requirements for plans 89 Schedule 2 Requirements for schedules of unit entitlement 90 Schedule 3 Covenants implied in strata development contracts 92 Schedule 4 Strata management statements 94 Schedule 5 Rights and obligations implied in certain easements 96 Schedule 6 Compensation payable on termination of leasehold strata scheme 99 Schedule 7 Requirements for notices of meetings relating to strata renewal process 100 Schedule 8 Savings, transitional and other provisions 101 Schedule 9 Amendment of Acts 104 Page 8 New South Wales Strata Schemes Development Bill 2015 No , 2015 A Bill for An Act to create freehold strata schemes and leasehold strata schemes; to provide for dealings with lots and common property in the schemes and for varying, terminating and renewing the schemes; and to repeal the Strata Schemes (Freehold Development) Act 1973 and the Strata Schemes (Leasehold Development) Act 1986. Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary The Legislature of New South Wales enacts: 1 Part 1 Preliminary 2 Division 1 Introduction 3 1 Name of Act 4 This Act is the Strata Schemes Development Act 2015. 5 2 Commencement 6 This Act commences on a day or days to be appointed by proclamation. 7 3 Main objects of Act 8 The main objects of this Act are to provide for: 9 (a) the subdivision of land, including buildings, into cubic spaces to create 10 freehold strata schemes and leasehold strata schemes, and 11 (b) the way in which lots and common property in strata schemes may be dealt 12 with, and 13 (c) the variation, termination and renewal of strata schemes. 14 Division 2 Interpretation 15 4 Definitions 16 (1) In this Act: 17 accepted lease or sublease means a lease or sublease, or a transfer of a lease or 18 sublease, accepted by an owners corporation under section 25 (1). 19 accredited certifier--see section 67. 20 administration sheet means a document in the approved form that provides for 21 administrative matters relating to the registration of plans under this Act. 22 aggregate unit entitlement of lots in a strata scheme means the sum of the unit 23 entitlements of the lots. 24 approved form means a form approved by the Registrar-General for use under this 25 Act. 26 building, in relation to a strata scheme or a proposed strata scheme, means a building 27 containing a lot or proposed lot, or part of a lot or proposed lot, in the scheme or 28 proposed scheme. 29 building alteration plan means a plan that is registered as a building alteration plan, 30 and includes any information, certificate or other document required by this Act or 31 the regulations to be included with the plan before it may be registered. 32 by-laws for a strata scheme means the by-laws in force for the scheme. 33 chargee, in relation to a lot or development lot in a leasehold strata scheme, means a 34 chargee of the leasehold estate of the lot. 35 common infrastructure means: 36 (a) the cubic space occupied by a vertical structural member of a building, other 37 than a wall, or 38 (b) the pipes, wires, cables or ducts that are not for the exclusive benefit of one lot 39 and are: 40 (i) in a building in relation to which a plan for registration as a strata plan 41 was lodged with the Registrar-General before 1 March 1986, or 42 Page 2 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary (ii) otherwise--in a building or in a part of a parcel that is not a building, or 1 (c) the cubic space enclosed by a structure enclosing pipes, wires, cables or ducts 2 referred to in paragraph (b). 3 common property, in relation to a strata scheme or a proposed strata scheme, means 4 any part of a parcel that is not comprised in a lot (including any common 5 infrastructure that is not part of a lot). 6 common property rights by-law has the same meaning as it has in the Strata Schemes 7 Management Act 2015. 8 community scheme has the same meaning as it has in the Community Land 9 Development Act 1989. 10 company nominee of a corporation has the same meaning as it has in the Strata 11 Schemes Management Act 2015. 12 covenant chargee of a lot or development lot in a leasehold strata scheme means a 13 covenant chargee of the leasehold estate of the lot. 14 current plan means a current plan as defined in section 7A of the Conveyancing Act 15 1919 that is registered, other than a strata plan, a strata plan of subdivision or a strata 16 plan of consolidation. 17 current plan lot--see section 9 (4). 18 Department means the Department of Finance, Services and Innovation. 19 developer of a strata scheme constituted on registration of a strata plan proposed 20 under a development scheme means the person who, for the time being, is: 21 (a) the original owner of the strata scheme, or 22 (b) a person, other than the original owner, who is the owner of a development lot 23 within the strata plan. 24 development has the same meaning as it has in the Environmental Planning and 25 Assessment Act 1979. 26 development concern--see section 74. 27 development lot means a lot in a strata plan or strata plan of subdivision that is 28 identified by a strata development contract as a lot that is to be the subject of a strata 29 plan of subdivision under the development scheme for the contract. 30 development scheme means the scheme of development provided for, and 31 represented by, a strata development contract. 32 drainage reserve means land that is held by a local council for drainage purposes 33 under section 49 of the Local Government Act 1993. 34 floor includes a stairway or ramp. 35 floor area of a lot means the area occupied on a horizontal plane by the base of the 36 cubic space of the lot. 37 floor plan means a plan that: 38 (a) defines by lines (each a base line) the base of the vertical boundaries of each 39 cubic space forming the whole of a proposed lot, or the whole of a part of a 40 proposed lot, to which the plan relates, and 41 (b) shows: 42 (i) the floor area of each proposed lot, and 43 (ii) if a proposed lot has more than one part--the floor area of each part 44 together with the aggregate of the floor areas of the parts, and 45 (c) if a proposed lot or part of a proposed lot is superimposed on another proposed 46 lot or part--shows the separate base lines of the proposed lots or parts, by 47 reference to floors or levels, in the order in which the superimposition occurs. 48 Page 3 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary folio means: 1 (a) in relation to a lot or common property in a freehold strata scheme, a folio of 2 the Register for the lot or common property, or 3 (b) in relation to a lot or common property in a leasehold strata scheme, a folio of 4 the Register for a lease of the lot or common property. 5 freehold strata scheme means a strata scheme in which no lots or common property 6 in the scheme are subject to a lease or leases referred to in section 11. 7 function includes a power, authority or duty, and exercise a function includes 8 perform a duty. 9 initial period has the same meaning as it has in the Strata Schemes Management Act 10 2015. 11 leasehold strata scheme means a strata scheme in which all lots and common 12 property in the scheme are subject to a lease or leases referred to in section 11. 13 lessee, in relation to a lot, development lot or common property in a leasehold strata 14 scheme, means the lessee of the leasehold estate under a lease registered on the folio 15 for the lot, development lot or common property, but does not include an owner of a 16 lot. 17 lessor of a leasehold strata scheme means the person who holds the fee simple in the 18 lots and common property in the scheme. 19 liabilities of an owners corporation in relation to the termination of a strata scheme 20 under Part 9 or 10 means any liabilities, debts or obligations of the owners 21 corporation (whether present or future, whether vested or contingent and whether 22 personal or assignable). 23 local council, in relation to land, means: 24 (a) the council of the area under the Local Government Act 1993 in which the land 25 is situated, or 26 (b) a person declared by the regulations to be the local council for the land for the 27 purposes of this Act or any specified provision of this Act. 28 location plan means a plan that: 29 (a) relates to land the subject of a proposed strata scheme, and 30 (b) if the scheme does not relate to a proposed part strata parcel--delineates the 31 perimeter of the land and the location, in relation to the perimeter, of each: 32 (i) building on the land, and 33 (ii) proposed lot or part of a proposed lot not within a building, and 34 (c) if the scheme relates to a proposed part strata parcel: 35 (i) delineates the perimeter of the site of the building of which the proposed 36 part strata parcel forms part and the location, in relation to the perimeter, 37 of the building and proposed part strata parcel, and 38 (ii) delineates the location, in relation to the perimeter of the proposed part 39 strata parcel, of the part of the building the subject of the proposed strata 40 scheme and each proposed lot or part of a proposed lot not within the 41 building, and 42 (d) shows the particulars prescribed by the regulations. 43 lodge means lodge in the office of the Registrar-General. 44 lot, in relation to a strata scheme, means one or more cubic spaces shown as a lot on 45 a floor plan relating to the scheme, but does not include any common infrastructure, 46 unless the common infrastructure is described on the plan, in the way prescribed by 47 the regulations, as a part of the lot. 48 Page 4 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary mortgagee, in relation to a lot or development lot in a leasehold strata scheme, means 1 a mortgagee of the leasehold estate of the lot. 2 notice of conversion means a notice that is registered as a notice of conversion, and 3 includes any information, certificate or other document required by this Act or the 4 regulations to be included with the notice before it may be registered. 5 notice of resumption means a notice, notification or other instrument publication of 6 which vests land described in the notice, notification or instrument in a resuming 7 authority by way of resumption. 8 occupier of a lot means a person in lawful occupation of the lot. 9 original owner: 10 (a) of a freehold strata scheme means the person who held the fee simple in the 11 parcel the subject of the scheme when the strata plan for the scheme was 12 registered, or 13 (b) of a leasehold strata scheme means the person who, immediately after 14 registration of the strata plan for the scheme, is entitled to a leasehold estate in 15 all the lots in the scheme or is entitled to a leasehold estate in 2 or more lots in 16 the scheme with total unit entitlements exceeding more than two-thirds of the 17 aggregate unit entitlement of the lots in the scheme. 18 owner of a lot in a strata scheme means a person for the time being recorded in the 19 Register as entitled to an estate in fee simple in the lot (in the case of a freehold strata 20 scheme) or as entitled to a leasehold estate in the lot (in the case of a leasehold strata 21 scheme), but does not include a sublessee of a lot in a leasehold strata scheme. 22 Note. Under section 43 (1), a lessor of a leasehold strata scheme may be taken to be the 23 owner of a lot in the scheme if the lessor is entitled to immediate possession of the lot. 24 owners corporation of a strata scheme means the owners corporation constituted 25 under the Strata Schemes Management Act 2015 for the scheme. 26 parcel means: 27 (a) in relation to a strata scheme, the land comprising the lots and common 28 property in the scheme, or 29 (b) in relation to a plan lodged for registration as a strata plan, the land comprised 30 in the plan. 31 part strata parcel means a parcel created by a subdivision permitted by 32 section 9 (1) (b). 33 planning approval means: 34 (a) a development consent within the meaning of the Environmental Planning and 35 Assessment Act 1979, or 36 (b) an approval under Part 3A or Part 5.1 of that Act. 37 planning authority, in relation to a planning approval, means the entity or person 38 authorised under the Environmental Planning and Assessment Act 1979 to grant the 39 approval. 40 positive covenant means a positive covenant imposed on land under section 88D 41 or 88E of the Conveyancing Act 1919. 42 public place means land that is a drainage reserve, public reserve or public road. 43 public reserve has the same meaning as it has in the Local Government Act 1993. 44 public road has the same meaning as it has in the Roads Act 1993. 45 qualified valuer means a person who: 46 (a) has membership of the Australian Valuers Institute (other than associate or 47 student membership), or 48 Page 5 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary (b) has membership of the Australian Property Institute (other than student or 1 provisional membership), acquired in connection with his or her occupation as 2 a valuer, or 3 (c) has membership of the Royal Institution of Chartered Surveyors as a chartered 4 valuer, or 5 (d) is of a class prescribed by the regulations. 6 registered means registered in the office of the Registrar-General. 7 registered building management statement has the same meaning as it has in 8 section 196C of the Conveyancing Act 1919. 9 registered land surveyor means a person who is registered as a land surveyor under 10 the Surveying and Spatial Information Act 2002. 11 relevant planning approval that is in force--see section 52. 12 replacement lease for a proposed strata plan of subdivision or strata plan of 13 consolidation in relation to a leasehold strata scheme means a lease: 14 (a) relating to a proposed lot comprised in the plan, and 15 (b) containing provisions to the effect that the lease is in substitution for a lease 16 determined or otherwise affected by the proposed subdivision or 17 consolidation, and 18 (c) having terms all of which are expressed to commence on registration of the 19 plan and to expire at the same time as any lease to be determined, and 20 (d) if the lease confers rights of renewal--having the same renewal terms as any 21 lease to be determined. 22 restrictive use condition--see section 63. 23 resuming authority means an entity that may resume land by way of resumption. 24 resumption means the compulsory acquisition of land under an Act or an Act of the 25 Commonwealth authorising compulsory acquisition of land. 26 rights of an owners corporation in relation to the termination of a strata scheme under 27 Part 9 or 10 means any rights or powers of the owners corporation (whether present 28 or future, whether vested or contingent and whether personal or assignable). 29 schedule of unit entitlement, in relation to a strata scheme, means the schedule 30 recorded as the schedule of unit entitlement in the folio for the common property in 31 the scheme. 32 Secretary means the Secretary of the Department. 33 special resolution has the same meaning as it has in the Strata Schemes Management 34 Act 2015. 35 statutory interest means a charge or other proprietary interest (whether or not it is 36 recorded in the Register) that: 37 (a) is created by an Act or an Act of the Parliament of the Commonwealth, and 38 (b) affects a lot or common property, and 39 (c) is enforceable against an owner of the lot or an owners corporation. 40 strata certificate means a certificate in the approved form issued under Part 4 that 41 authorises the registration of a strata plan, strata plan of subdivision or notice of 42 conversion. 43 strata committee of an owners corporation means the strata committee of the owners 44 corporation under the Strata Schemes Management Act 2015. 45 strata development contract means a strata development contract registered under 46 Part 5. 47 Page 6 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary strata management statement means a strata management statement that complies 1 with section 100. 2 strata plan means a plan that is registered as a strata plan, and includes any 3 information, certificate or other document required by this Act or the regulations to 4 be included with the plan before it may be registered. 5 strata plan of consolidation means a plan that is registered as a strata plan of 6 consolidation, and includes any information, certificate or other document required 7 by this Act or the regulations to be included with the plan before it may be registered. 8 strata plan of subdivision means a plan that is registered as a strata plan of 9 subdivision, and includes any information, certificate or other document required by 10 this Act or the regulations to be included with the plan before it may be registered. 11 strata roll has the same meaning as it has in the Strata Schemes Management Act 12 2015. 13 strata scheme means: 14 (a) the way a parcel is subdivided under this Act into lots or lots and common 15 property, and 16 (b) the way unit entitlements are allocated under this Act among the lots, and 17 (c) the rights and obligations, between themselves, of owners of lots, other 18 persons having proprietary interests in or occupying the lots and the owners 19 corporation, as conferred or imposed under this Act or the Strata Schemes 20 Management Act 2015. 21 subdivision of a lot or common property--see section 7. 22 surveyor's certificate, in relation to a proposed strata plan, strata plan of subdivision 23 or strata plan of consolidation, means a certificate in the approved form given by a 24 registered land surveyor and certifying that each applicable requirement of 25 Schedule 1 for the proposed strata plan, strata plan of subdivision or strata plan of 26 consolidation has been met. 27 unanimous resolution has the same meaning as it has in the Strata Schemes 28 Management Act 2015. 29 unit entitlement of a lot in a strata scheme means the unit entitlement of the lot 30 shown on the schedule of unit entitlement for the scheme. 31 utility lot has the same meaning as it has in the Strata Schemes Management Act 32 2015. 33 valuer's certificate, in relation to a proposed schedule of unit entitlement, means a 34 certificate of valuation in the approved form given by a qualified valuer and 35 certifying that the unit entitlements of lots to which the proposed schedule of unit 36 entitlement relates are apportioned as required under Schedule 2. 37 wall includes a door, window or other structure dividing a lot: 38 (a) from common property or another lot, or 39 (b) if the lot is a lot in a part strata parcel--from a part of a building that is not 40 within the parcel. 41 water supply authority means: 42 (a) the Sydney Water Corporation, the Hunter Water Corporation or a water 43 supply authority within the meaning of the Water Management Act 2000, or 44 (b) a council or county council exercising water supply, sewerage or stormwater 45 drainage functions under Division 2 of Part 3 of Chapter 6 of the Local 46 Government Act 1993. 47 (2) Notes included in this Act do not form part of this Act. 48 Page 7 Strata Schemes Development Bill 2015 [NSW] Part 1 Preliminary 5 Contiguous land 1 In this Act, land is contiguous to other land even if it is divided, or separated from 2 the other land, by a natural feature (for example, a watercourse), a railway, a road, a 3 public reserve or a drainage reserve. 4 6 Boundaries of lot 5 (1) For the purposes of this Act, the boundaries of a lot shown on a floor plan are: 6 (a) except as provided by paragraph (b): 7 (i) for a vertical boundary in which the base of a wall corresponds 8 substantially with a base line--the inner surface of the wall, and 9 (ii) for a horizontal boundary in which a floor or ceiling joins a vertical 10 boundary of the lot--the upper surface of the floor and the under surface 11 of the ceiling, or 12 (b) the boundaries described on the floor plan relating to the lot, in the way 13 prescribed by the regulations, by reference to a wall, floor or ceiling in a 14 building to which the plan relates or to common infrastructure within the 15 building. 16 (2) In this section: 17 base line--see paragraph (a) of the definition of floor plan in section 4 (1). 18 7 Meaning of "subdivision" of a lot or common property 19 (1) In this Act, subdivision of a lot or common property means the alteration of the 20 boundaries of: 21 (a) one or more lots to create only 2 or more different lots, or 22 (b) one or more lots to create one or more different lots and common property, or 23 (c) one or more lots and common property to create one or more different lots or 24 one or more different lots and common property, or 25 (d) common property to create one or more lots. 26 (2) However, subdivision of a lot or common property does not include the 27 consolidation of 2 or more lots into one lot or the conversion of one or more lots into 28 common property. 29 8 Relationship with Real Property Act 1900 30 (1) This Act is to be read and interpreted with the Real Property Act 1900 as if it formed 31 part of that Act, and that Act applies to lots and common property in the same way 32 as it applies to other land. 33 (2) However, if a provision of this Act is inconsistent with a provision of the Real 34 Property Act 1900, this Act prevails to the extent of the inconsistency. 35 (3) Words and expressions used in this Act have the same meanings as in the Real 36 Property Act 1900 unless they are defined differently in this Act or the context or 37 subject-matter otherwise indicates or requires. 38 Page 8 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes Part 2 Creation of lots and common property in strata 1 schemes 2 Division 1 Strata plans 3 9 Subdivision of land by strata plan 4 (1) The following land may be subdivided into lots, or lots and common property, by the 5 registration of a plan as a strata plan: 6 (a) land including the whole of a building and consisting of one current plan lot or 7 2 or more contiguous current plan lots, 8 (b) land including part only of a building and consisting of one current plan lot or 9 2 or more current plan lots (whether contiguous or not). 10 (2) For the purpose of creating a leasehold strata scheme, land that is subject to a lease 11 or leases may be subdivided under this section. 12 (3) Land that is a development lot in a strata plan cannot be subdivided under this 13 section. 14 Note. See section 14 for subdivision of land that is a development lot. 15 (4) In this section: 16 current plan lot means an existing lot within the meaning of the Conveyancing Act 17 1919, other than a lot as defined in this Act. 18 land means land under the Real Property Act 1900 that is held in fee simple, other 19 than land comprised in a limited folio or qualified folio. 20 10 General requirements for strata plan 21 (1) A plan intended to be registered as a strata plan must: 22 (a) include a location plan, a floor plan and an administration sheet, and 23 (b) specify or be accompanied by proposed by-laws as follows: 24 (i) if model by-laws are proposed to be adopted for the strata scheme-- 25 specify the model by-laws to be adopted and, if the model by-laws 26 include any alternative versions of any by-law, specify the version to be 27 adopted, 28 (ii) if by-laws other than model by-laws are proposed to be adopted for the 29 strata scheme--be accompanied by a copy of the other by-laws in the 30 approved form and signed by the persons required to sign the plan under 31 section 22 (1), and 32 Note. For the matters in relation to which by-laws other than model by-laws may 33 be made, see Part 7 of the Strata Schemes Management Act 2015. 34 (c) if the proposed strata plan is intended to create a development lot--be 35 accompanied by: 36 (i) the strata development contract relating to the lot, and 37 (ii) the certificate of the planning authority given under section 75 (2), 38 unless the plan is lodged by the Crown, and 39 (d) if the proposed strata plan is intended to create a part strata parcel--be 40 accompanied by a strata management statement, unless the requirement for a 41 strata management statement is waived under section 99 (2), and 42 (e) indicate whether the proposed strata plan is intended to create a freehold strata 43 scheme or a leasehold strata scheme. 44 Page 9 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (2) If the floor plan for the proposed strata scheme does not provide for common 1 property, the floor plan must show that at least one, or part of one, of the proposed 2 lots is superimposed on another, or part of another, of the proposed lots. 3 (3) The administration sheet for the proposed strata scheme must include the following: 4 (a) a proposed schedule of unit entitlement relating to the scheme that complies 5 with clause 2 of Schedule 2, 6 (b) the address for service of documents on the proposed owners corporation, 7 (c) a strata certificate for the proposed strata plan, 8 (d) a surveyor's certificate for the proposed strata plan, 9 (e) a valuer's certificate for the proposed schedule of unit entitlement, 10 (f) any other information or document prescribed by the regulations. 11 Note. Subsection (3) (c) does not apply to a plan lodged by the Crown. See section 199 (2). 12 (4) The Registrar-General may refuse to register a plan as a strata plan if the 13 Registrar-General considers that the boundaries of the land over which the plan is to 14 be registered are not sufficiently defined in a plan registered under Division 3 of 15 Part 23 of the Conveyancing Act 1919. 16 (5) In this section: 17 model by-law means a model by-law prescribed by the regulations under the Strata 18 Schemes Management Act 2015. 19 11 Requirements for leasehold strata scheme 20 (1) If a proposed strata plan is intended to create a leasehold strata scheme, the 21 Registrar-General must not register the plan unless: 22 (a) separate leases for, or that correspond to, each lot and the common property 23 shown on the plan are registered, or have been lodged for registration, under 24 the Real Property Act 1900, and 25 (b) the separate leases are all expressed to expire at the same time and, if the leases 26 confer rights of renewal, the renewal terms are the same, and 27 (c) if the separate leases have been lodged for registration under the Real Property 28 Act 1900--the terms of the leases are all expressed to commence on 29 registration of the plan. 30 (2) A plan that, under this Act, is lodged for registration as a strata plan for a leasehold 31 strata scheme and is required to be accompanied by a lease or leases to be registered 32 under the Real Property Act 1900 is taken to have been registered only when the lease 33 or leases are registered under that Act. 34 12 Effect on leases of registration of strata plan for leasehold strata scheme 35 (1) Subsection (2) applies if, immediately before registration of a strata plan for a 36 leasehold strata scheme, the whole of the parcel was subject to a lease or leases 37 registered under the Real Property Act 1900 (each a registered lease) and intended 38 to be wholly or partly replaced by leases (each a replacement lease) of the lots and 39 the common property shown on the plan. 40 (2) On registration of the strata plan: 41 (a) each registered lease is determined (each a determined lease) to the extent it 42 related to the lots and common property, and 43 (b) any estate, interest or caveat affecting a determined lease affects a replacement 44 lease to the extent it relates to the lots, and 45 Page 10 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (c) all rights and obligations of the lessee, under a determined lease, existing 1 immediately before the registration continue to be exercisable, or may be 2 discharged, by that lessee as if the lease had not been determined, other than 3 to the extent that the rights and obligations are: 4 (i) inconsistent with the provisions of a replacement lease, or 5 (ii) varied by the relevant parties. 6 (3) Subsection (4) applies if, immediately before registration of a plan as a strata plan for 7 a leasehold strata scheme, the parcel was subject to 2 or more registered leases 8 intended to subsist after registration of the plan as leases of the lots shown on the 9 plan. 10 (4) On registration of the strata plan: 11 (a) each lease that, immediately before the registration, was a lease of a part of the 12 parcel that corresponds to a lot shown on the plan becomes a lease of that lot 13 for the remainder of the term of the lease, subject to any estate, interest or 14 caveat affecting the lease immediately before the registration, and 15 (b) if any part of the parcel comprised in the plan is shown as common property, 16 a lease affecting that part immediately before the registration is determined to 17 the extent it relates to the common property. 18 Division 2 Strata plans of subdivision and consolidation 19 13 Subdivision of lots and common property 20 (1) A lot or common property may be subdivided by the registration of a plan as a strata 21 plan of subdivision. 22 (2) In subsection (1): 23 common property does not include common property the subject of an accepted lease 24 or sublease. 25 lot does not include a development lot. 26 (3) The plan must: 27 (a) include a location plan (if required by the Registrar-General), a floor plan and 28 an administration sheet, and 29 (b) if the plan is for a leasehold strata scheme--be accompanied by the 30 replacement leases for the plan. 31 (4) If land comprised in the plan is held by the original owner of the strata scheme, the 32 plan must not be registered unless: 33 (a) the initial period has expired, or 34 (b) the original owner owns all lots in the scheme, or 35 (c) an order has been made under section 27 of the Strata Schemes Management 36 Act 2015 authorising the registration of the plan. 37 (5) If the proposed strata plan of subdivision is intended to subdivide common property 38 to which a common property rights by-law relates, the by-law must be repealed or 39 amended so it does not relate to the common property intended to be subdivided. 40 (6) The administration sheet for the plan must include the following: 41 (a) a proposed schedule of unit entitlement relating to the strata scheme that 42 complies with clause 3 or 4 of Schedule 2, 43 (b) a strata certificate for the proposed strata plan of subdivision, 44 (c) a surveyor's certificate for the proposed strata plan of subdivision, 45 Page 11 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (d) a valuer's certificate for the proposed schedule of unit entitlement, 1 (e) any other information or document prescribed by the regulations. 2 Note. Subsection (6) (b) does not apply to a plan lodged by the Crown. See section 199 (2). 3 14 Subdivision of development lot 4 (1) A development lot may be subdivided into lots, or lots and common property, by the 5 registration of a plan as a strata plan of subdivision that complies with the relevant 6 development contract. 7 (2) The plan must: 8 (a) include a location plan, a floor plan and an administration sheet, and 9 (b) if the plan is for a leasehold strata scheme--be accompanied by the 10 replacement leases for the plan. 11 (3) The administration sheet for the plan must include the following: 12 (a) a proposed schedule of unit entitlement relating to the strata scheme that 13 complies with clause 5 of Schedule 2, 14 (b) a strata certificate for the proposed strata plan of subdivision, 15 (c) a surveyor's certificate for the proposed strata plan of subdivision, 16 (d) a valuer's certificate for the proposed schedule of unit entitlement, 17 (e) any other information or document prescribed by the regulations. 18 Note. Subsection (3) (b) does not apply to a plan lodged by the Crown. See section 199 (2). 19 (4) In this section: 20 lot includes a development lot. 21 15 Consolidation of lots 22 (1) Two or more lots may be consolidated into one lot by the registration of a plan as a 23 strata plan of consolidation. 24 (2) The plan must: 25 (a) include an administration sheet, and 26 (b) if the plan is for a leasehold strata scheme--be accompanied by the 27 replacement leases for the plan. 28 (3) The administration sheet for the plan must include a surveyor's certificate for the 29 proposed strata plan of consolidation. 30 (4) Subsection (5) applies in relation to the consolidation of lots if the owners 31 corporation of the strata scheme: 32 (a) agrees to the consolidation by special resolution, and 33 (b) signs the proposed strata plan of consolidation. 34 (5) Any common property in a wall, floor or ceiling that is a boundary between any of 35 the lots being consolidated ceases to be common property and vests in the owner of 36 the consolidated lot on registration of the plan as a strata plan of consolidation. 37 16 Effect of registration of strata plan of subdivision or consolidation for leasehold 38 strata scheme 39 (1) On the registration of a plan as a strata plan of subdivision or strata plan of 40 consolidation for a leasehold strata scheme: 41 (a) a lease of a development lot, or other lot the subject of the subdivision or 42 consolidation, is determined (each a determined lease), and 43 Page 12 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (b) a lease of common property ceases to apply to a lot created by the subdivision 1 or consolidation, and 2 (c) any estate, interest or a caveat affecting a determined lease affects the 3 replacement leases accompanying the plan to the extent they relate to lots, and 4 (d) the leasehold estate in any common property created vests in the owners 5 corporation as lessee for the remainder of the term of the lease of the common 6 property, and 7 (e) all rights and obligations of the lessee, under a determined lease, existing 8 immediately before the registration continue to be exercisable, or may be 9 discharged, by the lessee as if the lease had not been determined, other than to 10 the extent that the rights and obligations are: 11 (i) inconsistent with the provisions of a replacement lease, or 12 (ii) extinguished or varied by the relevant parties. 13 (2) A plan that, under this Act, is lodged for registration as a strata plan of subdivision 14 for a leasehold strata scheme and is required to be accompanied by a lease or leases 15 to be registered under the Real Property Act 1900 is taken to have been registered 16 only when the lease or leases are registered under that Act. 17 Division 3 Notices of conversion 18 17 Conversion of lots into common property 19 (1) One or more lots in a strata scheme may be converted into common property by the 20 registration of a notice as a notice of conversion, if the owners corporation, by special 21 resolution, authorises the proposed conversion. 22 (2) The notice must: 23 (a) be in the approved form, and 24 (b) be signed by: 25 (i) the owners corporation, and 26 (ii) the owner of the lot or lots to be converted, and 27 (iii) if the notice is for a leasehold strata scheme--the lessor of the strata 28 scheme, and 29 (c) be accompanied by a strata certificate for the notice of conversion. 30 Note. Subsection (2) (c) does not apply to a notice lodged by the Crown. See section 199 (2). 31 (3) However, if part or all of the land to be converted is held by the original owner, the 32 notice must not be registered unless: 33 (a) the initial period has expired, or 34 (b) the original owner owns all lots in the strata scheme, or 35 (c) an order has been made under section 27 of the Strata Schemes Management 36 Act 2015 authorising the registration of the notice. 37 (4) Also, the Registrar-General must not register a notice of conversion unless each 38 mortgage, charge, covenant charge, lease, caveat or writ recorded in the folio for the 39 lot or lots to be converted has been discharged, surrendered, withdrawn or otherwise 40 disposed of. 41 18 Effect of conversion of lots in leasehold strata scheme 42 On the registration of a notice of conversion for a leasehold strata scheme: 43 (a) the lease of a lot converted into common property is determined, and 44 Page 13 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (b) the lot vests in the owners corporation as lessee for the remainder of the term 1 specified in the lease of the common property. 2 Division 4 Building alteration plans 3 19 Alteration of building affecting lot boundary 4 (1) This section applies if a building of a strata scheme is altered: 5 (a) by demolishing a wall, floor, ceiling or common infrastructure, and a 6 boundary of a lot was, immediately before the alteration: 7 (i) the inner surface or any part of the wall, the upper surface or any part of 8 the floor or the under surface or any part of the ceiling, or 9 (ii) defined in terms of or by reference to the wall, floor, ceiling or common 10 infrastructure, or 11 (b) by constructing a wall, floor or ceiling so that a boundary of a lot coincides 12 with the inner surface or any part of the wall, the upper surface or any part of 13 the floor or the under surface or any part of the ceiling. 14 (2) The owner of the lot must, within one month after the demolition or construction is 15 completed, lodge a plan complying with subsection (3) for registration as a building 16 alteration plan. 17 Maximum penalty: 5 penalty units. 18 (3) The plan must: 19 (a) define by lines the base of each vertical boundary of the lot after the alteration 20 of the building, and 21 (b) include an administration sheet. 22 (4) The administration sheet must include: 23 (a) a certificate in the approved form given by a registered land surveyor 24 certifying that: 25 (i) the wall, floor, ceiling or common infrastructure has been demolished 26 or constructed, and 27 (ii) any wall, floor or ceiling referred to in subsection (1) (b) is wholly 28 within the perimeter of the parcel other than to the extent of any 29 encroachment onto a public place or, if any part of the building 30 encroaches on land other than a public place, that an appropriate 31 easement exists, and 32 (b) any other information or document prescribed by the regulations. 33 20 Registrar-General to give plan to local council 34 (1) On the registration of a building alteration plan showing an encroachment onto a 35 public place, the Registrar-General must give a copy of the plan to the local council 36 for the place. 37 (2) The copy may be on a scale that is different from the original plan. 38 Division 5 Additional requirements for registration of plans and notices 39 21 Requirement for certificate of title for common property 40 (1) The Registrar-General may refuse to register a proposed strata plan of subdivision, 41 strata plan of consolidation, notice of conversion or building alteration plan unless it 42 is accompanied by the certificate of title for the common property in the strata 43 scheme. 44 Page 14 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (2) The Registrar-General may waive the requirement for the certificate of title under 1 subsection (1) if: 2 (a) the proposed plan or notice does not affect common property, and 3 (b) within 21 days after written notice served on the owners corporation by the 4 person lodging the plan or notice, the certificate of title has not been lodged or 5 an application under section 111 of the Real Property Act 1900 for a new 6 certificate of title has not been made. 7 22 Plans to be signed or consented to 8 (1) The Registrar-General must not register a plan as a strata plan unless it is signed by 9 all of the following: 10 (a) the registered proprietor of the land comprised in the plan, 11 (b) each registered mortgagee, chargee or covenant chargee of the land, 12 (c) if the plan is for a leasehold strata scheme: 13 (i) each lessee under a registered lease of the land or part of it, and 14 (ii) each registered mortgagee or chargee under a mortgage of, or charge 15 affecting, a lease referred to in subparagraph (i). 16 (2) The Registrar-General must not register a plan as a strata plan of subdivision, strata 17 plan of consolidation or building alteration plan unless it is signed by all of the 18 following: 19 (a) the registered owner of the land comprised in the plan, 20 (b) each registered mortgagee, chargee or covenant chargee of the land, 21 (c) if the plan relates to common property--the owners corporation of the strata 22 scheme, 23 (d) if the plan is for a leasehold strata scheme--the lessor of the scheme. 24 (3) Also, the Registrar-General may refuse to register a plan referred to in subsection (1) 25 or (2) unless written consent to its registration is lodged and is signed by each of the 26 following the Registrar-General considers appropriate in the circumstances: 27 (a) the judgment creditor under any writ recorded in a folio for the land, 28 (b) the caveator under a caveat affecting any estate or interest in the land, 29 (c) the registered lessee of the land. 30 (4) Despite subsection (1) or (2), the Registrar-General may, without giving notice to 31 any person, waive the requirement for a person mentioned in the subsections to sign 32 a plan. 33 Division 6 Common property 34 23 Dealing with common property--general 35 Common property may be dealt with only in accordance with this Act and the Strata 36 Schemes Management Act 2015. 37 24 Effect of creation of common property by registration of plans or notices 38 (1) This section applies if common property in a strata scheme is created by registration 39 of a strata plan, strata plan of subdivision or notice of conversion. 40 (2) On registration of the plan or notice, the common property: 41 (a) vests in the owners corporation of the strata scheme, and 42 Page 15 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (b) is freed and discharged from any mortgage, charge, covenant charge, writ or 1 caveat affecting the land, and 2 (c) if the common property is land in a freehold strata scheme--is freed and 3 discharged from any lease affecting the land immediately before registration 4 of the plan or notice, other than a lease that is necessary for the purpose of 5 providing a service to the scheme. 6 (3) The Registrar-General must, on registration of a strata plan, create a folio for the 7 estate or interest of the owners corporation in the common property. 8 (4) Subsection (2) does not affect a right or remedy that may be exercised otherwise than 9 in relation to common property by a person who is a mortgagee, chargee, covenant 10 chargee, lessee, judgment creditor or caveator, even if the person signed or consented 11 to the registration of the plan or signed the notice creating the common property. 12 25 Acquisition of additional common property 13 (1) For the purpose of creating or creating additional common property, the owners 14 corporation of a strata scheme may, by special resolution, accept a lease or sublease, 15 or a transfer of a lease or sublease, of land if: 16 (a) the land is contiguous to the parcel or the owners corporation considers the 17 land is otherwise relevant to the strata scheme (whether or not the land is 18 within the parcel or is contiguous to the parcel), and 19 (b) the land is not subject to a mortgage, charge, covenant charge or writ, and 20 (c) if the strata scheme is a leasehold strata scheme--the term of the lease or 21 sublease does not expire after the term of the lease of the common property. 22 (2) Also, for the purpose of creating or creating additional common property, the owners 23 corporation of a freehold strata scheme may, by special resolution, accept a transfer 24 of land that: 25 (a) is contiguous to the parcel, and 26 (b) is not subject to a mortgage, charge, covenant charge or writ. 27 (3) If the strata scheme forms part of a community scheme, the Registrar-General may 28 refuse to register a transfer of land creating or creating additional common property 29 in the scheme unless the community scheme is appropriately amended by any 30 necessary dealings registered under the Community Land Development Act 1989. 31 (4) In this section: 32 land means land under the Real Property Act 1900 (other than land comprised in a 33 limited folio or qualified folio or a perpetual lease from the Crown), but does not 34 include a leasehold interest in land evidenced by a lease that is not registered under 35 that Act. 36 26 Registration and effect of dealings 37 (1) As soon as practicable after accepting a dealing under section 25, the owners 38 corporation must lodge the dealing evidencing the transaction for registration under 39 the Real Property Act 1900. 40 (2) The dealing must be accompanied by: 41 (a) the certificate of title for the land the subject of the dealing, and 42 (b) the certificate of title for the common property, and 43 (c) a certificate under the seal of the owners corporation certifying that it 44 authorised the dealing by special resolution. 45 Page 16 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (3) If the dealing is a transfer of land, it may be registered only if a plan showing the 1 transferred land and the original parcel as a single lot is registered under the 2 Conveyancing Act 1919. 3 (4) On the registration of an accepted lease or sublease, the leasehold interest becomes 4 common property. 5 (5) On the registration of a transfer of land, the land becomes common property. 6 27 Surrender of lease or sublease of common property 7 An owners corporation may, by special resolution and with the lessor's or sublessor's 8 agreement, surrender an accepted lease or sublease. 9 28 Holding common property and dealing with lots and common property 10 (1) The owners corporation of a strata scheme holds the common property in the scheme 11 as agent for the owners as tenants in common in shares proportional to the unit 12 entitlement of the owners' lots. 13 (2) An owner's interest in the common property cannot be severed from, or dealt with 14 separately from, the owner's lot. 15 (3) A dealing or caveat relating to an owner's lot affects the owner's interest in the 16 common property even if the common property is not expressly referred to in the 17 dealing or caveat. 18 29 Requirement for folio if no common property 19 (1) If a strata plan that does not contain common property is registered, the 20 Registrar-General must create a folio and record in it in the way the 21 Registrar-General considers appropriate: 22 (a) a statement that the strata scheme does not contain common property, and 23 (b) the name of the owners corporation and the address for service of notices on 24 it, and 25 (c) the schedule of unit entitlement for the scheme, and 26 (d) particulars of the by-laws specified in the strata plan for the scheme. 27 (2) During any period in which a folio created under subsection (1) or section 24 (3) does 28 not contain common property, the Registrar-General must record in the folio: 29 (a) any change in the address for service of notices on the owners corporation, 30 notice of which has been lodged under section 265 of the Strata Schemes 31 Management Act 2015, and 32 (b) any change in the by-laws for the strata scheme, notification of which has been 33 lodged under section 141 of the Strata Schemes Management Act 2015, and 34 (c) any other matter that, by or under this Act or any other Act, the 35 Registrar-General is required or authorised to make in the folio. 36 30 References to folios and certificates of title 37 (1) A reference in this Act to a folio includes a reference to a folio created under 38 section 24 (3) or 29 (1) during any period in which it does not contain common 39 property. 40 (2) A reference in this Act to a certificate of title includes a reference to a certificate of 41 title in relation to a folio referred to in subsection (1). 42 Page 17 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (3) To the extent a provision of the Real Property Act 1900 can apply to a folio or 1 certificate of title referred to in subsection (1) or (2), a reference in the provision: 2 (a) to a folio includes a reference to a folio referred to in subsection (1) during any 3 period for which it does not contain common property, or 4 (b) to a certificate of title includes a reference to a certificate of title in relation to 5 a folio referred to in subsection (1). 6 31 Requirement for folio if there is common property 7 (1) In a folio for common property, it is sufficient that the land comprised in the common 8 property is described as the common property in a designated strata plan without 9 defining its area or dimensions. 10 (2) A folio for common property is taken to certify title to the common property, other 11 than common property the subject of an accepted lease or sublease, in the strata 12 scheme as the common property may exist from time to time. 13 (3) The Registrar-General must, in the way the Registrar-General considers appropriate, 14 record the following in a folio for common property in a strata scheme: 15 (a) the name of the owners corporation, 16 (b) the address for service of notices on the owners corporation, 17 (c) the schedule of unit entitlement for the scheme, 18 (d) any easement benefiting or burdening the parcel and any restriction on the use 19 of land or positive covenant burdening the parcel, 20 (e) particulars of the by-laws specified in the strata plan for the scheme, and any 21 change in the by-laws, notification of which has been lodged under section 141 22 of the Strata Schemes Management Act 2015, 23 (f) any other matter that, by or under this Act or another Act, the 24 Registrar-General is required or authorised to make in the folio. 25 32 Recording particular matters relating to common property 26 (1) The Registrar-General must not record the following in the folio for a lot in a strata 27 scheme: 28 (a) an easement that burdens the common property in the scheme or benefits the 29 common property or the whole parcel, 30 (b) an easement acquired by resumption, to the extent that it affects common 31 property, 32 (c) a restriction on the use of land or a positive covenant that burdens the common 33 property or the whole parcel. 34 (2) The Registrar-General must record an easement, restriction or positive covenant 35 referred to in subsection (1) in the folio for the common property in the strata scheme. 36 (3) However, the easement, restriction or positive covenant affects a lot in the strata 37 scheme: 38 (a) to the extent that it can affect the lot, and 39 (b) as if it were recorded in the folio for the lot. 40 (4) The Registrar-General must not record a mortgage, charge, covenant charge or writ 41 in the folio for the common property in a strata scheme. 42 Page 18 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes 33 Transfer or lease of common property 1 (1) The owners corporation of a freehold strata scheme may: 2 (a) by special resolution, transfer or lease common property, other than common 3 property the subject of an accepted lease or sublease, and 4 (b) by special resolution, and if not prevented by the terms of the lease or sublease, 5 transfer an accepted lease or sublease of common property or grant a sublease 6 of that lease or sublease, and 7 (c) by special resolution, and in accordance with section 55A of the Real Property 8 Act 1900, execute a variation of a lease or sublease granted or transferred 9 under paragraph (a) or (b). 10 (2) The owners corporation of a leasehold strata scheme may: 11 (a) by special resolution, and with the lessor's consent and if not prevented by the 12 terms of the lease, transfer a lease of part of the common property or grant a 13 sublease of the part, and 14 (b) by special resolution, and with the lessor's consent, execute a variation of a 15 lease or sublease referred to in paragraph (a) in accordance with section 55A 16 of the Real Property Act 1900. 17 (3) The owners corporation of any strata scheme may, by special resolution: 18 (a) accept a surrender of a lease or sublease granted under this section, or 19 (b) re-enter the lease or sublease, if otherwise authorised. 20 (4) If the strata scheme forms part of a community scheme, the Registrar-General may 21 refuse to register a transfer of common property unless the community scheme is 22 appropriately amended by any necessary dealings registered under the Community 23 Land Development Act 1989. 24 34 Creation or variation of easements, restrictions and positive covenants 25 (1) The owners corporation of a strata scheme may, by special resolution: 26 (a) execute a dealing creating or varying an easement that burdens the common 27 property in the scheme, or a restriction on the use of land or a positive covenant 28 that burdens the common property or the whole parcel, or 29 (b) execute a dealing releasing or varying an easement, a restriction on the use of 30 land or a positive covenant that benefits the common property or the whole 31 parcel. 32 (2) The owners corporation of a strata scheme may, by ordinary resolution: 33 (a) accept a dealing creating an easement, a restriction on the use of land or a 34 positive covenant that benefits the common property in the scheme or the 35 whole parcel, or 36 (b) accept a dealing releasing an easement that burdens the common property, or 37 a restriction on the use of land or a positive covenant that burdens the common 38 property or the whole parcel. 39 35 Dedication of common property 40 (1) The owners corporation of a strata scheme may, by special resolution, dedicate 41 common property in the scheme as a public road, public reserve or drainage reserve 42 by registration of a plan under Division 3 of Part 23 of the Conveyancing Act 1919. 43 (2) However, common property may be dedicated as public reserve only if there is an 44 adjoining public road or other public place giving access to the reserve by the public. 45 Page 19 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes (3) Also, common property in a leasehold strata scheme may be dedicated under this 1 section only with the consent of the lessor of the scheme. 2 (4) If the strata scheme forms part of a community scheme, the Registrar-General may 3 refuse to register a plan referred to in subsection (1) unless the community scheme is 4 appropriately amended by any necessary dealings registered under the Community 5 Land Development Act 1989. 6 36 Restrictions on dealings under this Division 7 (1) An owners corporation of a strata scheme must not execute a dealing for the purposes 8 of this Division that disposes of common property in the scheme unless: 9 (a) any common property rights by-law that relates to the common property being 10 disposed of has been repealed or amended so it does not relate to the common 11 property, and 12 (b) each registered interest in the common property being disposed of has been 13 released or the dealing has been made subject to the interest, and 14 (c) each statutory interest, or other interest that is not registered, in the common 15 property being disposed of and of which the owners corporation has been 16 notified has been released. 17 (2) A dealing lodged for registration under the Real Property Act 1900 or the 18 Conveyancing Act 1919 for the purposes of this Division must not be registered 19 unless it is accompanied by a certificate under the seal of the owners corporation 20 certifying that: 21 (a) the resolution authorising the dealing was a special resolution or ordinary 22 resolution (as required under this Division), and 23 (b) the resolution was passed after the expiration of the initial period, and 24 (c) subsection (1) (c) has been complied with. 25 (3) Subsection (2) (b) does not apply to a dealing if: 26 (a) the original owner owns all lots in the strata scheme, or 27 (b) an order has been made under section 27 of the Strata Schemes Management 28 Act 2015 authorising the registration of the dealing. 29 (4) The certificate is conclusive evidence of the facts stated in the certificate in favour of 30 the Registrar-General and any person taking under the dealing or benefiting by the 31 registration of the dealing. 32 (5) This section does not prevent: 33 (a) the execution in accordance with section 87 of a dealing by an owners 34 corporation, or by a developer on behalf of the owners corporation, to give 35 effect to a decision about a development concern, or 36 (b) the registration of a dealing referred to in paragraph (a). 37 37 Effect of dealings under this Division 38 (1) A dealing executed by an owners corporation for the purposes of this Division is as 39 valid and effective as it would be if it were also executed by the owners of all the lots 40 in the strata scheme. 41 (2) The receipt of the owners corporation for an amount payable to it in relation to a 42 dealing is a sufficient discharge for the payment and exonerates each person paying 43 the amount from any responsibility for its application. 44 Page 20 Strata Schemes Development Bill 2015 [NSW] Part 2 Creation of lots and common property in strata schemes Division 7 Miscellaneous 1 38 Application of certain provisions of Conveyancing Act 1919 2 (1) Section 88B of the Conveyancing Act 1919 applies to a strata plan, strata plan of 3 subdivision and strata plan of consolidation in the same way it applies to a plan 4 referred to in that section relating to land under the Real Property Act 1900. 5 (2) Sections 195F, 195H, 195J, 196 and 196AA of the Conveyancing Act 1919 apply in 6 relation to a plan lodged for registration as a strata plan, strata plan of subdivision, 7 strata plan of consolidation or building alteration plan in the same way the sections 8 apply to plans referred to in the sections. 9 39 Encroachments shown on plans 10 (1) If an encroachment is shown on a proposed strata plan, strata plan of subdivision or 11 building alteration plan, this Act applies to the encroachment: 12 (a) to the extent it is designated for use with a lot--as if it were part of the lot, or 13 (b) otherwise--as if it were common property. 14 (2) However, this section does not apply to a provision of this Act relating to ownership 15 and certification of title. 16 40 When by-laws for strata scheme have effect 17 (1) The proposed by-laws for a strata scheme have no effect until the strata plan and any 18 proposed by-laws that are required to accompany it are registered. 19 (2) However, registration does not give effect to by-laws that have not been lawfully 20 made. 21 Page 21 Strata Schemes Development Bill 2015 [NSW] Part 3 Provisions relating to leases in leasehold strata schemes Part 3 Provisions relating to leases in leasehold strata 1 schemes 2 Division 1 Leases of lots and common property 3 41 Provisions generally applicable to leases 4 (1) The provisions of the Conveyancing Act 1919 relating to leases of land apply to a 5 lease of a lot or common property in a leasehold strata scheme other than to the extent 6 the provisions are inconsistent with this Act or the regulations. 7 (2) The lessor of a leasehold strata scheme may be the owner of any lot in the scheme 8 despite any law relating to the merger of leasehold and reversionary estates in land. 9 42 Dealings in lease of lot or common property 10 Except as expressly provided by Division 6 of Part 2, a provision in the lease of a lot 11 or common property in a leasehold strata scheme that purports to require the consent 12 of the lessor of the scheme to any dealing with the lease is void. 13 43 Powers of lessor if no current lease 14 (1) For the purposes of this Act, a lessor of a leasehold strata scheme who is entitled to 15 immediate possession of a lot in the scheme because of the determination of a lease 16 is taken to be the owner of the lot. 17 (2) Subsection (1) does not confer or impose on the lessor a right or obligation created 18 by a lease, sublease, mortgage, charge or covenant charge to which a former owner 19 was subject. 20 44 Further leases of lots and common property 21 (1) Subject to subsection (4) and section 122 of the Conveyancing Act 1919, the lessor 22 of a leasehold strata scheme may grant further leases of a lot in the scheme, including 23 a further lease to the lessor, at any time before the scheme is terminated. 24 (2) If a lease is granted under subsection (1) to commence when the lease of the common 25 property expires, the lessor must also grant a further lease of the common property 26 to the owners corporation. 27 (3) Subsection (4) applies if, in relation to a leasehold strata scheme: 28 (a) the owners of lots the sum of whose unit entitlements is at least four-fifths of 29 the aggregate unit entitlement and the owners corporation have, at least 30 6 months before the expiration of the terms of the leases, given written notice 31 in accordance with subsection (5) to the lessor of their intention to exercise 32 their rights to renew their leases, and 33 (b) the right to a further lease containing specified provisions has been granted, in 34 writing signed by the lessor, to the owners and owners corporation by the 35 lessor. 36 (4) The lessor must, at least 3 months before the terms of the leases expire, grant: 37 (a) further leases of the lots to the owners, and 38 (b) a further lease of the common property to the owners corporation. 39 Note. However, see section 45 for when a lessor may refuse to grant a further lease. 40 (5) The notice referred to in subsection (3) (a) must be accompanied by a lease, for 41 execution by the lessor, in the approved form and contain the specified provisions 42 referred to in subsection (3) (b). 43 Page 22 Strata Schemes Development Bill 2015 [NSW] Part 3 Provisions relating to leases in leasehold strata schemes (6) The terms of all leases granted under this section in relation to a parcel, other than a 1 further lease that commences during the term of another lease of the lot or the 2 common property and that is expressed to expire at the same time as the other lease, 3 must: 4 (a) commence at the expiration of the terms of the leases they are intended to 5 replace, and 6 (b) expire at the same time. 7 (7) If a lease granted under this section confers on the owner a right of renewal, the 8 renewal term must be the same as that to which each other owner of a lot in the strata 9 scheme is entitled. 10 (8) The lessor of the strata scheme may execute a further lease of common property in 11 the scheme as agent for the owners corporation, unless the lease is granted under 12 subsection (4). 13 (9) A right to a further lease of a lot or common property may not be exercised otherwise 14 than in accordance with this section. 15 45 Lessor may refuse to grant further leases 16 (1) The lessor of a leasehold strata scheme may refuse to grant a further lease of a lot to 17 an owner if: 18 (a) the owner has breached a provision of the lease of the lot and the breach has 19 not been remedied, or 20 (b) the owner has not complied with a provision of the lease for the renovation of 21 improvements comprised in the lot. 22 (2) The lessor of a leasehold strata scheme may refuse to grant a further lease of the 23 common property to the owners corporation if: 24 (a) the owners corporation has breached a provision of the lease of the common 25 property and the breach has not been remedied, or 26 (b) the owners corporation has not complied with a provision of the lease for the 27 renovation of improvements comprising common property. 28 (3) If a lessor refuses to grant a further lease of the common property in a leasehold strata 29 scheme, the lessor must also refuse to grant further leases of lots in the scheme. 30 (4) This section applies despite section 44 (4). 31 Division 2 Re-entry or forfeiture of leases of lots 32 46 Restriction on re-entry or forfeiture 33 (1) This section applies: 34 (a) if the lease of a lot in a leasehold strata scheme is subject to a registered 35 mortgage, charge or covenant charge, and 36 (b) despite section 129 (6) of the Conveyancing Act 1919. 37 (2) A right of re-entry or forfeiture under the lease for a breach of a covenant, condition 38 or agreement (express or implied) in the lease may not be exercised unless the lessor 39 has served on the mortgagee, chargee or covenant chargee a copy of the notice 40 relating to the breach served on the owner under section 129 of the Conveyancing Act 41 1919. 42 Page 23 Strata Schemes Development Bill 2015 [NSW] Part 3 Provisions relating to leases in leasehold strata schemes 47 Order about re-entry or forfeiture 1 (1) If a lessor has brought legal proceedings to enforce a right of re-entry or forfeiture 2 under a lease of a lot in a leasehold strata scheme, the Supreme Court may, on 3 application by a mortgagee, chargee or covenant chargee of the lot make an order: 4 (a) staying the proceedings on the terms the Supreme Court considers just and 5 equitable, and 6 (b) vesting, for the remaining term of the lease or a shorter term, the lease of the 7 lot in the mortgagee, chargee or covenant chargee on the conditions the court 8 considers just and equitable, including, for example, conditions relating to: 9 (i) the execution of a dealing or other document, or 10 (ii) the payment of rent, or 11 (iii) costs, expenses, damages or compensation, or 12 (iv) the giving of a security. 13 (2) The order may be made: 14 (a) in proceedings brought for the purpose by the mortgagee, chargee or covenant 15 chargee, or 16 (b) in the proceedings brought by the lessor that are already in the Supreme Court. 17 Division 3 Conversion of leasehold strata schemes to freehold strata 18 schemes 19 48 Procedure for conversion 20 (1) If: 21 (a) under the leases of the lots in a leasehold strata scheme, the owners have rights 22 to acquire the lessor's reversion in the lots, or 23 (b) the lessor otherwise confers on the owners rights to acquire the lessor's 24 reversion in the lots, 25 the owners corporation may, by special resolution at a meeting convened to 26 determine whether the rights are to be exercised and held before the scheme is 27 terminated under section 148 or otherwise, authorise the conversion of the scheme 28 into a freehold strata scheme. 29 Note. Under section 148, a leasehold strata scheme may be terminated if all leases of lots 30 and common property in the scheme expire or are otherwise determined. 31 (2) The rights referred to in subsection (1) may not be exercised unless a special 32 resolution is passed in accordance with the subsection. 33 (3) If the special resolution is passed, each owner may exercise the right to acquire from 34 the lessor the reversion in the owner's lot. 35 (4) Despite section 25, if an owner has not, within 6 weeks after the date of the meeting, 36 acquired the reversion in the owner's lot, the owners corporation may, by unanimous 37 resolution, acquire the reversion in and the lease of the lot. 38 (5) If the reversion in a lot has not, within 3 months after the date of the meeting, been 39 acquired by the owner of the lot or the owners corporation, the lessor may acquire the 40 lease of the lot. 41 (6) If there is no outstanding reversion in a lot in the leasehold strata scheme, the lessor 42 must immediately give the Registrar-General notice in the approved form of: 43 (a) the passing of the special resolution authorising the conversion of the scheme, 44 and 45 (b) the disposal of the reversionary estates in all lots in the scheme. 46 Page 24 Strata Schemes Development Bill 2015 [NSW] Part 3 Provisions relating to leases in leasehold strata schemes (7) If the reversion in any lot has not, within 6 months after the date of the meeting, been 1 disposed of in accordance with this section, the lessor must give the 2 Registrar-General notice in the approved form of: 3 (a) the passing of the special resolution authorising the conversion of the scheme, 4 and 5 (b) the disposal of the reversionary estates in the lots the reversion in which has 6 been acquired or the leases of which have been acquired in accordance with 7 this section, and 8 (c) the identity of each lot the reversion in which, or lease of which, has not been 9 acquired. 10 (8) A notice required to be given under this section by the lessor may be given by the 11 owners corporation, an owner or another person. 12 49 Effect of merger of leasehold estate with lessor's reversion 13 (1) This section applies if the Registrar-General receives a notice given under section 48 14 and an application in the approved form before the leasehold strata scheme to which 15 the notice and application relate is terminated. 16 (2) The Registrar-General must, if satisfied that the application has been properly made, 17 record in the Register the matters the Registrar-General considers appropriate to 18 effect the merger of the leasehold and reversionary estates. 19 (3) When the Registrar-General makes the record: 20 (a) the leasehold strata scheme becomes a freehold strata scheme, and 21 (b) the strata plan for the leasehold strata scheme becomes a strata plan for the 22 freehold strata scheme, and 23 (c) subject to paragraph (e), each former lot in the leasehold strata scheme vests 24 in the former owner of the lot for an estate in fee simple, and 25 (d) the former common property in the leasehold strata scheme, other than 26 common property under an accepted lease or sublease, vests in the owners 27 corporation for an estate in fee simple, and 28 (e) the fee simple estate in a lot in relation to which a merger has not been 29 recorded in the Register is held subject to the former lease of the lot, and 30 (f) a registered mortgage, charge, covenant charge, easement, restriction on the 31 use of land or positive covenant conferring or imposing rights or obligations 32 in relation to the former leases of lots or the former lots confers or imposes 33 equivalent rights or obligations in relation to the lots created, and 34 (g) a registered easement, restriction on the use of land or positive covenant 35 conferring or imposing rights or obligations in relation to the former common 36 property confers or imposes equivalent rights or obligations in relation to the 37 common property created, and 38 (h) subject to paragraph (e), the former leases of each former lot and the former 39 lease of the former common property are determined. 40 Page 25 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates Part 4 Strata certificates 1 Division 1 Preliminary 2 50 Definitions 3 In this Part: 4 certificate of compliance of a water supply authority means a certificate of 5 compliance issued by the authority in accordance with the Act under which it is 6 constituted. 7 court means the Land and Environment Court. 8 order, requirement or notice means an order, requirement or notice of a kind referred 9 to in, or given under, any of the following: 10 (a) an order of the kind referred to in item 2, 4, 8 or 9 of the table to section 121B 11 of the Environmental Planning and Assessment Act 1979, 12 (b) an order of the kind referred to in item 21, 22, 23, 24 or 25 of the table to 13 section 124 of the Local Government Act 1993, 14 (c) provisions of regulations made under the Environmental Planning and 15 Assessment Act 1979 or the Local Government Act 1993 that are prescribed for 16 the purposes of this definition. 17 51 Relationship with other Acts 18 (1) Subject to this Act, a provision of the Conveyancing Act 1919, the Environmental 19 Planning and Assessment Act 1979 or another Act relating to the way land is divided 20 does not apply to a subdivision effected under Part 2. 21 (2) This section does not affect a requirement to obtain planning approval for a 22 subdivision. 23 52 When relevant planning approval is in force 24 (1) For the purposes of this Act, a relevant planning approval is in force for a proposed 25 strata plan or strata plan of subdivision if: 26 (a) planning approval is required, and has been granted, for the subdivision the 27 subject of the proposed plan and has not lapsed, or 28 (b) planning approval under paragraph (a) is not required but planning approval is 29 required for the building, and has been granted for building work in relation to 30 a building, or a change of use of a building, having proposed lots designed for 31 separate occupation as illustrated by the plan, and has not lapsed. 32 (2) For the purposes of this Act, a relevant planning approval is in force for a notice of 33 conversion if: 34 (a) planning approval is required, and has been granted, to the conversion the 35 subject of the notice and has not lapsed, or 36 (b) planning approval under paragraph (a) is not required but planning approval is 37 required, and has been granted, for building work or a change of use associated 38 with the conversion and has not lapsed. 39 53 Who may apply for strata certificate 40 An application for a strata certificate may be made only by: 41 (a) if the certificate relates to a strata plan--the registered proprietor of the land 42 to which the application relates, or another person with the proprietor's written 43 consent, or 44 Page 26 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (b) if the certificate relates to a strata plan of subdivision or notice of conversion-- 1 the registered owner of the land to which the application relates, or another 2 person with the owner's written consent. 3 Division 2 Issue of strata certificates by local councils 4 54 Strata certificate for strata plans and subdivision of development lots 5 (1) A local council must, on application made to it for a strata certificate in relation to a 6 proposed strata plan that does not include a development lot, issue a strata certificate 7 for the plan if: 8 (a) for land proposed to be subdivided that is within a water supply authority's 9 area of operations--the water supply authority has issued a certificate of 10 compliance for the proposed subdivision, and 11 (b) the following requirements of subparagraphs (i)-(iii) or the following 12 requirements of subparagraphs (iv)-(viii) are satisfied: 13 (i) a construction certificate has been issued under the Environmental 14 Planning and Assessment Act 1979 in relation to the erection of each 15 building containing a proposed lot to which the plan relates, 16 (ii) each proposed lot in the plan substantially corresponds with a part of 17 any such building shown in the building plans accompanying the 18 construction certificate and is designated in the building plans as being 19 intended for separate occupation, 20 (iii) each building referred to in subparagraph (i) was completed not more 21 than 12 months, or a longer period fixed by the local council in any 22 particular case, before the application for the strata certificate was 23 made, 24 (iv) separate occupation of the proposed lots in the plan will not contravene 25 the Environmental Planning and Assessment Act 1979 or an 26 environmental planning instrument, 27 (v) any consent required under that Act or instrument has been given in 28 relation to the separate occupation of the proposed lots, 29 (vi) having regard to the circumstances of the case and the public interest, 30 the local council is satisfied that the subdivision to which the plan 31 relates will not interfere with the existing or likely future amenity of the 32 neighbourhood, 33 (vii) the land proposed to be subdivided is not the subject of an outstanding 34 order, requirement or notice, 35 (viii) if an order of the kind referred to in item 6 of the table to section 121B 36 of the Environmental Planning and Assessment Act 1979 is in force in 37 relation to the land proposed to be subdivided--the order has been 38 complied with. 39 (2) A local council must, on application made to it for a strata certificate in relation to a 40 proposed strata plan that includes a development lot, or of a proposed strata plan of 41 subdivision of a development lot, issue a strata certificate for the plan if: 42 (a) the requirements of subsection (1) (a) and (b) are satisfied, and 43 (b) the plan and each building to which the plan relates: 44 (i) satisfy the conditions of any planning approval relating to the plan and 45 building, and 46 (ii) give effect to the stage of the strata development contract to which the 47 plan and building relate. 48 Page 27 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (3) However, for the purposes of subsections (1) (b) and (2) (a), if there is a relevant 1 planning approval in force in relation to the proposed subdivision, the local council 2 need not consider the requirement specified in subsection (1) (b) (vi). 3 (4) Subsections (1) and (2) apply subject to this Part. 4 55 Strata certificate for subdivision not involving development lot 5 (1) A local council must, on application made to it for a strata certificate in relation to a 6 proposed strata plan of subdivision (other than a subdivision of a development lot) 7 that does not subdivide or create common property in a strata scheme, send notice of 8 the proposed subdivision by registered post to the owners corporation. 9 (2) The notice must invite the owners corporation to give its views on the proposed 10 subdivision within the period, of not less than 21 days after the notice was sent, 11 specified in the notice (the specified period). 12 (3) Subsection (1) does not apply to a local council if the application was accompanied 13 by a certificate under the seal of the owners corporation certifying that the owners 14 corporation has, by resolution, agreed to the proposed subdivision. 15 (4) A local council may issue the strata certificate after considering: 16 (a) if the local council sent a notice referred to in subsection (1)--the 17 representations, if any, made to it by the owners corporation within the 18 specified period and whether the proposed subdivision would be likely: 19 (i) to detract from the external appearance of the building containing the lot 20 the subject of the proposed subdivision, or 21 (ii) to render inadequate existing services to other lots in the strata scheme, 22 or 23 (iii) to detract from the amenity or value of any other lot in the strata scheme 24 by increasing the number and decreasing the size of lots within the 25 building referred to in subparagraph (i), and 26 (b) if paragraph (a) does not apply in relation to the application--the requirements 27 of section 54 (1) (b) (iv)-(vi) as if the reference in that section to a proposed 28 strata plan were a reference to the proposed strata plan of subdivision. 29 (5) A local council may, on application made to it for a strata certificate in relation to a 30 proposed strata plan of subdivision (other than a subdivision of a development lot) 31 that subdivides or creates common property, issue the certificate: 32 (a) if the plan, on lodgment with the council, was accompanied by a certificate 33 under the seal of the owners corporation certifying that it has, by special 34 resolution, agreed to the proposed subdivision, and 35 (b) after taking into consideration the requirements of section 54 (1) (b) (iv)-(vi) 36 as if the reference in that section to a proposed strata plan were a reference to 37 the proposed strata plan of subdivision. 38 (6) However, if a relevant planning approval is in force in relation to the proposed 39 subdivision, the local council need not consider: 40 (a) for the purposes of subsection (4)--the matters referred to in subsection (4) (a) 41 or a requirement specified in section 54 (1) (b) (vi), and 42 (b) for the purposes of subsection (5)--a requirement specified in 43 section 54 (1) (b) (vi). 44 56 Strata certificate for notices of conversion 45 (1) A local council may, on application made to it for a strata certificate in relation to a 46 proposed notice of conversion, issue the certificate if: 47 Page 28 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (a) the notice, on lodgment with the council, was accompanied by a certificate 1 under the seal of the owners corporation certifying that it has, by special 2 resolution, agreed to the proposed conversion, and 3 (b) the council is satisfied, having regard to the circumstances of the case and the 4 public interest, that the proposed conversion will not interfere with the existing 5 or likely future amenity of the neighbourhood. 6 (2) However, the council need not be satisfied about the matter referred to in 7 subsection (1) (b) if a relevant planning approval is in force in relation to the notice 8 of conversion. 9 57 Restriction on issue of strata certificate 10 (1) A local council must not issue a strata certificate unless: 11 (a) it complies with the regulations relating to the issue of strata certificates by a 12 local council, and 13 (b) it is satisfied that any inspections prescribed by the regulations have been 14 carried out. 15 (2) Also, a local council must not issue a strata certificate in relation to a proposed strata 16 plan, strata plan of subdivision or notice of conversion for which a relevant planning 17 approval is not in force or is not required unless it has considered: 18 (a) whether the following will be appropriate to the proposed use of the building 19 the subject of the plan or notice: 20 (i) the structural strength and load-bearing capacity of the building, 21 (ii) the measures to protect persons using the building, and to facilitate their 22 egress from the building, in the event of fire, 23 (iii) the measures to restrict the spread of fire from the building to other 24 buildings nearby, and 25 (b) whether the building complies, or will comply when completed, with the 26 Category 1 fire safety provisions applicable to the building's proposed use. 27 (3) This section applies despite any other provision of this Division. 28 (4) In subsection (2), Category 1 fire safety provisions means the provisions prescribed 29 by the regulations. 30 Division 3 Issue of strata certificates by accredited certifiers 31 58 Strata certificate for strata plans and subdivision of development lots 32 (1) An accredited certifier must, on application made to the certifier for a strata 33 certificate in relation to a proposed strata plan that does not include a development 34 lot, issue a strata certificate for the plan if: 35 (a) a relevant planning approval is in force in relation to the plan, and 36 (b) all conditions of the planning approval that are required to be complied with 37 before a strata certificate may be issued have been complied with, and 38 (c) if the land proposed to be subdivided is within a water supply authority's area 39 of operations--the water supply authority has issued a certificate of 40 compliance for the proposed subdivision, and 41 (d) the following requirements of subparagraphs (i)-(iii) or the following 42 requirements of subparagraphs (iv)-(vii) are satisfied: 43 (i) a construction certificate has been issued under the Environmental 44 Planning and Assessment Act 1979 in relation to the erection of each 45 building containing a proposed lot to which the plan relates, 46 Page 29 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (ii) each proposed lot in the plan substantially corresponds with a part of 1 any such building shown in the building plans accompanying the 2 construction certificate and is designated in the building plans as being 3 intended for separate occupation, 4 (iii) each building referred to in subparagraph (i) was completed not more 5 than 12 months, or a longer period fixed by the relevant local council in 6 any particular case, before the application for the strata certificate was 7 made, 8 (iv) separate occupation of the proposed lots in the plan will not contravene 9 the Environmental Planning and Assessment Act 1979 or an 10 environmental planning instrument, 11 (v) any consent required under that Act or instrument has been given in 12 relation to the separate occupation of the proposed lots, 13 (vi) the land proposed to be subdivided is not the subject of an outstanding 14 order, requirement or notice, 15 (vii) if an order of the kind referred to in item 6 of the table to section 121B 16 of the Environmental Planning and Assessment Act 1979 is in force in 17 relation to the land proposed to be subdivided--the order has been 18 complied with. 19 (2) An accredited certifier must, on application made to the certifier for a strata 20 certificate in relation to a proposed strata plan that includes a development lot or a 21 proposed strata plan of subdivision of a development lot, issue a strata certificate for 22 the plan if: 23 (a) the requirements of subsection (1) (a)-(d) are satisfied, and 24 (b) the plan and each building containing a proposed lot to which the plan relates: 25 (i) satisfy the applicable planning approval conditions, and 26 (ii) give effect to the stage of the strata development contract to which the 27 plan and building relate. 28 59 Strata certificate for subdivision not involving development lot 29 An accredited certifier must, on application made to the certifier for a strata 30 certificate in relation to a proposed strata plan of subdivision (other than a 31 subdivision of a development lot) issue a strata certificate in relation to the plan if: 32 (a) the requirements of section 58 (1) (a), (b) and (d) (iv) and (v) are satisfied, and 33 (b) if the subdivision does not subdivide or create common property in a strata 34 scheme--the owners corporation has certified that it has, by resolution, agreed 35 to the proposed subdivision, and 36 (c) if the subdivision subdivides or creates common property in a strata scheme-- 37 the owners corporation has certified that it has, by special resolution, agreed 38 to the proposed subdivision. 39 60 Strata certificate for notices of conversion 40 An accredited certifier must, on application made to the certifier for a strata 41 certificate in relation to a proposed notice of conversion, issue the certificate if: 42 (a) the requirements of section 58 (1) (a) and (b) are satisfied, and 43 (b) the owners corporation has certified that it has, by special resolution, agreed 44 to the proposed conversion. 45 Page 30 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates 61 Restrictions on issue of strata certificate 1 Despite any other provision of this Division, an accredited certifier must not issue a 2 strata certificate unless: 3 (a) the certifier complies with the regulations relating to the issue of strata 4 certificates by an accredited certifier, and 5 (b) the certifier is satisfied that any inspections prescribed by the regulations have 6 been carried out. 7 Division 4 Strata certificates relating to encroachments onto public 8 places, and to utility lots 9 62 Issue of strata certificates relating to encroachments 10 (1) This section applies to a proposed strata plan or strata plan of subdivision if a 11 building to which the plan relates encroaches on a public place. 12 (2) A local council may refuse to issue a strata certificate for the plan unless: 13 (a) the plan clearly indicates the existence, nature and extent of the encroachment, 14 and 15 (b) the council is satisfied that retention of the encroachment in its existing state 16 will not endanger public safety or unreasonably interfere with the amenity of 17 the neighbourhood. 18 (3) An accredited certifier must refuse to issue a strata certificate for the plan unless: 19 (a) the plan clearly indicates the existence, nature and extent of the encroachment, 20 and 21 (b) either: 22 (i) the building complies with a relevant planning approval in force in 23 relation to the building with the encroachment, or 24 (ii) a relevant planning approval in force in relation to the subdivision the 25 subject of the plan specifies the existence of the encroachment. 26 (4) A strata certificate for the plan issued by a local council must refer to the existence 27 of the encroachment and indicate that the local council does not object to the 28 encroachment. 29 (5) A strata certificate for the plan issued by an accredited certifier must refer to the 30 existence of the encroachment and indicate that: 31 (a) the local council has granted a relevant planning approval that is in force for 32 the building with the encroachment, or 33 (b) the local council has granted a relevant planning approval that is in force for 34 the subdivision the subject of the plan specifying the existence of the 35 encroachment. 36 63 Restriction on use of utility lot 37 (1) If the registration of a plan for which a strata certificate is sought from a local council 38 would result in the creation of a utility lot, the council may impose a condition (a 39 restrictive use condition) on the strata certificate restricting the use of the utility lot 40 to use by an owner or occupier of a lot or proposed lot (other than a utility lot) in the 41 strata scheme to which the plan relates. 42 (2) If: 43 (a) the registration of a plan for which a strata certificate is sought from an 44 accredited certifier would result in the creation of a utility lot, and 45 Page 31 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (b) the relevant planning approval contains a condition (also a restrictive use 1 condition) restricting the use of the utility lot to use by an owner or occupier 2 of a lot or proposed lot (other than a utility lot), 3 the certifier must note the restriction on the strata certificate. 4 (3) A restriction on use imposed or noted under subsection (1) or (2) must: 5 (a) designate each utility lot burdened by the restriction, and 6 (b) describe the restriction by reference to this section. 7 (4) Section 88 of the Conveyancing Act 1919 does not apply to a restriction referred to 8 in subsection (1) or (2). 9 64 Release of restriction on use of utility lot 10 A local council that imposes a restrictive use condition may, on application made by 11 the owner or a registered mortgagee of the utility lot to which the condition relates, 12 execute an instrument in the approved form that provides that the lot is released from 13 the restriction. 14 Note. On the Registrar-General recording the instrument in the Register, the utility lot is 15 released from the restriction. See section 124. 16 Division 5 Notice of decisions and appeals 17 65 Notice of decision 18 (1) A local council or accredited certifier must give notice of the council's or certifier's 19 decision on an application for a strata certificate to the applicant. 20 (2) If a local council refuses to issue a strata certificate, the notice must state: 21 (a) the grounds of refusal, and 22 (b) that the applicant may appeal to the court against the refusal, and 23 (c) the period within which the appeal may be made. 24 (3) If a local council issues a strata certificate subject to a restrictive use condition, the 25 notice must state: 26 (a) that the applicant may appeal to the court against the imposition of the 27 condition, and 28 (b) the period within which the appeal may be made. 29 (4) If an accredited certifier refuses to issue a strata certificate, the notice must state the 30 grounds of refusal. 31 66 Appeal to Land and Environment Court 32 (1) The applicant for an application for a strata certificate made to a local council may 33 appeal to the court against a decision of the council: 34 (a) to refuse the application, or 35 (b) to issue the strata certificate subject to a restrictive use condition. 36 (2) For the purposes of an appeal under this section, a local council is taken to have 37 refused an application if the council does not decide the application within 14 days 38 after: 39 (a) if the application is for a strata certificate referred to in section 54 (1) and, in 40 relation to the application, the council has given notice under that section to an 41 owners corporation--the end of the period specified in the notice within which 42 the owners corporation may give its views on the proposed subdivision to 43 which the certificate relates, or 44 Page 32 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (b) otherwise--the day the council receives the application. 1 (3) An appeal must be made within 12 months after: 2 (a) the day the applicant receives notice of the decision, or 3 (b) if the local council is taken to have refused the application--the day the 4 council is taken to have refused it. 5 (4) However, the court may, if it considers it appropriate in the circumstances, extend the 6 period for making the appeal. 7 (5) A decision of the court on an appeal is taken to be the final decision of the local 8 council and is to be given effect as if it were the decision of the council. 9 Division 6 Application of Building Professionals Act 2005 10 67 Accredited certifiers 11 (1) For the purposes of this Act, an accredited certifier is the holder of a certificate of 12 accreditation as an accredited certifier for the purposes of this Act. 13 (2) The relevant provisions apply with any necessary changes, and any changes 14 prescribed by the regulations, to the following: 15 (a) the accreditation of accredited certifiers for the purposes of this Act, 16 (b) accredited certifiers, 17 (c) the exercise of functions under this Act by accredited certifiers. 18 (3) In this section: 19 relevant provisions means the provisions of Parts 2-5 and Divisions 1, 3 and 4 of 20 Part 6 and Parts 7 and 8 of the Building Professionals Act 2005, and the regulations 21 made under that Act for the purposes of the provisions. 22 68 Insurance of accredited certifiers 23 (1) The relevant provisions apply with any necessary changes, and any changes 24 prescribed by the regulations, to accredited certifiers exercising functions under this 25 Act in the same way that the provisions apply to accredited certifiers exercising the 26 functions of a certifying authority within the meaning of the Environmental Planning 27 and Assessment Act 1979. 28 (2) In this section: 29 relevant provisions means the provisions of Division 2 of Part 6 of the Building 30 Professionals Act 2005, and the regulations made under that Act for the purposes of 31 the provisions. 32 Note. The relevant provisions relate to a requirement to have insurance. 33 Division 7 Miscellaneous 34 69 Satisfaction about compliance with conditions precedent to issue of strata 35 certificates 36 (1) A person who exercises functions under this Act or another Act in reliance on a strata 37 certificate: 38 (a) is entitled to assume that: 39 (i) the certificate was properly issued, and 40 (ii) all conditions precedent to the issue of the certificate have been 41 complied with, and 42 Page 33 Strata Schemes Development Bill 2015 [NSW] Part 4 Strata certificates (iii) all things that are stated in the certificate as existing or having been done 1 do exist or have been done, and 2 (b) is not liable for any loss or damage arising from a matter in relation to which 3 the certificate was issued. 4 (2) This section does not apply to an accredited certifier in relation to a strata certificate 5 issued by the accredited certifier. 6 70 Regulations 7 The regulations may make provision for or with respect to the following matters: 8 (a) applications for and the issue of strata certificates, 9 (b) the matters to be notified by accredited certifiers to local councils in relation 10 to strata certificates, 11 (c) the inspections to be carried out by local councils and accredited certifiers in 12 relation to the issue of strata certificates, 13 (d) the records to be kept by local councils and accredited certifiers in relation to 14 strata certificates issued, or refused, by local councils and accredited certifiers. 15 Page 34 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development Part 5 Staged development 1 Division 1 Preliminary 2 71 Purpose and scope of Part 3 (1) The purpose of this Part is to facilitate the development in stages of a parcel subject 4 to a strata scheme. 5 (2) This Part does not prevent the development of a parcel otherwise than in accordance 6 with the Part. 7 72 Definitions 8 In this Part: 9 court means the Land and Environment Court. 10 development concern--see section 74. 11 permitted development--see section 73 (4). 12 warranted development--see section 73 (3) (a). 13 73 Explanation of staged development 14 (1) The proposed development in stages of a parcel subject to a strata scheme consists of: 15 (a) the progressive improvement of the parcel by the construction of buildings or 16 the carrying out of works on development lots, and 17 (b) the subsequent subdivision of each development lot and the consequential 18 adjustment of the unit entitlement of lots in the scheme. 19 (2) A development lot may be situated wholly or partly above, below or alongside the 20 building to which the strata scheme initially relates, but must be identified as a 21 development lot in the strata plan for the scheme when the plan is registered or in a 22 strata plan of subdivision of a development lot. 23 (3) The development is carried out subject to a strata development contract that describes 24 separately: 25 (a) any proposed development that the developer for the development lot warrants 26 will be carried out and may be compelled to carry out (warranted 27 development), and 28 (b) any other proposed development that the developer will be authorised but 29 cannot be compelled to carry out (authorised proposals). 30 (4) Warranted development and authorised proposals are referred to as permitted 31 development because the owners corporation of the strata scheme and other persons 32 having estates or interests in lots included in the parcel must allow it to be carried out 33 in accordance with the strata development contract. 34 74 Meaning of "development concern" 35 (1) A development concern, in relation to a strata development contract, is: 36 (a) doing any of the following in accordance with the contract: 37 (i) erecting structures, carrying out works or effecting other improvements, 38 (ii) creating easements, dedicating land, making by-laws or entering into 39 covenants or management or other agreements, 40 (iii) creating or using common property, 41 (iv) adding land to the parcel, 42 Page 35 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development (v) using water, sewerage, drainage, gas, electricity, oil, garbage, 1 conditioned air, telephone or other services available to the parcel, or 2 installing additional services, 3 (vi) providing and using means of access or egress to or from a development 4 lot, or to or from common property, 5 (vii) subdivision of a development lot, or excising a development lot from 6 the parcel, and 7 (b) carrying out any other development that is permitted to be carried out because 8 it is included in the contract. 9 (2) However, a development concern does not include: 10 (a) subdivision of common property, or 11 (b) amendment of a strata development contract, regardless of whether the 12 subject-matter involved is, or relates to, a development concern. 13 Division 2 Restriction on granting planning approval 14 75 Obligations of planning authorities 15 (1) A planning authority must not grant planning approval for the subdivision of land by 16 a strata plan for the purposes of the development in stages of a parcel under this Part 17 unless: 18 (a) the proposed strata plan includes a development lot, and 19 (b) the application for the planning approval is accompanied by a proposed strata 20 development contract. 21 (2) When a planning authority grants a planning approval in accordance with this 22 section, it must certify in the approved form that carrying out the permitted 23 development would not contravene: 24 (a) any condition subject to which the approval was granted, or 25 (b) the provisions of any environmental planning instrument in force when the 26 approval was granted, except to the extent, if any, specified in the certificate. 27 (3) A planning approval that purports to have been granted in contravention of this 28 section is invalid. 29 Division 3 Strata development contracts and registration of contracts 30 and amendments 31 76 Form and content of strata development contract 32 (1) A strata development contract must be in the approved form. 33 (2) A strata development contract must include: 34 (a) a concept plan that complies with section 77, and 35 (b) a description of the following: 36 (i) the land comprising the parcel, identifying separately the development 37 lot or lots, 38 (ii) any land proposed to be added to the parcel at a later time, 39 (iii) any part of the common property in relation to which the developer is to 40 have a right to occupy to carry out the proposed development, 41 (iv) any part of the proposed development that the developer is permitted by 42 the contract to carry out and may be compelled to carry out (identified 43 Page 36 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development in the contract as "warranted development--proposed development 1 subject to a warranty"), 2 (v) any part of the proposed development that the developer is permitted by 3 the contract to carry out but cannot, merely because it is described in the 4 contract, be compelled to carry out (identified in the contract as 5 "authorised proposals--proposed development not subject to a 6 warranty"), and 7 (c) any other information or document prescribed by the regulations. 8 (3) A strata development contract must predict a time, not more than 10 years after the 9 day on which the contract is registered, for the conclusion of the development 10 scheme to which it relates. 11 (4) A strata development contract that relates to development of a part strata parcel must 12 include a description of the part of the building and its site outside the part strata 13 parcel. 14 (5) A strata development contract cannot provide for the subdivision of common 15 property in a strata scheme without the consent, by special resolution, of the owners 16 corporation. 17 77 Concept plan 18 A concept plan for a strata development contract must separately illustrate, in the 19 way approved by the Registrar-General: 20 (a) the sites proposed for, and the nature of, the buildings and works that would 21 result from the carrying out of all permitted development under the contract, 22 and 23 (b) the sites proposed for, and the nature of, the buildings and works that would 24 result from the carrying out of all warranted development. 25 78 Variation of liability for common property expenses 26 (1) A strata development contract may apportion the liability for expenses relating to the 27 use or maintenance of common property in the strata scheme differently from the 28 way that liability would otherwise be apportioned by the schedule of unit entitlement 29 for the scheme. 30 (2) An apportionment under this section has effect despite the current schedule of unit 31 entitlement, but does not apply to any liability that relates to the use or maintenance 32 of the common property after the development scheme is concluded. 33 79 Signing and lodging strata development contract and amendments 34 (1) The Registrar-General may register a strata development contract, or an amendment 35 of a strata development contract, only if the contract or amendment is signed by all 36 of the following: 37 (a) the developer for the development lot, 38 (b) each registered mortgagee, chargee, covenant chargee and lessee of the 39 development lot, 40 (c) each registered mortgagee and chargee of a lease of the development lot, 41 (d) if the contract or amendment relates to a leasehold strata scheme--the lessor 42 of the scheme, 43 (e) if the amendment is required, under section 84, to be supported by any 44 resolution of the owners corporation of the strata scheme--the owners 45 corporation. 46 Page 37 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development (2) A strata development contract, or an amendment of a strata development contract, 1 must be lodged with the certificate required under section 75 (2) or 84 (7). 2 (3) The Registrar-General may refuse to register a strata development contract or an 3 amendment of a strata development contract if written consent to the registration has 4 not been lodged and signed by any one or more of the following that the 5 Registrar-General determines: 6 (a) the judgment creditor under any writ recorded in the folio for the development 7 lot, 8 (b) the lessee of any common property in the strata scheme, 9 (c) the caveator under a caveat affecting any estate or interest in the development 10 lot. 11 (4) The same person may be more than one of the parties to a strata development 12 contract. 13 80 Registering strata development contract and amendments 14 (1) The Registrar-General may register a strata development contract or an amendment 15 of a strata development contract by recording the contract or amendment in the 16 Register. 17 (2) The Registrar-General may refuse to register an amendment of a strata development 18 contract if: 19 (a) the certificate of title for the owners corporation or the common property, if 20 any, has not been given to the Registrar-General, or 21 (b) the contract does not include a revised concept plan that will comply with 22 section 77 after the amendment is registered. 23 (3) The Registrar-General must refuse to register a strata development contract or an 24 amendment of a strata development contract that does not comply with this Part. 25 81 Effect of strata development contract 26 (1) A strata development contract has effect as an agreement under seal containing the 27 covenants specified in Schedule 3 entered into by the owners corporation and each 28 person who for the time being is any of the following: 29 (a) the developer of the strata scheme, 30 (b) if the scheme is a leasehold strata scheme--the lessor of the scheme, 31 (c) an owner of a lot, other than the developer, 32 (d) a registered mortgagee, chargee, covenant chargee or lessee, or an occupier, of 33 a lot. 34 (2) The contract ceases to have effect: 35 (a) in relation to a person described in subsection (1) (a), (b), (c) or (d), when the 36 person ceases to be a person so described, and 37 (b) in relation to all of the persons described in subsection (1), when the 38 development scheme to which the contract relates is concluded. 39 (3) Subsection (2) does not affect an obligation incurred by a person, or a right that 40 accrued to a person, under the contract before it ceased to have effect in relation to 41 the person. 42 (4) A lessee entitled under a lease to immediate possession of a development lot is taken 43 to be the developer, and the person who would otherwise be the developer is taken 44 not to be the developer, for the purposes of this Act, the regulations and the strata 45 development contract. 46 Page 38 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development (5) A mortgagee, chargee or covenant chargee in possession of a development lot is 1 taken to be the developer, and the person who would otherwise be the developer is 2 taken not to be the developer, for the purposes of this Act, the regulations and the 3 strata development contract. 4 (6) A strata development contract does not permit development to be carried out in 5 contravention of this Act or any other Act or law. 6 (7) A provision in any other contract or instrument under which a strata development 7 contract is excluded, modified or restricted is void. 8 (8) A covenant entered into under a strata development contract does not merge on the 9 transfer of a lot. 10 (9) This section does not affect a right or remedy a person may have apart from a right 11 or remedy under a strata development contract. 12 (10) However, the Strata Schemes Management Act 2015 does not apply in relation to 13 matters arising under a strata development contract. 14 Note. A strata development contract for a strata scheme is void to the extent that it is 15 inconsistent with a strata management statement for the scheme. See section 105 (7). 16 82 Use of common property and development lot by developer 17 (1) A strata development contract may confer on a developer an exclusive, or any lesser, 18 right to occupy common property specified in the contract. 19 (2) When carrying out permitted development under a strata development contract, a 20 developer is entitled to use common property or a development lot to which the 21 contract relates: 22 (a) to the extent necessary to carry out the development, or 23 (b) to such other extent, if any, conferred by the contract in relation to specified 24 common property. 25 (3) A right conferred by this section may be exercised despite any other provision of this 26 Act or any provision of the by-laws for the strata scheme or of an order under 27 section 131 of the Strata Schemes Management Act 2015. 28 (4) However, the right must be exercised in a way that does not cause unreasonable 29 inconvenience to the occupier of any lot. 30 (5) The provisions of a strata development contract that relate to the maintenance or 31 upkeep of common property have effect despite any provision of the by-laws for the 32 strata scheme or of an order under section 131 of the Strata Schemes Management 33 Act 2015. 34 83 Adding land to a parcel subject to a strata development contract 35 (1) Land may be added to a parcel containing a development lot by registration of a plan 36 as a strata plan of subdivision. 37 (2) The plan may be registered only if: 38 (a) the land consisting of the former parcel and the additional land could be the 39 subject of a strata plan had the land in the former parcel not already been 40 subdivided under this Act, and 41 (b) the strata development contract, as in force when the plan is registered: 42 (i) provides for the land to be added to the parcel, and 43 (ii) states whether, on it being added to the parcel, the land will become 44 common property, a further development lot or an addition to an 45 existing development lot, or any specified combination of them, and 46 Page 39 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development (c) a plan showing as a single lot the additional land and the former parcel has 1 been lodged for registration under the Conveyancing Act 1919. 2 (3) On registration of the plan as a strata plan of subdivision, the land becomes common 3 property, a further development lot or an addition to an existing development lot, or 4 any specified combination of them, as provided by the strata development contract. 5 Division 4 Amendment of strata development contracts 6 84 Amendment of strata development contract 7 (1) A strata development contract for a strata scheme may be amended by the developer. 8 (2) An amendment must be in the approved form and has effect only if it: 9 (a) is made in compliance with this Division, and 10 (b) is registered, and 11 (c) is not inconsistent with a registered strata management statement for the strata 12 scheme. 13 (3) A proposed amendment that involves a change in the basic architectural or 14 landscaping design of the development, or in its essence or theme, may be made only 15 if it is: 16 (a) approved by the planning authority, and 17 (b) supported by a unanimous resolution of the owners corporation of the strata 18 scheme, unless the developer is the only owner of lots in the scheme. 19 (4) An amendment proposed to give effect to a change in the law or a change in the 20 requirements of a planning authority, and that does not involve a change referred to 21 in subsection (3), may be made only if: 22 (a) it is approved by the planning authority, and 23 (b) notice of the amendment is given to: 24 (i) the owners corporation of the strata scheme, and 25 (ii) the owner of each lot in the scheme, other than the developer, and 26 (iii) each registered mortgagee, chargee, covenant chargee and lessee of a lot 27 in the scheme. 28 (5) Any other proposed amendment that would require a change in the terms of a 29 planning approval may be made only if it is: 30 (a) approved by the planning authority, and 31 (b) supported by a special resolution of the owners corporation of the strata 32 scheme. 33 (6) Any other proposed amendment that would not require a change in the terms of a 34 planning approval may be made only if: 35 (a) it is supported by a resolution of the owners corporation of the strata scheme, 36 and 37 (b) the application for registration, or the contract as intended to be amended, is 38 accompanied by a certificate, given in the approved form by the planning 39 authority to the effect that a change in the terms of any planning approval is 40 not required. 41 (7) A planning authority that approves an amendment of a strata development contract 42 must give the applicant for the approval a copy of the instruments, plans and 43 drawings that describe and illustrate the amendment and a certificate in the approved 44 form to the effect that: 45 Page 40 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development (a) the copy describes and illustrates the approved amendment, and 1 (b) the contract, if amended as approved, would not be inconsistent with any 2 related planning approval. 3 Note. An amendment is not required to be supported by a resolution of the owners corporation 4 if the amendment is approved by the court under section 86. 5 85 Notice of particular decision, and appeal 6 (1) If a planning authority does not approve an amendment of a strata development 7 contract, the authority must give the applicant for the approval a notice stating: 8 (a) the grounds for the refusal, and 9 (b) that the applicant may appeal to the court against the refusal, and 10 (c) the period within which the appeal may be made. 11 (2) The applicant may appeal to the court against the refusal within 12 months after 12 receiving the notice. 13 (3) However, the court may, if it considers it appropriate in the circumstances, extend the 14 period for making the appeal. 15 (4) A decision of the court on appeal is taken to be the final decision of the planning 16 authority and is to be given effect as if it were the decision of the planning authority. 17 86 Approval of amendments by Land and Environment Court 18 (1) Despite section 84, an amendment of a strata development contract is not required to 19 be supported by a resolution of an owners corporation if the amendment is approved 20 by the court. 21 (2) The court may approve an amendment only if it is satisfied: 22 (a) that a motion supporting the amendment has been defeated, or 23 (b) that the notice of intention to move a motion supporting the amendment has 24 been given but a meeting to consider the motion has not been held within a 25 reasonable time after the notice was given, or 26 (c) that the consent to the amendment of a mortgagee, chargee, covenant chargee 27 or lessee has been sought but has been refused. 28 (3) The developer must serve an application for the court's approval on all of the 29 following: 30 (a) each owner of a lot in the strata scheme, other than the developer, 31 (b) each person, other than the applicant, who is the owner of a development lot, 32 (c) each registered mortgagee, chargee, covenant chargee and lessee of a lot in the 33 scheme, 34 (d) if the strata scheme is a leasehold strata scheme--the lessor (unless the lessor 35 is the developer), 36 (e) the owners corporation, 37 (f) the planning authority. 38 (4) Each person entitled to be served with the application is entitled to appear and be 39 heard on the hearing of the application. 40 Page 41 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development Division 5 Provisions relating to development concerns 1 87 Right to complete permitted development 2 (1) The vote of a developer who is permitted to carry out development because it is 3 included in a strata development contract is sufficient to pass or defeat a motion 4 included in the notice for a meeting of the owners corporation or its strata committee 5 if the passing or defeat of the motion would have the effect of making a decision 6 about a development concern. 7 (2) A decision about a development concern need not be supported by a special or 8 unanimous resolution of an owners corporation, despite any other provision of this 9 Act or the Strata Schemes Management Act 2015. 10 (3) A dealing, plan or other instrument may be executed by the owners corporation or by 11 a developer on behalf of the owners corporation for the purpose of giving effect to a 12 decision about a development concern. 13 (4) The regulations may impose requirements for the execution of dealings, plans and 14 other instruments by owners corporations and developers and may require 15 verification by statutory declaration of the circumstances in which they were 16 executed. 17 88 Meetings of owners corporation relating to development concerns 18 (1) A motion, the passing or defeat of which at a meeting of the owners corporation or 19 its strata committee would have the effect of making a decision about a development 20 concern, must be: 21 (a) identified as relating to a development concern in the notice for the meeting, 22 and 23 (b) moved separately from any other kind of motion. 24 (2) A general meeting of the owners corporation for the purpose of making a decision 25 about a development concern may be convened under Schedule 1 to the Strata 26 Schemes Management Act 2015 by the developer or the owners of at least 25% of the 27 lots in the strata scheme that are not development lots. 28 (3) In convening the general meeting, the developer or any of the owners convening the 29 meeting may give notice of the meeting on behalf of the strata committee of the 30 owners corporation. 31 (4) The presence of the developer (or if the developer is a corporation, of the company 32 nominee of the corporation) constitutes a sufficient quorum for any meeting of the 33 owners corporation or its strata committee of which notice has been properly given. 34 (5) Subsection (4) applies only while business relating to a development concern is being 35 dealt with. 36 (6) For the purpose only of allowing development permitted by a strata development 37 contract to be carried out, a developer (or if the developer is a corporation, the 38 company nominee of the corporation) may exercise the functions of an owners 39 corporation bound by the contract, or of another person having functions under the 40 strata scheme, that are prescribed by the regulations. 41 (7) This section has effect despite any other provision of this Act or the Strata Schemes 42 Management Act 2015. 43 Page 42 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development Division 6 Conclusion of development schemes 1 89 When development scheme is concluded 2 (1) A development scheme to which a strata development contract relates is concluded 3 when any of the following happens: 4 (a) any planning approval required for carrying out the scheme is revoked, 5 (b) a strata plan of subdivision that subdivides the last remaining unsubdivided 6 development lot to which the contract relates, or subdivides the residue of that 7 development lot after excision of part of the lot in accordance with the 8 contract, is registered, 9 (c) the conclusion time for the development scheme arrives, 10 (d) a notice in the approved form, that complies with subsection (2) and stating 11 that the development scheme to which the contract relates has concluded, is 12 registered, 13 (e) the strata scheme to which the contract relates is terminated under Part 9 by an 14 order of the Supreme Court. 15 (2) For the purpose of subsection (1) (d), the notice must: 16 (a) be signed by the developer, and 17 (b) be signed by each registered mortgagee, chargee, covenant chargee and lessee 18 of the development lot, and 19 (c) be lodged with a certificate, given in the approved form by the owners 20 corporation of the strata scheme, certifying that the owners corporation has, by 21 unanimous resolution, agreed that the development scheme has concluded. 22 (3) In this section: 23 conclusion time for a development scheme means: 24 (a) the time predicted by the contract for conclusion of the development scheme, 25 or 26 (b) if the time referred to in paragraph (a) is changed by an order under 27 section 92--the time provided for under the order. 28 90 Revised schedule of unit entitlement 29 (1) If, at the conclusion of a development scheme, the owners corporation considers that 30 the schedule of unit entitlement for the strata scheme does not apportion the unit 31 entitlements so as to reflect the market value of the lots in the strata scheme, the 32 owners corporation may lodge a revised schedule of unit entitlement for the scheme. 33 (2) The revised schedule of unit entitlement must be lodged within 2 years after the 34 conclusion of the development scheme. 35 (3) A revised schedule of unit entitlement must: 36 (a) be in the approved form, and 37 (b) be clearly identified as a revised schedule of unit entitlement, and 38 (c) show, as a whole number apportioned on a market value basis and totalling the 39 unit entitlements, the unit entitlement of each lot, and 40 (d) be accompanied by a certificate in the approved form signed by a qualified 41 valuer certifying that the unit entitlements of the lots are apportioned on a 42 market value basis, and 43 (e) be accompanied by a certificate in the approved form signed by the owners 44 corporation and certifying that it has, by special resolution, agreed to the 45 Page 43 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development substitution of the existing schedule of unit entitlement with the revised 1 schedule. 2 (4) In this section: 3 market value basis--see clause 1 of Schedule 2. 4 91 Registrar-General to record matters about conclusion of development scheme 5 (1) The Registrar-General must record the conclusion of a development scheme in the 6 folio for the owners corporation and the common property in the strata scheme. 7 (2) If, after the conclusion of a development scheme, a revised schedule of unit 8 entitlement for the scheme is lodged under section 90, the Registrar-General must 9 record it as the schedule of unit entitlement in substitution for the existing schedule 10 of unit entitlement for the scheme. 11 92 Order for extension or conclusion of development scheme 12 (1) On application made to it by any person bound by a strata development contract, the 13 court may, by order, do either or both of the following: 14 (a) defer, either generally or to a specified time, the time at which a development 15 scheme would otherwise be concluded, 16 (b) fix a time for the conclusion of a development scheme, whether it is an earlier 17 or a later time than it would otherwise be. 18 (2) The applicant for the order must serve notice of the application, in accordance with 19 rules of court, on all of the following: 20 (a) the developer, 21 (b) each owner of a lot in the strata scheme, other than the developer, 22 (c) each registered mortgagee, chargee, covenant chargee and lessee of a lot in the 23 scheme, 24 (d) if the strata scheme is a leasehold strata scheme--the lessor (unless the lessor 25 is the developer), 26 (e) the owners corporation, 27 (f) the planning authority, 28 (g) the Registrar-General, 29 (h) any other person directed by the court. 30 (3) Each person entitled to be served with notice of the application may appear and be 31 heard on the hearing of the application. 32 (4) An order under this section may: 33 (a) contain provisions relating to the strata scheme that the court considers 34 necessary because of the conclusion of the development scheme, and 35 (b) require the payment of an amount to or by the owners corporation or the 36 owners of lots to any one or more of them in addition to, or instead of, an award 37 of damages in the exercise of the jurisdiction conferred by section 20 (2) (d) 38 of the Land and Environment Court Act 1979, and 39 (c) contain other provisions and requirements the court considers just and 40 equitable. 41 (5) The court may, from time to time, vary an order under this section on the application 42 of any person entitled to apply for an order. This section applies to an application for 43 a variation of an order in the same way as it applies to an application for an order. 44 Page 44 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development Division 7 Applications for assistance 1 93 Application for assistance 2 (1) An owners corporation or an owner of a lot, other than the developer, may apply in 3 writing to the Secretary for assistance to bring or defend proceedings before the court 4 relating to: 5 (a) a strata development contract or an amendment of any such contract, or 6 (b) an agreement implied by section 81, or 7 (c) a planning approval granted in accordance with section 75 (1) or a 8 modification of any such approval. 9 (2) After receiving an application, the Secretary: 10 (a) may require the applicant to give the Secretary further information about the 11 application that the Secretary considers may assist investigation of the 12 application, and 13 (b) may refuse to proceed with the application until the further information is 14 given. 15 (3) For the purpose of this Division, an application under subsection (1) is called an 16 application for assistance. 17 94 Investigation of application 18 (1) The Secretary may decide to proceed with an investigation of an application for 19 assistance or, having proceeded with an investigation, decide to discontinue the 20 investigation. 21 (2) In making the decision, the Secretary must have regard to whether, in the opinion of 22 the Secretary: 23 (a) the application is frivolous, vexatious, misconceived or lacking in substance, 24 or 25 (b) the applicant has unreasonably delayed complying with a requirement for 26 further information, or 27 (c) investigation, or further investigation, is a matter for a planning authority, or 28 (d) the applicant has an alternative and better means of redress. 29 (3) The Secretary may have regard to other matters the Secretary considers appropriate. 30 (4) If the Secretary decides to investigate an application, the Secretary must: 31 (a) inform the applicant of the decision, and 32 (b) inform the owners corporation of the decision and the subject-matter of the 33 investigation, unless the owners corporation is the applicant, and 34 (c) inform the developer and the relevant planning authority of the decision and 35 the subject-matter of the investigation, and 36 (d) invite each person referred to in paragraph (b) or (c), other than the applicant, 37 to give the Secretary a written submission about the subject-matter within a 38 specified period. 39 (5) If the Secretary decides not to investigate an application or to discontinue an 40 investigation, the Secretary must: 41 (a) inform the applicant of the decision, and 42 (b) if the decision is to discontinue an investigation--inform each other person the 43 Secretary informed of the original decision to investigate the application. 44 Page 45 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development 95 Application of Fair Trading Act 1987 to investigation 1 Sections 20-22 of the Fair Trading Act 1987 apply to an investigation of an 2 application for assistance as if: 3 (a) references in the sections to information, documents or evidence included 4 references to information, documents or evidence relating to an application for 5 assistance, and 6 (b) references in the sections to an investigator included references to the 7 Secretary and to any person who has been delegated the powers conferred on 8 the Secretary in relation to an application for assistance, and 9 (c) references in the sections to that Act included references to this Act. 10 Note. Sections 20-22 of the Fair Trading Act 1987 provide for matters about obtaining 11 information, documents or evidence in relation to an investigation, the inspection and copying 12 of documents and the confidentiality of information, documents and evidence obtained. 13 96 Grant of legal assistance 14 (1) Division 2, other than sections 12 and 15 (6), of Part 2 of the Fair Trading Act 1987, 15 applies to an application for assistance in the same way as it applies to an application 16 under section 12 of that Act. 17 (2) The Secretary may, with the consent of the Minister administering the Fair Trading 18 Act 1987, seek an interim restraining order under section 124 of the Environmental 19 Planning and Assessment Act 1979 in relation to the subject-matter of the 20 application. 21 (3) The Secretary may seek the order whether or not investigation of the application has 22 been completed. 23 (4) The order may be granted without any undertaking being given by the Secretary as 24 to damages. 25 (5) An interim restraining order sought by the Secretary is, for the purposes of 26 subsection (1), taken to have been sought by the person who made the application for 27 assistance and that person is taken to be an assisted person under Division 2 of Part 2 28 of the Fair Trading Act 1987. 29 97 Resolution authorising application by owners corporation 30 (1) An owners corporation may, if authorised by resolution: 31 (a) make an application for assistance, or 32 (b) bring proceedings referred to in section 123 of the Environmental Planning 33 and Assessment Act 1979 or section 20 (1) (e) of the Land and Environment 34 Court Act 1979 relating to: 35 (i) a strata development contract or an amendment of any such contract, or 36 (ii) a planning approval granted in accordance with section 75 (1) of this 37 Act or a modification of any such approval. 38 (2) Any vote cast by the developer (whether as an owner of a lot or as a mortgagee, 39 covenant chargee or proxy) or by a mortgagee of the developer (whether as a 40 mortgagee, covenant chargee or proxy) is to be disregarded in determining whether 41 a resolution has been passed. 42 Page 46 Strata Schemes Development Bill 2015 [NSW] Part 5 Staged development Division 8 Miscellaneous 1 98 Functions of Secretary 2 The Secretary may: 3 (a) give advice about the remedies available in relation to matters arising under 4 this Part, and 5 (b) try to bring the interested parties to an agreement that will settle any question, 6 dispute or difficulty that arises from the operation of this Part, and 7 (c) advise the relevant planning authority of any departure from the terms of a 8 planning approval or strata development contract. 9 Page 47 Strata Schemes Development Bill 2015 [NSW] Part 6 Strata management statements and easements relating to part strata parcels Part 6 Strata management statements and easements relating 1 to part strata parcels 2 Division 1 Strata management statements 3 99 Requirement to register strata management statement 4 (1) The Registrar-General must not register a plan as a strata plan that creates a part strata 5 parcel unless the Registrar-General also registers a strata management statement for 6 the building and its site or waives, under subsection (2), the requirement for a strata 7 management statement. 8 (2) The Registrar-General may waive the requirement for a strata management 9 statement: 10 (a) if: 11 (i) the building is erected on a lot in a community scheme, and 12 (ii) only part of the building and site is to be subdivided by a strata plan, and 13 (iii) all of the residue of the building and site is to be community property 14 within the meaning of the Community Land Management Act 1989, or 15 (b) if: 16 (i) the plan relates to part of a building that includes one or more part strata 17 parcels, and 18 (ii) a strata management statement has already been registered for the 19 building and its site, or 20 (c) if a registered building management statement is in force for the building and 21 its site, or 22 (d) if the Minister, on the grounds the Minister considers sufficient, directs. 23 100 Form and content of strata management statement 24 A strata management statement must be in the approved form and comply with 25 Schedule 4, and that Schedule applies to the statement. 26 101 Registration of strata management statement and amendment 27 (1) The Registrar-General may register a strata management statement or an amendment 28 of a strata management statement by recording the statement or amendment in the 29 Register. 30 (2) The Registrar-General may refuse to register a strata management statement or an 31 amendment of a strata management statement if the application for registration does 32 not comply with a requirement of this Act or the regulations. 33 (3) The Registrar-General may register a strata management statement for a building and 34 its site at any time part of the building is included in a part strata parcel but is not the 35 subject of a strata management statement. 36 102 Recording information about strata management statement in folios 37 (1) If a strata management statement is registered, the Registrar-General must record the 38 following in the relevant folios: 39 (a) the existence of the statement and of each registered amendment of it, 40 (b) other information relating to the statement and each amendment that the 41 Registrar-General considers appropriate. 42 Page 48 Strata Schemes Development Bill 2015 [NSW] Part 6 Strata management statements and easements relating to part strata parcels (2) In this section: 1 relevant folios means the folios for: 2 (a) each owners corporation of a strata scheme for part of the building, and 3 (b) each part of the building or site that does not form part of a part strata parcel. 4 103 Amendment of strata management statement 5 (1) A registered strata management statement may be amended only if the amendment is: 6 (a) supported by the following: 7 (i) a special resolution of the owners corporation of each strata scheme for 8 part of the building, 9 (ii) each person in whom is vested an estate in fee simple in a part of the 10 building or its site that is not included in a part strata parcel, 11 (iii) if the building is the subject of a leasehold strata scheme--each person 12 in whom is vested a leasehold estate, recorded in a folio, in a part of the 13 building or its site that is not included in a part strata parcel, or 14 (b) ordered under this Act or another Act by a court, or 15 (c) consequential on the revocation or modification, under section 103 of the 16 Environmental Planning and Assessment Act 1979, of a planning approval. 17 (2) An amendment of a strata management statement must be in the approved form and 18 has effect under this Part only if it is recorded in the folio for: 19 (a) each owners corporation of a strata scheme for part of the building, and 20 (b) each part of the building or site that does not form part of a part strata parcel. 21 104 Signing of strata management statement and amendment 22 (1) The Registrar-General may register a strata management statement or an amendment 23 of a strata management statement only if the statement or amendment is: 24 (a) signed by the owners corporation of each strata scheme, if any, for a part of the 25 building and is accompanied by evidence to show that it is supported by a 26 special resolution of the owners corporation, and 27 (b) signed by each person in whom is vested an estate in fee simple in a part of the 28 building or its site that is not included in a part strata parcel, and 29 (c) if the building is the subject of a leasehold strata scheme--signed by each 30 person in whom is vested a leasehold estate in a part of the building or its site 31 that is not included in a part strata parcel, and 32 (d) signed by each registered mortgagee, chargee or covenant chargee of an estate 33 referred to in paragraph (b) or (c). 34 (2) The Registrar-General may refuse to register a strata management statement or an 35 amendment of a strata management statement unless written consent to the 36 registration has been lodged and signed by one or more of the following as the 37 Registrar-General determines: 38 (a) the lessee under any lease, or the judgment creditor under any writ, recorded 39 in a folio for an estate referred to in subsection (1) (b) or (c) or the folio relating 40 to any common property affected by the statement or amendment, 41 (b) the caveator under a caveat affecting any estate or interest referred to in 42 subsection (1) (b), (c) or (d). 43 (3) The Registrar-General may, in a particular case, waive a requirement for a signature 44 under this section without giving notice to any person. 45 Page 49 Strata Schemes Development Bill 2015 [NSW] Part 6 Strata management statements and easements relating to part strata parcels 105 Effect of strata management statement 1 (1) A registered strata management statement for a building has effect as an agreement 2 under seal containing the covenants referred to in subsection (2) entered into by each 3 person who for the time being is: 4 (a) the owners corporation of a strata scheme for part of the building, or 5 (b) an owner, mortgagee in possession or lessee of a lot in a strata scheme for part 6 of the building, or 7 (c) another person in whom is vested the fee simple of a part of the building or site 8 affected by the statement, or 9 (d) the mortgagee in possession or lessee of a part of the building or site referred 10 to in paragraph (c). 11 (2) The covenants referred to in subsection (1) are: 12 (a) a covenant by which the persons jointly and severally agree to carry out their 13 obligations under the registered strata management statement, and 14 (b) a covenant by which the persons jointly and severally agree to permit the 15 carrying out of the obligations. 16 (3) The agreement ceases to have effect under this Part: 17 (a) in relation to a person referred to in subsection (1) (b), (c) or (d), on the person 18 ceasing to be that person, and 19 (b) in relation to all persons referred to in subsection (1), on the termination of all 20 strata schemes to which the strata management statement relates. 21 (4) Subsection (3) does not prejudice or affect an obligation incurred by, or a right that 22 accrued to, a person under the agreement while it was in force. 23 (5) A strata management statement has no effect to the extent that it is inconsistent with: 24 (a) a condition imposed on a planning approval relating to the site of the building 25 to which the statement relates, or 26 (b) an order under Part 12 of the Strata Schemes Management Act 2015, or 27 (c) another Act or law. 28 (6) Subject to this Act and the regulations, a provision in any instrument under which the 29 agreement is excluded, modified or restricted is void. 30 (7) Without limiting subsection (6), a provision of a strata development contract relating 31 to a strata scheme is void to the extent that it is inconsistent with a provision of a 32 strata management statement relating to the scheme. 33 (8) A covenant entered into under the agreement does not merge in a transfer of a lot. 34 (9) This section does not affect a right or remedy that a person may have under a strata 35 management statement apart from a right or remedy under this Part. 36 Division 2 Easements 37 106 Easements on registration of strata plan that creates part strata parcel 38 (1) On registration of a plan as a strata plan that creates a part strata parcel, the following 39 easements are implied in relation to the lots and common property comprising the 40 part strata parcel and situated within a building: 41 (a) an easement benefiting the lots and common property for their subjacent and 42 lateral support and burdening other parts of the building capable of affording 43 support, 44 Page 50 Strata Schemes Development Bill 2015 [NSW] Part 6 Strata management statements and easements relating to part strata parcels (b) an easement burdening the lots and common property for subjacent and lateral 1 support and benefiting other parts of the building capable of enjoying support, 2 (c) an easement benefiting the lots and common property for their shelter and 3 burdening all other parts of the building capable of affording shelter, 4 (d) an easement burdening the lots and common property for shelter and 5 benefiting other parts of the building capable of being sheltered by the lots and 6 common property. 7 (2) All ancillary rights and obligations reasonably necessary to make easements 8 effective apply in relation to the easements. 9 (3) An easement for support or shelter: 10 (a) entitles the owner of the dominant tenement to enter the servient tenement to 11 replace, renew or restore the support or shelter, and 12 (b) subsists until the easement is extinguished. 13 (4) The Registrar-General must record the easements in the Register. 14 (5) This section applies despite section 88 of the Conveyancing Act 1919. 15 107 Other easements in particular strata schemes 16 (1) This section applies if an instrument lodged with a strata plan that creates a part strata 17 parcel purports to create any of the following easements burdening or benefiting the 18 part strata parcel or the land comprised in the part strata parcel: 19 (a) a right of vehicular access, 20 (b) a right of personal access, 21 (c) an easement for a specified service. 22 (2) The rights and obligations conferred or imposed by the easement are the rights and 23 obligations specified in Schedule 5, other than to the extent the rights or obligations 24 are varied or negatived under this section or in the instrument. 25 (3) The terms of an easement referred to in subsection (1) may be varied under section 47 26 of the Real Property Act 1900, to the extent the terms relate to: 27 (a) the responsibility for maintaining in good order or repairing the access or other 28 things required for enjoyment of the easement, or 29 (b) the proportions in which the persons having the benefit or burden of the 30 easement are liable to contribute to the cost of maintaining in good order or 31 repairing the access or other things. 32 (4) On application by a person who has an estate or interest in land that has the benefit 33 or burden of an easement to which this section applies, the Supreme Court may, by 34 order, vary the terms of the easement to the extent the terms relate to a matter referred 35 to in subsection (3) (a) or (b). 36 (5) The Registrar-General must, on application made in the approved form, make all 37 necessary recordings in the Register to give effect to an order. 38 (6) On registration under subsection (5), an order is binding on all persons entitled or 39 later becoming entitled to the easement, whether of full age or capacity or not and 40 whether the persons are parties to the proceedings or have been served with notice or 41 not. 42 (7) Despite section 88 of the Conveyancing Act 1919, the site of an easement for a 43 specified service need not be identified on the strata plan. 44 Page 51 Strata Schemes Development Bill 2015 [NSW] Part 6 Strata management statements and easements relating to part strata parcels (8) In this section: 1 drainage includes the product of rain, a storm, soakage, a spring or seepage. 2 service means a water, sewerage, drainage, gas, electricity, oil, garbage, conditioned 3 air, telephone, television or radio impulses or signals service or another service 4 prescribed by the regulations. 5 Division 3 Miscellaneous 6 108 Registered building management statement taken to be strata management 7 statement 8 (1) This section applies if the Registrar-General: 9 (a) registers a plan as a strata plan that creates a part strata parcel, and 10 (b) under section 99 (2), waives the requirement for a strata management 11 statement because a registered building management statement is in force for 12 the building and its site. 13 (2) On registration of the plan, the building management statement is taken to be the 14 registered strata management statement for the building and its site. 15 109 Obligation of lessee to comply with particular management statements 16 In a lease of a lot or common property in a strata scheme that is part of a community 17 scheme, an agreement by the lessee to comply with the following is implied: 18 (a) the community management statement under the Community Land 19 Development Act 1989 for the community scheme, 20 (b) if the strata scheme is also part of a precinct scheme under the Community 21 Land Development Act 1989--the precinct management statement under that 22 Act for the precinct scheme. 23 110 Obligation to give information about particular management statements 24 If it is proposed to grant a lease of a lot or common property in a strata scheme that 25 is part of a community scheme, the lessor must include a copy of the following with 26 the copy of the lease to be signed by the lessee: 27 (a) the community management statement under the Community Land 28 Development Act 1989 for the community scheme, 29 (b) if the strata scheme is also part of a precinct scheme under the Community 30 Land Development Act 1989--the precinct management statement under that 31 Act for the precinct scheme. 32 Maximum penalty: 1 penalty unit. 33 Page 52 Strata Schemes Development Bill 2015 [NSW] Part 7 Compulsory acquisition of lots and common property Part 7 Compulsory acquisition of lots and common property 1 111 Application of Part 2 This Part does not apply to: 3 (a) an easement, or 4 (b) land in a strata scheme that is part of a community scheme. 5 112 Restriction on resumptions affecting parcels 6 (1) A resuming authority cannot resume land: 7 (a) comprising solely common property, unless the resumed land is defined in the 8 notice of resumption as a lot in a current plan, or 9 (b) comprising or including all the lots in a strata scheme, unless: 10 (i) the resumed land also includes all common property in the scheme and 11 the notice of resumption states whether the resumed land is to be 12 excluded from the strata scheme or to remain in the scheme, and 13 (ii) if any resumed land is to be excluded from the scheme--the resumed 14 land is defined in the notice of resumption as a lot in a current plan, and 15 (iii) if any resumed land is a lot that is to remain in the scheme--the resumed 16 land is defined in the notice of resumption as one or more lots in a strata 17 plan, strata plan of subdivision or strata plan of consolidation, or 18 (c) comprising some, but not all, of the lots in a strata scheme and any common 19 property in the scheme, unless: 20 (i) the notice of resumption states whether the resumed land is to be 21 excluded from the strata scheme or to remain in the scheme, and 22 (ii) if any resumed land is to be excluded from the scheme--the resumed 23 land is defined in the notice of resumption as a lot in a current plan, and 24 (iii) if any resumed land is a lot that is to remain in the scheme--the resumed 25 land is defined in the notice of resumption as one or more lots in a strata 26 plan, strata plan of subdivision or strata plan of consolidation. 27 (2) This section applies despite any other Act. 28 113 Requirements for registration of plans to effect resumption 29 (1) The Registrar-General must not register a plan that relates to a parcel and is lodged 30 by a resuming authority to effect a resumption referred to in section 112 (1) unless: 31 (a) the notice of resumption complies with that subsection, and 32 (b) the plan includes a statement or otherwise indicates that registration of the plan 33 is required to effect the resumption, and 34 (c) if the plan is lodged for registration as a current plan that relates to all the lots 35 and all the common property in a strata scheme--it is accompanied by a 36 certified or office copy of the minute of an order made under section 136 in 37 relation to the resumption, and 38 (d) if the plan is lodged for registration as a current plan that does not relate solely 39 to common property and is not a plan to which paragraph (c) applies--it is 40 accompanied by a certified or office copy of the minute of an order made under 41 section 115, 131 or 136, or an order dismissing the application for any such 42 order, in relation to the resumption. 43 (2) Despite section 22, a plan that is intended to effect a resumption and is lodged for 44 registration as a strata plan of subdivision may be registered if it is signed or sealed 45 by or on behalf of the resuming authority. 46 Page 53 Strata Schemes Development Bill 2015 [NSW] Part 7 Compulsory acquisition of lots and common property (3) Despite section 195D (1) of the Conveyancing Act 1919, a plan that is intended to 1 effect a resumption and is lodged for registration as a current plan may be registered 2 if it is signed or sealed by or on behalf of the resuming authority. 3 114 Effect of resumption 4 (1) If land was common property immediately before its resumption, the land ceases to 5 be common property and this Act ceases to apply to the land on its resumption. 6 (2) However, subsection (1) does not apply to a resumption of all lots and all common 7 property in a strata scheme if the notice of resumption states the resumed land is to 8 remain in the scheme. 9 (3) If a notice of resumption states that any resumed lots in a strata scheme are to be 10 excluded from the scheme, the lots cease to be subject to the strata scheme, and this 11 Act ceases to apply to the lots, on the resumption. 12 (4) If a notice of resumption states that any resumed land is to remain in the scheme, this 13 Act applies in relation to the resuming authority and the resumed land as if the 14 resuming authority had acquired the land by registration under the Real Property Act 15 1900 of a transfer. 16 (5) Subsection (4) applies despite any other Act. 17 115 Readjustment of strata scheme for purposes of resumption 18 (1) A resuming authority may apply to the Supreme Court for an order under 19 subsection (4) if the resuming authority: 20 (a) proposes to resume land in a parcel and the land does not consist solely of 21 common property or of all the lots and all the common property comprised in 22 the parcel, and 23 (b) proposes to exclude the land from the strata scheme. 24 (2) Notice of the application must be served, in accordance with rules of court, on: 25 (a) each owner and registered mortgagee of a lot in the strata scheme, and 26 (b) if the strata scheme is a leasehold strata scheme--the lessor of the scheme, and 27 (c) the owners corporation, and 28 (d) if part of a lot is proposed to be resumed and the local council has not approved 29 of a plan referred to in section 113 (1) (d) relating to the part--the local 30 council, and 31 (e) the Registrar-General, and 32 (f) any other person directed by the Supreme Court. 33 (3) A person who is entitled to be served with a notice under subsection (2) and the 34 resuming authority are entitled to appear and be heard on the hearing of the 35 application. 36 (4) The Supreme Court may, on an application made under subsection (1), make an order 37 for or in relation to any one or more of the following matters: 38 (a) substituting a new schedule of unit entitlement for the existing schedule of unit 39 entitlement, 40 (b) if part of a lot is to be resumed and the resuming authority proposes to exclude 41 the part from the strata scheme--designating as a lot the residue of the lot 42 affected by the resumption, 43 (c) amending a strata development contract that relates to the parcel, 44 Page 54 Strata Schemes Development Bill 2015 [NSW] Part 7 Compulsory acquisition of lots and common property (d) requiring the resuming authority, when resuming the land referred to in its 1 application, also to resume any residue referred to in paragraph (b) so that the 2 residue will either be excluded from the strata scheme or remain subject to the 3 scheme, according to the terms of the order, 4 (e) with the consent of the owner of a lot part of which is proposed to be 5 resumed--vesting, freed and discharged from any mortgage, charge, covenant 6 charge or writ, any other part of the lot in the owners corporation as common 7 property, 8 (f) any matter in relation to which the Supreme Court considers it just and 9 equitable, in the circumstances of the case, to make provision in the order. 10 (5) An order made under subsection (4): 11 (a) takes effect on the day on which the resumption referred to in the order takes 12 effect, and 13 (b) has effect according to its tenor. 14 (6) If, on an application made under subsection (1), the Supreme Court considers that an 15 order should not be made under subsection (4): 16 (a) the court may, on application made by any person entitled to appear and be 17 heard on the hearing of the application or on its own initiative, direct that the 18 application be treated as an application for an order under section 131 or 136, 19 and 20 (b) if the court makes a direction referred to in paragraph (a): 21 (i) the application the subject of the direction is taken to be an application 22 made under section 130 or 135 by a person entitled to make the 23 application, and 24 (ii) the applicant under subsection (1), and any other person entitled to 25 appear and be heard under those sections, is entitled to appear and be 26 heard on the hearing of the application. 27 116 Costs 28 The costs of proceedings for an application under section 115 are payable by the 29 resuming authority unless the Supreme Court otherwise orders. 30 117 Common property not to pass with lot or part of lot in certain circumstances 31 A resuming authority does not acquire any interest in common property in a strata 32 scheme merely because it resumes the whole or part of a lot that immediately before 33 the resumption was a lot in the scheme if the notice of resumption states that the lot 34 is to be excluded from the scheme. 35 118 Severance of lots by resumption 36 For the purposes of any Act relating to the payment of compensation on the 37 resumption of land: 38 (a) a part of a lot that is resumed is taken to be severed from every other part of 39 the lot, whether or not the part and any other part are contiguous, and 40 (b) if the resumed land or any part of the resumed land is common property, the 41 beneficial interests of the owners in the common property is taken to be vested 42 in the owners corporation to the exclusion of the owners for the purposes of 43 any claim for or the payment of compensation in relation to the resumption. 44 Page 55 Strata Schemes Development Bill 2015 [NSW] Part 7 Compulsory acquisition of lots and common property 119 Resumption by authority bound by Act 1 (1) Despite section 8 of the Land Acquisition (Just Terms Compensation) Act 1991, a 2 resumption of land to which this Part and that Act apply must comply with this Part 3 and that Act. 4 (2) A resumption of land to which this Part applies and to which Part 12 of the Roads Act 5 1993 applies must comply with this Part and that Part. 6 (3) If there is an inconsistency between this Part and an Act referred to in subsection (1) 7 or (2), this Part prevails to the extent of the inconsistency. 8 120 Resumption by authority not bound by Act 9 If a part of a parcel is resumed by a resuming authority that is not bound by this Act 10 and does not comply with this Part, the owners corporation or a person affected by 11 the resumption may apply under Part 9 for an order under section 131 (Order to vary 12 strata scheme), as if the building had been damaged or destroyed, or for an order 13 under section 136 (Order to terminate strata scheme). 14 Page 56 Strata Schemes Development Bill 2015 [NSW] Part 8 Particular functions of Registrar-General Part 8 Particular functions of Registrar-General 1 121 Registration of plans and other instruments 2 (1) The Registrar-General may, subject to and for the purposes of this Act, register a plan 3 or other instrument lodged for registration. 4 (2) A plan is registered as a strata plan, strata plan of subdivision, strata plan of 5 consolidation or building alteration plan when the Registrar-General records on the 6 plan, in the Register or in another record kept by the Registrar-General, the matters 7 about the plan the Registrar-General considers appropriate. 8 (3) Subsection (2) is subject to sections 11 (2) and 16 (2). 9 Note. Under sections 11 (2) and 16 (2), a plan that is lodged for registration as a strata plan 10 or strata plan of subdivision for a leasehold strata scheme and is required to be accompanied 11 by a lease or leases for registration under the Real Property Act 1900 is taken to be registered 12 only when the lease or leases are registered. 13 (4) A notice is registered as a notice of conversion when the Registrar-General records 14 the notice in the Register. 15 (5) Despite any other provision of this Act, a plan or notice referred to in this section 16 must not be registered unless all other plans or documents prescribed by the 17 regulations are lodged with the plan or notice. 18 122 Provisions applying to plans and certain other documents 19 (1) The Registrar-General may copy a document and certify the copy as a true copy of 20 the document (a certified copy). 21 (2) A certified copy has, for all purposes, the same validity and effect as the original 22 document to which it relates. 23 (3) If the Registrar-General certifies a document under subsection (1), the 24 Registrar-General may destroy, or cease to keep in electronic form, the original 25 document to which the certified copy relates. 26 (4) In this section: 27 document means: 28 (a) a plan, strata development contract or strata management statement, or 29 amendment of a strata development contract or strata management statement, 30 that is registered, or 31 (b) a copy of a document referred to in paragraph (a), or 32 (c) a strata plan or strata plan of resubdivision within the meaning of the repealed 33 Conveyancing (Strata Titles) Act 1961. 34 123 Power to adjust unit entitlements 35 (1) If a whole number is obtained by dividing by a whole number the unit entitlements 36 of the lots and proposed lots shown on a proposed schedule of unit entitlement for a 37 strata scheme that accompanies a plan lodged for registration, or on a revised 38 schedule of unit entitlement lodged under section 90, the Registrar-General may, in 39 registering the plan, record in the folio for the common property: 40 (a) as the unit entitlement of each lot, the whole number obtained in relation to the 41 lot, and 42 (b) as the aggregate unit entitlement, the appropriate aggregate unit entitlement. 43 (2) If a whole number is obtained by dividing by a whole number the unit entitlement of 44 each lot in a strata scheme, the Registrar-General may amend the schedule of unit 45 entitlement recorded in the folio for the common property: 46 Page 57 Strata Schemes Development Bill 2015 [NSW] Part 8 Particular functions of Registrar-General (a) by substituting for the unit entitlement of each lot a unit entitlement equal to 1 the whole number obtained in relation to the lot, and 2 (b) by substituting for the aggregate unit entitlement the appropriate aggregate 3 unit entitlement. 4 (3) The Registrar-General must, on making a recording or amendment under this 5 section, give the owners corporation of the strata scheme written notice of the unit 6 entitlements and aggregate unit entitlement recorded. 7 124 Recordings about restrictive use conditions 8 (1) If a strata certificate issued by a local council is subject to a restrictive use condition, 9 or a strata certificate issued by an accredited certifier has a notation of a restrictive 10 use condition, the Registrar-General must, on creating a folio for the lot, record the 11 condition in the folio. 12 (2) A condition recorded under subsection (1) is an interest for the purposes of section 42 13 of the Real Property Act 1900. 14 (3) On lodgment of an instrument referred to in section 64, the Registrar-General must 15 record the instrument in the Register. 16 (4) When the Registrar-General makes the record, the utility lot to which the instrument 17 relates is released from the restriction referred to in the instrument. 18 125 Prohibition on recordings in the Register in certain circumstances 19 (1) This section applies if the Registrar-General registers a strata plan of subdivision or 20 a current plan in relation to a resumption referred to in section 112 (1). 21 (2) Until the Registrar-General makes a recording in the Register under section 31A (3) 22 of the Real Property Act 1900 in relation to the resumption, the Registrar-General 23 must not: 24 (a) create a folio for a lot comprised in the strata plan of subdivision or a current 25 plan lot in the current plan, or 26 (b) make a recording in the Register by reference to any such lot or current plan 27 lot. 28 126 Certain recordings to be made by Registrar-General 29 (1) If the Registrar-General registers a strata plan of subdivision that is not a plan 30 referred to in section 125, or registers a strata plan of consolidation, the 31 Registrar-General must: 32 (a) cancel the folio for any former lot subdivided or consolidated by the 33 registration of the plan, and 34 (b) create a folio for each new lot created by the subdivision or consolidation, and 35 (c) amend the schedule of unit entitlement recorded in the folio for the common 36 property in the strata scheme by recording in the folio the matters the 37 Registrar-General considers appropriate. 38 (2) If the Registrar-General registers a notice of conversion of a lot into common 39 property, the Registrar-General must: 40 (a) cancel the folio for the converted lot, and 41 (b) amend the schedule of unit entitlement recorded in the folio for the common 42 property in the strata scheme by recording in the folio the matters the 43 Registrar-General considers appropriate. 44 Page 58 Strata Schemes Development Bill 2015 [NSW] Part 8 Particular functions of Registrar-General 127 Functions if resumed land remains in strata scheme 1 (1) Subsection (2) applies if the whole of a lot, other than a lot in a strata plan of 2 subdivision referred to in section 125, is resumed and the notice of resumption states 3 that the resumed land is to remain in the strata scheme. 4 (2) A recording in the Register that the Registrar-General is, under section 31A (3) of the 5 Real Property Act 1900, authorised or required to make in relation to the resumption 6 must be made in the folio for the resumed lot. 7 (3) Subsection (4) applies if the whole of a lot in a strata plan of subdivision referred to 8 in section 125 is resumed and the notice of resumption states that the resumed land 9 is to be excluded from the strata scheme. 10 (4) The Registrar-General must, after making a recording in the Register under 11 section 31A (3) of the Real Property Act 1900, in relation to the resumption: 12 (a) cancel the folio for the subdivided lot, and 13 (b) create a folio for each new lot, and 14 (c) amend the schedule of unit entitlement recorded in the folio for the common 15 property in the strata scheme by recording in the folio the matters the 16 Registrar-General considers appropriate. 17 128 Functions if resumed land is excluded from strata scheme 18 (1) If land consisting solely of common property is resumed, any recording in the 19 Register that, under section 31A (3) of the Real Property Act 1900, the 20 Registrar-General is authorised or required to make must be made in the folio for the 21 common property. 22 (2) Subsection (3) applies if: 23 (a) the whole of a parcel or any part of a parcel that does not consist of common 24 property is resumed, and 25 (b) the notice of resumption states that the resumed land is to be excluded from 26 the strata scheme, and 27 (c) the Registrar-General makes a recording in the Register under section 31A (3) 28 of the Real Property Act 1900 in relation to the resumption. 29 (3) The Registrar-General must make the recordings in the Register and create the folios 30 the Registrar-General considers necessary or appropriate to give effect to the order 31 made under section 115, 131 or 136 in relation to the resumed land and the strata 32 scheme. 33 Page 59 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes Part 9 Variation or termination of strata schemes 1 Division 1 Preliminary 2 129 Definitions 3 In this Part: 4 court means the Supreme Court. 5 section 115 termination application means an application made under section 115 6 that, under section 115 (6) or under sections 115 (6) and 133, is treated as an 7 application for an order under section 136. 8 section 115 variation application means an application made under section 115 that, 9 under section 115 (6) or under sections 115 (6) and 140, is treated as an application 10 for an order under section 131. 11 termination order: 12 (a) for Division 3--see section 136 (1), or 13 (b) for Division 4--see section 143 (1) (a). 14 variation order--see section 131 (1). 15 Division 2 Variation of strata schemes 16 130 Application for order consequent on damage to or destruction of building 17 (1) If a building the subject of a strata scheme is damaged or destroyed, any of the 18 following persons may apply to the court for a variation order for the scheme: 19 (a) an owner of a lot in the scheme, 20 (b) a registered mortgagee or covenant chargee of a lot in the scheme, 21 (c) if the scheme is a leasehold strata scheme--the lessor of the scheme, 22 (d) the owners corporation. 23 (2) Notice of the application must be served, in accordance with rules of court, on: 24 (a) each person referred to in subsection (1), other than the applicant, and 25 (b) the local council, and 26 (c) the Registrar-General, and 27 (d) any other person directed by the court. 28 (3) The applicant and each person entitled to be served with notice of the application 29 may appear and be heard on the hearing of the application. 30 131 Order to vary strata scheme 31 (1) The court may, on an application made under section 130, make an order in relation 32 to the variation of an existing strata scheme or the substitution for the existing strata 33 scheme of a new strata scheme (each a variation order). 34 (2) A variation order may include directions about any of the following: 35 (a) the substitution for the existing schedule of unit entitlement of a new schedule 36 of unit entitlement, 37 (b) the reinstatement in whole or in part of the building or, in the case of a part 38 strata parcel, of the part of the building subject to the scheme, 39 (c) the amendment of any strata development contract or strata management 40 statement that relates to the parcel, 41 Page 60 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (d) the transfer to or vesting in the owners corporation, free from mortgages, 1 charges, covenant charges and writs, of the interests of owners of lots that have 2 been wholly or partly destroyed, 3 (e) the application of insurance amounts received by the owners corporation in 4 relation to the damage to or destruction of the building, 5 (f) the payment of amounts to or by the owners corporation, an owner of a lot or 6 a lessor of a leasehold strata scheme, 7 (g) if the order is made on a section 115 variation application--any matter 8 referred to in section 115 (4), 9 (h) if the application for the order is authorised by section 120--any matter 10 referred to in section 115 (4) (a), (b) or (e), 11 (i) any matter in relation to which the court considers it just and equitable, in the 12 circumstances of the case, to make provision in the order. 13 (3) A variation order has effect according to its tenor. 14 (4) The court may, from time to time, change a variation order on the application of any 15 person entitled to appear and be heard on the hearing of the application for the order. 16 132 When order takes effect 17 A variation order takes effect: 18 (a) if the order is made on a section 115 variation application or an application 19 authorised by section 120--on the day on which the resumption referred to in 20 the order takes effect, or 21 (b) otherwise--on the day specified in the order. 22 133 Direction of court to treat application differently 23 (1) If the court considers that a variation order should not be made, it may, on application 24 made by any person entitled to appear and be heard on the hearing of the application 25 for the order or on its own initiative, direct that the application be treated as an 26 application for an order under section 136. 27 (2) If the court makes a direction under subsection (1): 28 (a) the application the subject of the direction is taken to be made under 29 section 135 by a person entitled to make the application, and 30 (b) the applicant for the variation order, and any other person entitled to appear 31 and be heard under that section, is entitled to appear and be heard on the 32 hearing of the application. 33 134 Costs 34 Unless the court otherwise orders, the costs of proceedings under this Division on a 35 section 115 variation application are payable by the resuming authority. 36 Division 3 Termination of strata schemes by order of court 37 135 Application for order to terminate strata scheme 38 (1) Any of the following persons may apply to the court for a termination order for a 39 strata scheme: 40 (a) an owner of a lot in the scheme, 41 (b) a mortgagee or covenant chargee of a lot in the scheme, 42 Page 61 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (c) if the scheme is a leasehold strata scheme--the lessor of the scheme, 1 (d) the owners corporation. 2 (2) Notice of the application must be served, in accordance with rules of court, on: 3 (a) each person referred to in subsection (1), other than the applicant, and 4 (b) the local council, and 5 (c) the Registrar-General, and 6 (d) any other person (including creditors of the owners corporation) directed by 7 the court. 8 (3) The applicant and each person entitled to be served with notice of the application 9 may appear and be heard on the hearing of the application. 10 (4) An application under subsection (1) (b) may be made by a prescribed authority 11 having the benefit of a positive covenant only if the authority has applied under 12 section 88I of the Conveyancing Act 1919 for an order that the land the subject of the 13 strata scheme be transferred to the authority. 14 (5) In subsection (4), prescribed authority means a prescribed authority within the 15 meaning of section 88D or 88E of the Conveyancing Act 1919. 16 136 Order to terminate strata scheme 17 (1) The court may, on an application made under section 135, make an order terminating 18 a strata scheme (a termination order). 19 (2) A termination order may include directions about any of the following: 20 (a) the sale or disposition of property of the owners corporation, 21 (b) the discharge of the liabilities of the owners corporation, 22 (c) the termination of any development scheme that relates to the parcel and the 23 cancellation of the strata development contract, 24 (d) the termination or amendment of a strata management statement that relates to 25 the parcel, 26 (e) the persons liable to contribute amounts required for the discharge of the 27 liabilities of the owners corporation and the proportionate liability of the 28 persons, 29 (f) the distribution of the assets of the owners corporation and the proportionate 30 entitlement of each person under the distribution, 31 (g) the administration, powers, authorities, duties and functions of the owners 32 corporation, 33 (h) the voting power at meetings of the owners corporation of persons referred to 34 in paragraph (e) or (f), 35 (i) the winding up of the owners corporation, including the appointment, powers, 36 authorities, duties and functions of any person to carry out the winding up, 37 (j) any matter in relation to which the court considers it just and equitable, in the 38 circumstances of the case, to make provision in the order. 39 (3) The court may, from time to time, change a termination order on the application of 40 any person entitled to appear and be heard on the hearing of the application for the 41 order. 42 Page 62 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes 137 When order takes effect 1 A termination order takes effect: 2 (a) if the order is made on a section 115 termination application or an application 3 authorised by section 120--on the day on which the resumption referred to in 4 the order takes effect, or 5 (b) otherwise--on the day specified in the order. 6 138 Effect of order 7 (1) When a termination order takes effect: 8 (a) the estate or interest of the former owners in the part of the former parcel that 9 consisted of common property vested in the owners corporation as agent for 10 the former owners vests in the owners corporation as principal, subject only to 11 an estate or interest recorded in: 12 (i) the folio, or on any registered lease or registered sublease, evidencing 13 the estate or interest of the owners corporation in the common property, 14 or 15 (ii) the relevant folio created under section 29 (1), and 16 (b) the estate or interest of each person in the part of the former parcel that did not 17 consist of common property vests in the owners corporation as principal, 18 subject only to an estate or interest recorded in: 19 (i) the folio evidencing the estate or interest of the owners corporation in 20 the common property comprised in the former parcel, or 21 (ii) the relevant folio created under section 29 (1), 22 to the extent the recorded estate or interest was capable of affecting a former 23 lot, and 24 (c) each person who, immediately before the order took effect, was an owner of a 25 lot in the strata scheme ceases to be an owner of a lot in the scheme, and 26 (d) each person whose estate or interest is divested by paragraph (b) has instead 27 the rights and liabilities conferred or imposed on the person by the order, and 28 (e) if the strata scheme is a leasehold strata scheme and the leases or another 29 agreement provide for the payment of compensation for the value of 30 improvements comprised in the parcel--the former lessor under the scheme is 31 liable to pay compensation to each former owner for the value of the 32 improvements comprised in the former parcel that is attributable to the lot 33 leased by the former owner. 34 (2) Compensation payable under subsection (1) (e) is to be determined in accordance 35 with the formula set out in Schedule 6 or as otherwise agreed by the former lessor 36 and former owner. 37 (3) A termination order has effect according to its tenor and despite any provision of this 38 Act, other than this Division. 39 139 Dealing with disputes about value of improvements for leasehold strata schemes 40 (1) If, in relation to a former lot in a leasehold strata scheme that is terminated by a 41 termination order, there is a dispute about the amount of compensation to be paid for 42 the value of improvements attributable to the lot, the dispute must be resolved: 43 (a) if provided for under the lease of the lot or the parties to the dispute otherwise 44 agree--by arbitration under the Commercial Arbitration Act 2010, or 45 (b) otherwise--by order of the court. 46 (2) An application for an order of the court may be made by any party to the dispute. 47 Page 63 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (3) Notice of the application must be served, in accordance with rules of court, on the 1 persons directed by the court. 2 (4) As far as practicable, all applications relating to the same leasehold strata scheme 3 must be heard together. 4 140 Direction of court to treat application differently 5 (1) If the court considers that a termination order should not be made, it may, on 6 application made by any person entitled to appear and be heard on the hearing of the 7 application for the order or on its own initiative, direct that the application be treated 8 as an application for a variation order. 9 (2) If the court makes a direction under subsection (1): 10 (a) the application the subject of the direction is taken to be made under 11 section 130 by a person entitled to make the application, and 12 (b) the applicant for the termination order, and any other person entitled to appear 13 and be heard under that section, is entitled to appear and be heard on the 14 hearing of the application. 15 141 Costs 16 Unless the court otherwise orders, the costs of proceedings under this Division in 17 relation to the following applications are payable by the resuming authority: 18 (a) a section 115 termination application, 19 (b) an application made under section 135 in relation to a proposed resumption of 20 all the lots and all the common property in a strata scheme. 21 Division 4 Termination of strata schemes by Registrar-General 22 142 Application to Registrar-General for termination of strata scheme 23 (1) A person may apply to the Registrar-General for termination of a strata scheme, 24 unless the scheme relates to a parcel that is subject to a strata development contract. 25 (2) Unless the Registrar-General otherwise agrees, the applicant must, at least 14 days 26 before the application is made, publish details of the proposed termination, and a 27 statement of intention to make the application: 28 (a) in a daily newspaper circulating generally in the State, and 29 (b) in a local newspaper circulating generally in the area in which the parcel is 30 situated. 31 (3) Unless the Registrar-General otherwise agrees, the application must be signed by all 32 of the following: 33 (a) each owner of a lot in the scheme, 34 (b) if the scheme is a leasehold strata scheme--the lessor of the scheme, 35 (c) each registered lessee of a lot in the scheme, 36 (d) each registered mortgagee, chargee and covenant chargee of a lot or of a 37 registered lease of a lot or of the common property, if any, in the scheme. 38 (4) Also, the application must be signed by the planning authority, if any, for subdivision 39 of the land to which it relates. 40 (5) The application must be accompanied by: 41 (a) the certificates of title for all the lots and common property in the scheme, 42 unless the Registrar-General otherwise agrees, and 43 Page 64 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (b) the other documents, consents and evidence the Registrar-General requires, 1 and 2 (c) if required by the Registrar-General, a plan for the parcel acceptable for 3 registration as a deposited plan and signed or consented to as required by 4 Division 3 of Part 23 of the Conveyancing Act 1919. 5 143 Decision about terminating strata scheme 6 (1) On receiving an application to terminate a strata scheme, the Registrar-General may: 7 (a) make an order terminating the scheme (a termination order), or 8 (b) refuse to terminate the scheme. 9 (2) A refusal by the Registrar-General to terminate a strata scheme does not prevent an 10 application being made under section 135 for termination of the scheme. 11 144 When order takes effect 12 A termination order takes effect when it is recorded by the Registrar-General in the 13 folio for the land comprising the parcel. 14 145 Registrar-General to record termination of strata scheme 15 On recording a termination order, the Registrar-General must: 16 (a) cancel the folios for the lots and common property in the former parcel, and 17 (b) if the strata scheme is a freehold strata scheme--create a folio or folios for the 18 land in the former parcel. 19 146 Effect of order for freehold strata scheme 20 When a termination order relating to a freehold strata scheme takes effect: 21 (a) the owners corporation is dissolved and the strata scheme is terminated, and 22 (b) the land in the former parcel immediately before the scheme was terminated 23 and the assets of the former owners corporation vest in the former owners as 24 tenants in common in shares proportional to the unit entitlements of their 25 former lots (or in the former owners or in the other proportions set out in the 26 application), and 27 (c) the estate or interest of the former owners in land vested by this section is 28 subject to any estate or interest registered or recorded, immediately before 29 termination of the scheme, in the folios for the lots and the common property 30 in the former parcel, and 31 (d) the former owners of lots are liable for the liabilities of the owners corporation 32 in shares proportional to the unit entitlements of their former lots, and 33 (e) any legal proceedings begun by or against the owners corporation may be 34 completed by or against the former owners. 35 147 Effect of order for leasehold strata scheme 36 When a termination order relating to a leasehold strata scheme takes effect: 37 (a) the owners corporation is dissolved and the strata scheme is terminated, and 38 (b) the former leases of each former lot and the former lease of the common 39 property are determined, and 40 (c) the persons who, immediately before the order took effect, were owners or 41 lessees of the lots in the scheme cease to be owners or lessees of the lots, and 42 Page 65 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (d) the former owners of the lots are liable for the liabilities of the owners 1 corporation in shares proportional to the unit entitlements of their former lots, 2 and 3 (e) any legal proceedings begun by or against the owners corporation may be 4 completed by or against the former owners, and 5 (f) the assets of the former owners corporation immediately before the order took 6 effect vest in the former lessor of the scheme or, if the application so provides, 7 in the former owners as tenants in common in shares proportional to the unit 8 entitlements of their former lots (or in the former owners or in the other 9 proportions set out in the application), and 10 (g) the land that comprises the former parcel is vested in the former lessor of the 11 scheme freed and discharged from any mortgage or charge registered, 12 immediately before termination of the scheme, in the folio for a lease of a lot 13 or the common property in the former scheme. 14 Division 5 Termination of leasehold strata schemes on expiry of leases 15 148 Termination on expiry of leases 16 (1) When all leases of the lots and common property in a leasehold strata scheme expire 17 or are otherwise determined without being wholly or partly replaced by further leases 18 of the lots or common property registered under the Real Property Act 1900: 19 (a) the scheme is terminated, and 20 (b) the owners corporation is dissolved, and 21 (c) if the leases or another agreement provide for the payment of compensation for 22 the value of improvements comprised in the parcel--the former lessor of the 23 scheme is liable to pay compensation to each former owner for the value of the 24 improvements that is attributable to the former owner's lot, and 25 (d) all rights vested in the owners corporation immediately before its dissolution 26 that, but for the dissolution, would have survived the expiry of the leases are 27 vested in the former owners, and 28 (e) the former owners become jointly and severally liable for all of the liabilities 29 of the owners corporation subsisting immediately before its dissolution, and 30 (f) legal proceedings begun by or against the owners corporation may be 31 completed by or against the former owners. 32 (2) Compensation payable under subsection (1) (c) is to be determined in accordance 33 with the formula set out in Schedule 6 or as otherwise agreed by the former lessor 34 and former owner. 35 (3) As soon as practicable after the termination of a leasehold strata scheme, the 36 Registrar-General must, on application of the former lessor: 37 (a) cancel the folios for the leases of the lots and common property in the scheme, 38 and 39 (b) cancel the strata plan for the scheme, and 40 (c) record on the folio for the parcel that was the subject of the scheme the fact 41 that the scheme is terminated. 42 (4) Subsection (1) is subject to section 150. 43 Page 66 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes 149 Dispute about value of improvements 1 (1) If there is a dispute about the amount of compensation to be paid to an owner or 2 former owner for the value of improvements attributable to a lot, the dispute must be 3 resolved: 4 (a) in the way provided for under the lease of the lot or agreed to by the parties to 5 the dispute (for example, by arbitration under the Commercial Arbitration Act 6 2010), or 7 (b) otherwise--by order of the court. 8 (2) An application for an order of the court may be made by any party to the dispute. 9 (3) Notice of the application must be served, in accordance with rules of court, on the 10 persons directed by the court. 11 (4) As far as practicable, all applications relating to the same leasehold strata scheme 12 must be heard together. 13 150 Order to continue owners corporation for specified purposes 14 (1) At any time before the expiry of the leases of the lots and common property in a 15 leasehold strata scheme, an owner of a lot in the scheme, the owners corporation or 16 a creditor of the owners corporation may apply to the court for an order under 17 subsection (4). 18 (2) Notice of the application must be served, in accordance with rules of court, on each 19 person referred to in subsection (1), other than the applicant, and on the other persons 20 directed by the court. 21 (3) The applicant and any person on whom notice must be served under subsection (2) 22 is entitled to appear and be heard on the hearing of the application. 23 (4) At the hearing of the application, the court may make an order to the effect that, 24 despite the expiry of the leases of the lots and common property in the scheme, the 25 owners corporation continues in existence for the purposes specified in the order 26 until the date specified in the order or in a further order of the court. 27 (5) The order may include directions relating to any of the following matters: 28 (a) the sale or disposition of property of the owners corporation, 29 (b) the discharge of the liabilities of the owners corporation, 30 (c) the termination of any development scheme, 31 (d) the persons liable to contribute money for the discharge of the liabilities of the 32 owners corporation and the proportionate liability of the persons, 33 (e) the distribution of the assets of the owners corporation and the proportionate 34 entitlement of each person under the distribution, 35 (f) the administration and functions of the owners corporation, 36 (g) pending legal proceedings that have been brought by or against the owners 37 corporation, 38 (h) the voting power at meetings of the owners corporation of persons referred to 39 in paragraphs (d) and (e), 40 (i) the winding up of the owners corporation, including the appointment and 41 functions of a person to carry out the winding up, 42 (j) another matter in relation to which the court considers it is just and equitable 43 to make provision in the order. 44 (6) The order has effect despite any other provision of this Act. 45 Page 67 Strata Schemes Development Bill 2015 [NSW] Part 9 Variation or termination of strata schemes (7) The court may vary an order made under subsection (4) on the application of any 1 person who was entitled to appear and be heard on the hearing of the application for 2 the order. 3 Division 6 Miscellaneous 4 151 Interchangeability of notices 5 A notice served under section 115, 130 or 135 may, if it relates to an application that 6 is required to be treated as an application under another of those sections, be taken to 7 be a notice served under the other section. 8 152 Consequences of making order 9 (1) Subject to section 128 (3), on receiving a certified or office copy of the minute of a 10 variation order or a termination order under Division 3 (including an order relating 11 to an amendment or cancellation of a strata development contract), the 12 Registrar-General must make appropriate recordings in the Register to give effect to 13 the order. 14 (2) If, on receiving a certified or office copy of the minute of a termination order under 15 Division 3, the Registrar-General is required by subsection (1) to make recordings in 16 the Register, the Registrar-General must: 17 (a) cancel the folios that evidence title to the lots and common property in the 18 former strata scheme, and 19 (b) if the scheme is a freehold strata scheme--create a folio for the estate or 20 interest in the former parcel that is vested in the owners corporation on the 21 order taking effect, and 22 (c) if the scheme is a leasehold strata scheme--record in the folio evidencing the 23 lessor's reversion in the former parcel that the owners corporation is the lessee 24 of the part of the parcel that contained the former lots and common property 25 in the scheme, together with any other estates or interests to which the 26 leasehold estate of the owners corporation in that part continues to be subject. 27 Page 68 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes Part 10 Strata renewal process for freehold strata schemes 1 Division 1 Preliminary 2 153 Application and purpose of Part 3 (1) This Part applies to freehold strata schemes other than the following schemes: 4 (a) a scheme relating to a parcel that is the subject of a development contract, 5 (b) a scheme in which one or more of the lots in the scheme are, or form part of, 6 a retirement village within the meaning of the Retirement Villages Act 1999. 7 (2) The purpose of this Part is to facilitate the collective sale or redevelopment of 8 freehold strata schemes in accordance with the process set out in this Part. 9 154 Definitions 10 In this Part: 11 ancillary order--see section 186 (1). 12 collective sale of a strata scheme means a sale of the whole strata scheme. 13 compensation value, in relation to a lot, means: 14 (a) the compensation to which the owner of the lot would be entitled as 15 determined under section 55 of the Land Acquisition (Just Terms 16 Compensation) Act 1991 (subject to any modifications prescribed by the 17 regulations), or 18 (b) if the regulations prescribe a different method of determining that value--the 19 value of the lot determined in accordance with that method. 20 court means the Land and Environment Court. 21 developer means a person or group of persons proposing to carry out a 22 redevelopment of a strata scheme in accordance with a strata renewal plan. 23 dissenting owner, in relation to a strata renewal plan, means an owner of a lot in 24 relation to which a support notice is not in effect under this Part for the plan. 25 independent valuer means a qualified valuer who: 26 (a) has appropriate experience or expertise to undertake valuations for the purpose 27 of this Part, and 28 (b) has no pecuniary or other interest that could reasonably be regarded as capable 29 of affecting the qualified valuer's ability to give the valuations in good faith. 30 market value, in relation to a building and its site, means the value of the building 31 and its site determined in accordance with the regulations. 32 objection means an objection filed in the court in accordance with section 180. 33 operational period of a strata renewal committee means the period for which the 34 committee may, under section 166, exercise its function. 35 qualified request means a qualified request under section 19 of the Strata Schemes 36 Management Act 2015. 37 redevelopment of a strata scheme means a redevelopment of the whole strata scheme 38 in a way that alters the scheme to the extent that its termination and replacement by 39 a further strata plan is necessary. 40 required level of support, in relation to a strata renewal plan for a strata scheme, 41 means the support (given in support notices that are in effect under this Part) of the 42 owner or owners of at least 75% of the lots, other than utility lots, in the scheme. 43 returning officer for a strata renewal plan means a person who is appointed as the 44 returning officer for the strata renewal plan in accordance with the regulations. 45 Page 69 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes strata renewal committee means a strata renewal committee established under 1 section 160. 2 strata renewal plan means a strata renewal plan prepared in accordance with this 3 Part for a strata scheme. 4 strata renewal proposal--see section 156 (1). 5 support notice--see section 174 (1). 6 155 Application of Strata Schemes Management Act 2015 7 (1) If there is an inconsistency between the Strata Schemes Management Act 2015 and 8 this Part or an order of the court made under this Part, this Part and the order prevail 9 to the extent of the inconsistency. 10 (2) To remove doubt, but subject to subsection (1): 11 (a) Schedule 1 to the Strata Schemes Management Act 2015 applies in relation to 12 a meeting of an owners corporation under this Part, and 13 (b) Schedule 2 to the Strata Schemes Management Act 2015 applies in relation to 14 a meeting of a strata committee under this Part. 15 Division 2 Strata renewal proposals 16 156 Submission of strata renewal proposal 17 (1) Any person (whether or not the person is the owner of a lot) may give a written 18 proposal for the collective sale or redevelopment of a strata scheme (a strata renewal 19 proposal) to the owners corporation of the scheme. 20 (2) A strata renewal proposal must include the information or other matters prescribed 21 by the regulations. 22 Note. Under section 190, particular strata renewal proposals cannot be given to an owners 23 corporation. 24 157 Strata committee to consider proposal 25 (1) As soon as practicable (but no later than 30 days) after the owners corporation 26 receives a strata renewal proposal, the strata committee of the owners corporation 27 must consider it at a meeting of the committee. 28 (2) The secretary of the owners corporation, or any other member of the strata 29 committee, may convene the meeting. 30 (3) The purpose of the meeting is to decide whether or not the strata committee considers 31 the strata renewal proposal warrants further consideration by the owners corporation. 32 (4) The minutes of the meeting must include: 33 (a) a complete copy of the strata renewal proposal, and 34 (b) detailed reasons for the decision. 35 (5) The strata committee must give each owner of a lot in the strata scheme a copy of the 36 minutes within 14 days after the meeting. 37 158 Convening general meeting to consider proposal 38 (1) If the strata committee decides that the strata renewal proposal warrants further 39 consideration by the owners corporation, it must, as soon as practicable (but no later 40 than 30 days) after making the decision, convene a general meeting of the owners 41 corporation to further consider the proposal. 42 Page 70 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (2) Also, a general meeting of the owners corporation may be convened to consider the 1 strata renewal proposal on a qualified request, whether or not the strata committee 2 has considered the proposal or decided it warrants further consideration. 3 (3) The purpose of the general meeting is to decide whether or not the owners 4 corporation considers the strata renewal proposal warrants investigation by a strata 5 renewal committee. 6 (4) Notice of the general meeting must: 7 (a) comply with clause 1 of Schedule 7, and 8 (b) be given to each owner at least 14 days before the meeting. 9 159 Lapsing of proposal 10 (1) This section applies if: 11 (a) the strata committee decides a strata renewal proposal does not warrant further 12 consideration by the owners corporation and a qualified request to consider the 13 proposal at a general meeting of the owners corporation has not been made 14 within 44 days after the day the strata committee made the decision, or 15 (b) the owners corporation, under Division 3, decides a strata renewal proposal 16 does not warrant investigation by a strata renewal committee. 17 (2) The strata renewal proposal lapses for the purpose of this Part when the decision is 18 made. 19 Division 3 Establishment, membership, function, operation and 20 dissolution of strata renewal committees 21 160 Establishment of committee 22 (1) If the owners corporation passes a motion that the strata renewal proposal warrants 23 investigation by a strata renewal committee, the owners corporation must, by 24 resolution at a meeting: 25 (a) establish a strata renewal committee to prepare a strata renewal plan for the 26 strata scheme, and 27 (b) elect its members. 28 (2) A person who has a financial interest in more than 25% of the lots (other than utility 29 lots) in the strata scheme must not vote in a resolution to establish a strata renewal 30 committee or be elected as a member of the committee unless the person has 31 disclosed that fact to the owners corporation. 32 (3) The strata renewal committee must consist of a chairperson and the number of other 33 members, not more than 8, determined by the owners corporation. 34 (4) A strata renewal committee is taken to be established on the day its members are first 35 elected under this Division. 36 (5) A motion for the resolution to establish a strata renewal committee may include 37 forms of motion for the matters the owners corporation considers appropriate, 38 including the matters referred to in clause 2 of Schedule 7. 39 161 Election of members 40 (1) The owners corporation may elect, as members of the strata renewal committee, 41 persons who are eligible for appointment or election to the strata committee of the 42 owners corporation. 43 Page 71 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (2) Before election under subsection (1), a person must disclose to the owners 1 corporation any pecuniary or other interest the person may have relating to the strata 2 renewal proposal that could conflict with the proper performance of the strata 3 renewal committee's function. 4 (3) A person may be a member of both the strata committee and the strata renewal 5 committee. 6 (4) Nomination for election as a member of a strata renewal committee may be made 7 before or at the meeting at which it is established. 8 162 Notice of decision to establish committee 9 (1) If a strata renewal committee is established for a strata scheme, the secretary of the 10 owners corporation must, within 14 days after it is established, give written notice of 11 the decision to the owner of each lot in the scheme. 12 (2) The notice must include the information prescribed by the regulations. 13 163 Vacation of office 14 (1) A person vacates office as a member of the strata renewal committee if the person: 15 (a) is no longer eligible for appointment or election to the strata committee of the 16 owners corporation, or 17 (b) was not an owner when elected as a member, or was a company nominee, and 18 the individual who nominated the person for election, or the corporation for 19 which the person is a company nominee, ceases to be an owner or notifies the 20 owners corporation in writing that the person's office is vacated, or 21 (c) resigns office by written notice given to the owners corporation, or 22 (d) is removed from office by special resolution of the owners corporation. 23 (2) The owners corporation may elect a person who is eligible to be a member of the 24 strata renewal committee to fill a vacancy in the office of a member of the committee. 25 164 Function and operation of committee 26 (1) The function of the strata renewal committee is to prepare a strata renewal plan, 27 relating to the strata renewal proposal for the strata scheme, for consideration by the 28 owners corporation and the owners in accordance with this Part. 29 (2) In exercising its function, the strata renewal committee: 30 (a) must not spend more than the amount that the committee has, by resolution of 31 the owners corporation made from time to time, approval to spend in preparing 32 the strata renewal plan, and 33 (b) may engage persons to help it prepare the strata renewal plan (for example, a 34 person who gave the strata renewal proposal to the owners corporation), if the 35 owners corporation has delegated to the committee the authority to do so. 36 (3) The strata renewal committee may at any time ask the secretary of the owners 37 corporation to convene a general meeting to approve: 38 (a) amounts that may be spent by the committee in preparing a strata renewal plan, 39 or 40 (b) any other matter relating to the operation of the committee or the exercise of 41 its function. 42 (4) If, when an act or proceeding of the strata renewal committee was done, taken or 43 commenced, there was: 44 (a) a vacancy in the office of a member of the committee, or 45 Page 72 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (b) any defect in the election of a member, 1 any act or proceeding of the committee done in good faith is as valid as if the vacancy 2 or defect did not exist and the committee were fully and properly constituted. 3 165 Conflicts of interest 4 (1) If: 5 (a) a member of a strata renewal committee has a pecuniary or other interest in the 6 proposed collective sale or redevelopment under a strata renewal proposal, and 7 (b) the interest may raise a conflict with the proper performance of the 8 committee's function, 9 the member must, as soon as practicable after becoming aware of the potential 10 conflict, disclose the nature of the interest to a meeting of the strata committee. 11 (2) On being informed of a matter under subsection (1), the strata committee must refer 12 the matter to a meeting of the owners corporation for a decision by the owners 13 corporation (having regard to the nature of the interest): 14 (a) to remove the member from office, or 15 (b) to allow the member to remain in the office and to require the member to 16 abstain from voting at, or participating in, a meeting of the strata renewal 17 committee on a matter relating to the member's interest, or 18 (c) to take no further action in relation to the matter and to allow the member to 19 remain in the office. 20 (3) A member of a strata renewal committee must comply with any requirement made 21 under subsection (2) (b). 22 166 Period of operation of committee 23 Unless the strata renewal committee is earlier dissolved, the committee may exercise 24 its function: 25 (a) for 1 year after the day it is established, or 26 (b) if the owners corporation, by special resolution made before the end of the 27 period referred to in paragraph (a), extends that period--for the extended 28 period. 29 167 Dissolution of committee 30 A strata renewal committee is dissolved on the earliest of the following days: 31 (a) the day the owners corporation, by resolution, dissolves the committee, 32 (b) the day the strata renewal plan prepared by the committee lapses under this 33 Part, 34 (c) the day the operational period of the committee ends, unless the required level 35 of support for the strata renewal plan prepared by the committee has been 36 obtained before that day, 37 (d) the day the owners corporation decides to apply to the court for an order to 38 give effect to the strata renewal plan prepared by the committee. 39 Division 4 Procedures of strata renewal committees 40 168 Meetings and voting 41 (1) A strata renewal committee may hold its meetings at the times and in the way it 42 decides. 43 (2) The quorum for a meeting of a strata renewal committee is a majority of its members. 44 Page 73 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (3) A decision supported by a majority of votes cast at a meeting of a strata renewal 1 committee at which a quorum is present is the decision of the committee. 2 169 Minutes and record of decisions 3 (1) A strata renewal committee must keep minutes of its meetings and a record of its 4 decisions. 5 (2) Within 14 days after a meeting of the strata renewal committee, the chairperson of 6 the committee must: 7 (a) give a copy of the minutes of the meeting to the secretary of the owners 8 corporation and to each member of the committee, and 9 (b) if the owners corporation has a notice board, place a copy of the minutes of the 10 meeting on that notice board. 11 (3) If asked by an owner of a lot in the strata scheme, the secretary of the owners 12 corporation must give the owner a copy of the minutes of a meeting within 14 days 13 after the request is made. 14 (4) Nothing in this section requires the chairperson to give a copy of the minutes to 15 himself or herself. 16 Division 5 Strata renewal plans 17 170 Content of strata renewal plan 18 (1) A strata renewal plan for a strata scheme must include the following information: 19 (a) a general overview of the strata renewal proposal to which it relates, 20 (b) if the plan is for a collective sale of the scheme: 21 (i) the name of the purchaser, if known, or a proposal for marketing the 22 parcel for sale by public auction or tender, and 23 (ii) the sale price (if known), or a minimum reserve price for the sale or 24 details of the way in which a minimum reserve price for the sale is to be 25 set, and 26 (iii) the proposed completion day for the sale, and 27 (iv) the proposed day on which the owners of the lots are to provide vacant 28 possession of their lots, and 29 (v) the details, prescribed by the regulations, about costs and expenses to be 30 deducted from the sale price, and 31 (vi) any other terms and conditions of the proposed sale that the strata 32 renewal committee considers are significant, 33 (c) if the plan is for a redevelopment of the scheme: 34 (i) the name of the proposed developer, and 35 (ii) details of any planning approvals, or other authorisations under an Act 36 or otherwise, required before the redevelopment can start, and 37 (iii) an estimate of the period from the start to completion of the 38 redevelopment, and 39 (iv) details of any periods during which the owners of lots will be required 40 to provide vacant possession because of the redevelopment, and 41 (v) details of arrangements for financing the redevelopment, and 42 (vi) details of the terms of settlement and the amounts to be paid to each 43 dissenting owner for the purchase of the owner's lot, and 44 Page 74 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (vii) details of the terms of settlement for each supporting owner including 1 the amount and timing of any payments to be made to the owner and, if 2 the owner has a right to buy back into any future scheme, details of that 3 right, 4 (d) any other information or document about the proposed collective sale or 5 redevelopment prescribed by the regulations. 6 (2) Subsection (1) does not limit the matters that may be included in a strata renewal 7 plan. 8 (3) If a strata renewal plan is for a collective sale of a strata scheme, the plan must 9 provide for the purchase of each owner's lot at not less than the compensation value 10 for the lot. 11 (4) If a strata renewal plan is for a redevelopment of a strata scheme, the plan must 12 provide for each dissenting owner's lot to be purchased at not less than the 13 compensation value for the lot. 14 171 Requirements relating to sale of lots 15 (1) If a strata renewal plan is for a collective sale of a strata scheme, the amount paid for 16 the sale of the lots and common property in the scheme must be apportioned among 17 the owners of the lots in the same proportions as the unit entitlements of the owners' 18 lots. 19 (2) If a strata renewal plan is for a redevelopment of a strata scheme, the amount to be 20 paid for the sale of a dissenting owner's lot must not be less than the compensation 21 value of the lot. 22 172 Consideration of plan by owners corporation 23 (1) On preparing a strata renewal plan, the strata renewal committee must convene a 24 general meeting of the owners corporation to consider the plan. 25 (2) Notice of the general meeting must: 26 (a) comply with clause 3 of Schedule 7, and 27 (b) be given to each owner at least 14 days before the meeting. 28 (3) The owners corporation may, by resolution, amend the strata renewal plan or decide 29 to return the plan to the strata renewal committee for amendment. 30 (4) If, under subsection (3), the strata renewal plan is returned to the strata renewal 31 committee for amendment, subsections (1) and (2) apply in relation to the plan on 32 completion of the amendments. 33 (5) The owners corporation may, by special resolution, decide to give the strata renewal 34 plan, whether or not amended in accordance with this section, to the owners for their 35 consideration. 36 (6) A motion under this section is not a motion for which a priority vote can be cast under 37 clause 24 of Schedule 1 to the Strata Schemes Management Act 2015. 38 (7) A strata renewal plan is not given any force or effect merely because of a decision 39 made under subsection (5). 40 173 Copy of plan to be given to owners 41 (1) If the owners corporation decides by special resolution under section 172 (5) to give 42 the strata renewal plan to the owners for their consideration, the secretary of the 43 owners corporation must within 14 days give a copy of the plan to each owner. 44 Page 75 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (2) The copy of the plan must be accompanied by the information or documents 1 prescribed by the regulations. 2 174 Notice of owner's decision to support plan 3 (1) An owner may, at least 60 days after receiving a copy of the strata renewal plan but 4 before the plan lapses, give the returning officer for the plan a notice in the approved 5 form (a support notice) that: 6 (a) states the owner supports the plan, and 7 (b) is signed by the owner and each registered mortgagee or covenant chargee of 8 the owner's lot. 9 (2) If a lot is owned by more than one person, each of those persons must sign the support 10 notice. 11 (3) The signature of an owner, registered mortgagee or covenant chargee (the relevant 12 person) must be witnessed by a person who: 13 (a) is at least 18 years of age, and 14 (b) is not a party to the proposed collective sale or redevelopment to which the 15 support notice relates. 16 (4) A notice referred to in subsection (1) has effect as a support notice under this Part in 17 relation to the owner's lot on the day it is given to the returning officer. 18 (5) In giving a support notice, an owner agrees to participate in the proposed collective 19 sale or redevelopment under the strata renewal plan to which the notice relates. 20 (6) In signing a support notice, a mortgagee or covenant chargee merely consents to the 21 owner giving the notice in relation to the owner's lot and is not bound in any way by 22 the strata renewal plan. 23 (7) The returning officer must: 24 (a) keep a record showing the number of lots for which a support notice has been 25 given and is in effect, and 26 (b) if asked by an owner, advise the owner of the number of lots for which a 27 support notice has been given and is in effect. 28 Note. A support notice may be withdrawn under section 175, and ceases to have effect if it is 29 withdrawn. 30 175 Withdrawal of support notice 31 (1) An owner who has given a support notice for a strata renewal plan may, by notice in 32 the approved form given to the returning officer for the plan, withdraw the support 33 notice. 34 (2) However, an owner cannot withdraw a support notice after the day a notice has been 35 given under section 176 (2). 36 (3) If a support notice is withdrawn, it ceases to have effect as a support notice under this 37 Part in relation to the owner's lot on the day the notice of the withdrawal is given to 38 the owners corporation. 39 176 Notice if required level of support obtained 40 (1) If the required level of support for a strata renewal plan is obtained before the plan 41 lapses the returning officer for the plan must give written notice of that fact to the 42 secretary of the owners corporation. 43 (2) The secretary must, within 14 days after receiving the notice give written notice that 44 the required level of support for the strata renewal plan has been obtained to: 45 Page 76 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (a) each owner of a lot in the strata scheme, and 1 (b) the Registrar-General. 2 (3) On receiving the notice, the Registrar-General must make appropriate recordings in 3 the folio for the common property in the strata scheme to show that the scheme is the 4 subject of a strata renewal plan. 5 (4) If requested by the Registrar-General, the owners corporation must give the 6 Registrar-General the information about the strata renewal plan the 7 Registrar-General requires to make the recordings referred to in subsection (3). 8 (5) On and from the making of the recordings referred to in subsection (3), a support 9 notice that is in effect for the strata renewal plan is taken to have been given under 10 this Part by any subsequent owner, registered mortgagee or covenant chargee of the 11 lot in relation to which the support notice was given. 12 177 Lapsing of plan 13 (1) A strata renewal plan lapses if: 14 (a) the owners corporation decides under this Division not to give the plan to the 15 owners for their consideration, or 16 (b) within 3 months after the day the owners corporation decided to give the plan 17 to the owners for their consideration, the required level of support for the plan 18 has not been obtained, or 19 (c) the owners corporation decides not to apply to the court under Division 6 for 20 an order to give effect to the plan, or 21 (d) if an application is made under Division 6 to the court for an order to give 22 effect to the plan--the court decides not to make the order. 23 (2) If a strata renewal plan lapses under subsection (1), it ceases to have any force or 24 effect for the purpose of this Part. 25 (3) The owners corporation must, as soon as practicable after the strata renewal plan 26 lapses, give written notice of that fact to the Registrar-General. 27 (4) On receiving the notice, the Registrar-General must make appropriate recordings in 28 the folio for the common property in the strata scheme to show that the scheme is no 29 longer the subject of a strata renewal plan. 30 Division 6 Applying for orders to give effect to strata renewal plans 31 178 Decision to apply for order 32 (1) If the required level of support for a strata renewal plan for a strata scheme is 33 obtained: 34 (a) the secretary of the owners corporation, or a member of the strata renewal 35 committee, must convene a general meeting of the owners corporation for the 36 purpose of deciding whether to apply to the court for an order to give effect to 37 the plan, and 38 (b) the owners corporation may, by resolution, decide to apply to the court for the 39 order. 40 (2) To remove doubt, an application for an order may be made by the owners corporation 41 even if an owner of a lot in the strata scheme at the time the application is made is 42 not an owner who gave a support notice for the strata renewal plan. 43 Note. Under section 176 (5), a subsequent owner of a lot may be taken to have given a 44 support notice under this Part. 45 Page 77 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (3) However, the owners corporation must not apply for an order unless it is satisfied that 1 the strata renewal plan complies with section 170. 2 (4) The secretary of the owners corporation must, within 14 days after a decision is made 3 to apply for an order, give written notice of the decision to each tenant of a lot in the 4 strata scheme whose name has been notified to the owners corporation as a tenant of 5 the lot in accordance with the Strata Schemes Management Act 2015. 6 179 Application for order 7 (1) An application for an order to give effect to the strata renewal plan must be 8 accompanied by the following: 9 (a) a copy of the plan, 10 (b) a copy of each support notice that is in effect under this Part for the plan, 11 (c) the names of each dissenting owner and each registered mortgagee and 12 covenant chargee of a dissenting owner's lot, 13 (d) a declaration given by the owners corporation identifying the steps taken in 14 preparing the plan and obtaining the required level of support in accordance 15 with this Part, 16 (e) if the plan is for a collective sale of a strata scheme: 17 (i) a declaration given by the purchaser, if known, disclosing the nature of 18 any relationship, whether personal or commercial, the purchaser may 19 have with the owner of any lot in the scheme, and 20 (ii) a report of an independent valuer that includes details of the market 21 value of the whole building and its site and details of the compensation 22 value of each lot, 23 (f) if the plan is for a redevelopment of a strata scheme: 24 (i) a declaration given by the developer disclosing the nature of any 25 relationship, whether personal or commercial, the developer may have 26 with an owner of any lot in the scheme, and 27 (ii) a document specifying the amount to be paid to each dissenting owner 28 for the owner's lot, and 29 (iii) a report of an independent valuer that includes details of the market 30 value of the whole building and its site and details of the compensation 31 value of each dissenting owner's lot, and 32 (iv) a document detailing enough financial information to show there is a 33 secure source of finance for the carrying out of the proposed 34 redevelopment under the plan, 35 (g) any other information or document about the proposed collective sale or 36 redevelopment prescribed by the regulations. 37 (2) Notice of the application must be served, in accordance with rules of court, on: 38 (a) each owner of a lot in the strata scheme, and 39 (b) each registered mortgagee or covenant chargee of a dissenting owner's lot, and 40 (c) if the strata renewal plan is for a collective sale of a strata scheme--the 41 proposed purchaser (if known), and 42 (d) if the strata renewal plan is for a redevelopment of a strata scheme--the local 43 council and the proposed developer (if known), and 44 (e) any other person directed by the court. 45 Page 78 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes 180 Objection to application 1 (1) Any of the following persons may file an objection to the application for an order to 2 give effect to the strata renewal plan: 3 (a) a dissenting owner, 4 (b) a person on whom notice of the application must be served under 5 section 179 (2) (b)-(e). 6 (2) The objection must be filed in the court within 21 days after notice of the application 7 is served on the person filing the objection. 8 (3) A person who files an objection need not be a party in proceedings before the court 9 relating to the strata renewal plan. 10 Division 7 Orders to give effect to strata renewal plans 11 181 Hearing of application 12 (1) The court must hear and dispose of an application for an order in proceedings before 13 the court. 14 (2) If the court orders mediation or arranges a conciliation conference in relation to the 15 application: 16 (a) the court may terminate the mediation or conference at any time and hear, or 17 continue to hear, the proceedings, or 18 (b) any party to the mediation or conference may, at least 90 days after the day the 19 first mediation or conference session starts, ask the court to terminate the 20 mediation or conference and hear, or continue to hear, the proceedings, or 21 (c) if the parties reach an agreement at mediation or the conciliation conference 22 and the strata renewal plan is varied under the agreement--the court may hear, 23 or continue to hear, the proceedings in relation to the varied plan. 24 (3) The court must hear, or continue to hear, the proceedings whether or not the parties 25 reach an agreement at mediation or a conciliation conference. 26 (4) If a strata renewal plan is varied at mediation or a conciliation conference, the varied 27 plan is taken to be the strata renewal plan under this Act. 28 (5) However, the court must not make an order in relation to a strata renewal plan that is 29 varied at mediation or a conciliation conference unless: 30 (a) written agreement to the variation has been given by the owner of each lot in 31 relation to which a support notice has been given for the plan, and 32 (b) written notice of the variation has been served by the owners corporation on 33 the following (unless otherwise directed by the court): 34 (i) each dissenting owner, 35 (ii) each person on whom notice of the application must be served under 36 section 179 (2) (b)-(e). 37 (6) Any of the following persons may be joined as a party to the proceedings: 38 (a) a person who has filed an objection to the application and applies to be a party 39 to the proceedings, 40 (b) a person directed by the court to be joined. 41 (7) In this section: 42 conciliation conference means a conciliation conference under section 34 of the 43 Land and Environment Court Act 1979. 44 Page 79 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes mediation means mediation in accordance with the Civil Procedure Act 2005. 1 182 Decision of court 2 (1) The court must make an order giving effect to the strata renewal plan if satisfied of 3 the following matters: 4 (a) the relationship, if any, between the owners of lots and the purchaser or a 5 developer has not prevented the plan being prepared in good faith, 6 (b) the steps taken in preparing the plan and obtaining the required level of support 7 were carried out in accordance with this Act, 8 (c) all notices required to be served under sections 179 and 181 have been served, 9 (d) if the plan is for a collective sale--the proposed distribution of the proceeds of 10 sale apportioned to each lot is not less than the compensation value of the lot 11 and the terms of the settlement under the plan are just and equitable in all the 12 circumstances, 13 (e) if the plan is for a redevelopment--the amount to be paid to a dissenting owner 14 is not less than whichever of the following is greater: 15 (i) the compensation value of the owner's lot, 16 (ii) an amount equal to the total consideration that would accrue to the 17 dissenting owner under the plan in relation to the redevelopment and the 18 owner's lot if that owner had given a support notice for the plan, 19 (f) if the plan is for a redevelopment--the terms of the settlement under the plan, 20 as those terms apply to any dissenting owner, are just and equitable in all the 21 circumstances, 22 (g) any other matter prescribed by the regulations. 23 (2) The court may, on its own initiative, vary the strata renewal plan and make an order 24 giving effect to the varied plan if satisfied of the matters referred to in subsection (1). 25 (3) However, the court cannot vary a strata renewal plan under subsection (2) unless: 26 (a) the variation is of a minor nature that does not affect the plan in any substantial 27 way, and 28 (b) written agreement to the variation has been given by the owner of each lot in 29 relation to which a support notice for the plan has been given. 30 (4) The court must not make an order giving effect to the strata renewal plan if the court 31 is not satisfied about the matters referred to in subsection (1). 32 (5) The court must give written reasons for its decision to make, or not to make, an order. 33 (6) This section applies subject to section 181 (5). 34 183 Court order and directions 35 (1) If the court makes an order giving effect to a strata renewal plan for a strata scheme, 36 the order may include directions about any of the following matters: 37 (a) the termination of the scheme, including, for example, the day on which the 38 scheme is to be terminated and the day on which vacant possession of lots and 39 common property in the scheme is to be given, 40 (b) the winding up of the owners corporation of the scheme, 41 (c) the discharge of the liabilities of the owners corporation, 42 (d) the persons liable to contribute amounts required for the discharge of the 43 liabilities of the owners corporation and the proportionate liability of the 44 persons, 45 Page 80 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (e) the distribution of the assets of the owners corporation and the proportionate 1 entitlement of each person under the distribution, 2 (f) any other matter prescribed by the regulations. 3 (2) The owners corporation must lodge the order for registration within 7 days after it is 4 made. 5 (3) The Registrar-General must record the order on the folio for the common property 6 and for each lot in the strata scheme. 7 (4) The order has effect under this Part when the Registrar-General makes the record 8 under subsection (3). 9 184 Effect of order relating to collective sale 10 (1) This section applies if the court makes an order giving effect to a strata renewal plan 11 for a collective sale of a strata scheme. 12 (2) The owner of each lot in the strata scheme must sell the owner's lot in accordance 13 with the strata renewal plan and the order. 14 (3) The strata scheme is terminated on: 15 (a) the day on which all the dealings effecting the transfer of all lots and common 16 property in the scheme are registered, or 17 (b) if the order specifies a later day for that purpose--the later day. 18 (4) On termination of the strata scheme: 19 (a) the owners corporation is dissolved, and 20 (b) the rights and liabilities of the owners corporation vest in the purchaser, unless 21 the order otherwise provides, and 22 (c) any legal proceedings begun by or against the owners corporation may be 23 completed by or against the purchaser, and 24 (d) the purchaser must give the Registrar-General notice of the termination in the 25 approved form. 26 (5) On receiving the notice, the Registrar-General must: 27 (a) cancel the folios for the lots and common property in the strata scheme, and 28 (b) create a folio for the land in the former parcel, and 29 (c) record in the Register the matters the Registrar-General considers appropriate 30 to give effect to the order. 31 (6) A lease of a lot in the strata scheme is terminated on the day stated in the strata 32 renewal plan for giving vacant possession of the lot to the purchaser or on such later 33 day as may be specified in the order. 34 (7) Subject to this Part, the termination of a lease under this section does not affect a right 35 or remedy a person may have under the lease. 36 Note. It is expected that leases would generally be terminated in accordance with the terms of 37 the lease (or under legislation such as Division 2 of Part 5 of the Residential Tenancies Act 38 2010) and not under this section. 39 185 Effect of order relating to redevelopment 40 (1) This section applies if the court makes an order giving effect to a strata renewal plan 41 for a redevelopment of a strata scheme. 42 (2) Each dissenting owner of a lot in the strata scheme must sell the owner's lot in 43 accordance with the strata renewal plan and the order. 44 Page 81 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (3) The strata scheme is terminated on the day stated in the order for that purpose. 1 (4) On termination of the strata scheme: 2 (a) the owners corporation is dissolved, and 3 (b) the rights and liabilities of the owners corporation vest in the developer or the 4 former owners in accordance with the strata renewal plan and the order, and 5 (c) land in the former parcel vests in the former owners as tenants in common in 6 shares proportional to the unit entitlement of their former lots, unless the strata 7 renewal plan otherwise provides, and 8 (d) any legal proceedings begun by or against the owners corporation may be 9 completed by or against the developer, and 10 (e) the developer must give the Registrar-General notice of the termination in the 11 approved form. 12 (5) On receiving the notice, the Registrar-General must: 13 (a) cancel the folios for the lots and common property in the strata scheme, and 14 (b) create a folio for the land in the former parcel, and 15 (c) record in the Register the matters the Registrar-General considers appropriate 16 to give effect to the order. 17 (6) The order does not permit development to be carried out in contravention of this Act 18 or any other Act or law. 19 (7) A lease of a lot in the strata scheme is terminated on the day stated in the strata 20 renewal plan for giving vacant possession of the lot to the developer or on such later 21 day as may be specified in the order. 22 (8) Subject to this Part, the termination of a lease under this section does not affect a right 23 or remedy a person may have under the lease. 24 Note. It is expected that leases would generally be terminated in accordance with the terms of 25 the lease (or under legislation such as Division 2 of Part 5 of the Residential Tenancies Act 26 2010) and not under this section. 27 (9) In this section: 28 former owner does not include a dissenting owner. 29 186 Ancillary orders 30 (1) The court may make an order to provide for any ancillary or consequential matter (an 31 ancillary order) that it considers appropriate or necessary to ensure the effectiveness 32 of the order giving effect to a strata renewal plan. 33 (2) Without limiting subsection (1), an ancillary order may include directions about the 34 following matters: 35 (a) the appointment of a trustee for the sale of an owner's lot, 36 (b) the vesting of an owner's lot in the trustee for the purpose of selling the lot and 37 distributing the proceeds of sale to the owner, 38 (c) the delivery of an owner's certificate of title for the owner's lot to the trustee, 39 (d) the distribution of the assets of the owners corporation and the proportionate 40 entitlement of each person under the distribution, 41 (e) the reallocation of unit entitlements among the lots that are subject to the strata 42 scheme for a reason set out in section 236 (1) of the Strata Schemes 43 Management Act 2015, 44 (f) the payment of compensation to a person because of the termination of a lease 45 under section 184 (6) or 185 (7). 46 Page 82 Strata Schemes Development Bill 2015 [NSW] Part 10 Strata renewal process for freehold strata schemes (3) An ancillary order may be made when or at any time after the order giving effect to 1 the strata renewal plan is made. 2 (4) An ancillary order may be made on application by any person with the leave of the 3 court. 4 187 Order attaches to land and is binding 5 An order giving effect to a strata renewal plan and an ancillary order relating to that 6 order: 7 (a) attaches to the parcel for the strata scheme to which the plan relates, and 8 (b) binds the owners corporation of the strata scheme and each person who for the 9 time being is: 10 (i) an owner or registered mortgagee or covenant chargee of a lot in the 11 parcel, or 12 (ii) the purchaser or a developer under the plan, and 13 (c) binds any person claiming through or under or in trust for or in succession to 14 an owner, or who is a subsequent owner or occupier to the owner, of a lot in 15 the scheme. 16 Division 8 Miscellaneous 17 188 Costs 18 (1) Unless the court otherwise orders: 19 (a) the reasonable costs of proceedings for an application for an order to give 20 effect to a strata renewal plan that are incurred by a dissenting owner are 21 payable by the owners corporation, and 22 (b) the owners corporation cannot levy a contribution for any part of the costs on 23 a dissenting owner. 24 (2) The regulations may prescribe other matters for or with respect to the costs of 25 proceedings for an application for an order to give effect to a strata renewal plan. 26 189 Relationship between orders and strata renewal plans 27 If there is an inconsistency between a strata renewal plan and an order giving effect 28 to the plan or an ancillary order, the order and ancillary order prevail to the extent of 29 the inconsistency. 30 190 Limitation on submitting strata renewal proposal 31 (1) If a strata renewal proposal or a strata renewal plan for a strata renewal proposal 32 lapses under this Part, a person cannot give the proposal, or another strata renewal 33 proposal that is substantially similar to that proposal, to an owners corporation within 34 12 months after the day the proposal or plan lapses. 35 (2) An owners corporation is not required to deal with a strata renewal proposal under 36 this Part if it is given in contravention of this section. 37 Page 83 Strata Schemes Development Bill 2015 [NSW] Part 11 Rates and charges relating to parcels Part 11 Rates and charges relating to parcels 1 191 Definition 2 In this Part: 3 rate means a rate payable under the Local Government Act 1993. 4 192 Rating of lots 5 (1) A rate on a rateable parcel or a rateable part of a parcel must not be made or levied 6 on the owners corporation but, subject to this section, must be made and levied in 7 relation to each lot comprised in the parcel as if: 8 (a) the owner of each lot were the owner in fee simple in possession of the lot and 9 it were a separate parcel of land having a value equal to the appropriate value 10 apportioned to it under paragraph (c), and 11 (b) the owner were, subject to any exemptions or concessions applying to the 12 owner or to the owner's lot, liable for any rate made and levied by the rating 13 authority on the owners of land, and 14 (c) the value of each lot were an amount that bears to the corresponding value 15 worked out in accordance with section 26A of the Valuation of Land Act 1916 16 of the rateable parcel or the rateable part of the parcel, (after deducting from 17 the corresponding value any allowance applicable under Division 3 of Part 1B 18 of the Valuation of Land Act 1916) the same proportion as the unit entitlement 19 of that lot bears to the aggregate unit entitlement. 20 (2) If part only of a lot is rateable for any rate, the rate in relation to the lot must be made 21 and levied on the rateable part as if the value of that part were an amount that bears 22 to the appropriate value of the lot, worked out under subsection (1) (c), the same 23 proportion as the rental value of the rateable part bears to the rental value of the lot. 24 (3) A reference in this section to a rateable parcel, or a rateable part of a parcel, in 25 relation to any rate, is a reference to a parcel or part of a parcel that is rateable as to 26 that rate or would be so rateable but for any exemption or concession applicable to 27 any portion of that parcel or part (not being, in the case of a rate for water, sewerage 28 or drainage services, an exemption or concession applicable to that portion by reason 29 of its situation in relation to the services). 30 (4) In this section: 31 rating authority means an authority authorised to make and levy rates on land. 32 value, in relation to a parcel or a lot, means land value, improved value, improved 33 capital value or assessed annual value. 34 193 Certain lots not rateable 35 (1) This section applies if, for the purpose of effecting a resumption referred to in Part 7: 36 (a) a strata plan of subdivision has been registered, or 37 (b) a plan has been registered under the Conveyancing Act 1919. 38 (2) Unless the resumption has been effected, a rate may not be made or levied on a lot in 39 the strata plan of subdivision or in the registered plan. 40 (3) This section does not prevent a rate from being made or levied on land of which a lot 41 referred to in subsection (2) forms part. 42 194 Charge or fee for services 43 A charge or fee for water, sewerage, drainage or effluent services, other than a 44 stormwater management service within the meaning of the Local Government Act 45 Page 84 Strata Schemes Development Bill 2015 [NSW] Part 11 Rates and charges relating to parcels 1993, rendered in relation to a parcel or part of a parcel otherwise than exclusively 1 for the use and benefit of a particular lot: 2 (a) must be worked out as if any rates in relation to the lots comprised in the parcel 3 were payable by the owners corporation as the rateable person under the Local 4 Government Act 1993 for the parcel, and 5 (b) is payable by the owners corporation. 6 Page 85 Strata Schemes Development Bill 2015 [NSW] Part 12 General Part 12 General 1 195 Duty not payable for determination of lease 2 No duty is payable under the Duties Act 1997 in relation to the determination or 3 partial determination of a lease under this Act. 4 196 Notice to produce electronic form plans and other documents 5 (1) As soon as practicable after a written demand requiring its production is served on a 6 person who has lodged a plan or other document in electronic form for the purposes 7 of this Act, the person is required to give the Registrar-General: 8 (a) an electronically formatted version or a hard copy version of the plan, as 9 directed by the Registrar-General, or the original hard copy version of the 10 other document, as the plan or document was when it was lodged 11 electronically, and 12 (b) for a plan--the approved form for signatures on which the signatures, seals, 13 certificates, consents or other approvals required to authenticate, or to 14 authorise the registration or recording of, the plan were endorsed. 15 (2) In this section: 16 written demand means a written demand of the Registrar-General served: 17 (a) for a plan or other document lodged for registration or recording--while the 18 plan or other document is lodged, or 19 (b) for a plan or other document lodged other than for registration or recording-- 20 before the period prescribed by the regulations (or a shorter period agreed to 21 by the Registrar-General) has expired after the plan or other document was 22 lodged, or 23 (c) for a plan or other document that is registered or recorded--before the period 24 prescribed by the regulations (or a shorter period agreed to by the 25 Registrar-General) has expired after the plan or other document was registered 26 or recorded. 27 197 Application of Act to electronic form plans and other documents 28 (1) This section applies to: 29 (a) a plan lodged for the purposes of this Act, and 30 (b) another document, other than a certificate of title or an office copy of a court 31 order, that: 32 (i) is required under this Act or another Act to be lodged with the plan, or 33 (ii) is of a class prescribed by the regulations as a document that may be 34 lodged in electronic form. 35 (2) A reference in this Act: 36 (a) to a plan or another document includes a reference to an electronic data file 37 containing a plan or another document in an electronic form, and 38 (b) to the lodging of a plan or another document includes a reference to the 39 electronic lodging of a plan or another document in an electronic form 40 approved by the Registrar-General. 41 (3) If a plan is lodged electronically, any other document that is required to be lodged 42 with the plan must also be lodged electronically in an electronic form approved by 43 the Registrar-General, other than: 44 (a) a certificate of title or an office copy of a court order, and 45 Page 86 Strata Schemes Development Bill 2015 [NSW] Part 12 General (b) another document excepted from this requirement by the regulations under 1 this Act or another Act or by the Registrar-General. 2 (4) A signature, seal, certificate, consent or other approval required to authenticate, or to 3 authorise the registration or recording of, a plan proposed to be lodged in electronic 4 form must be endorsed on an administration sheet. 5 (5) When a plan referred to in subsection (4) is lodged, the administration sheet must also 6 be lodged electronically in an electronic form approved by the Registrar-General. 7 (6) This Act applies in relation to plans and other documents lodged in electronic form 8 in the same way as it applies to other plans and documents, subject to any 9 modifications prescribed by the regulations, the Conveyancing Act 1919, the Real 10 Property Act 1900 or the regulations under those Acts. 11 198 Recordings in Register or folios--generally 12 If a provision of this Act requires or provides for the Registrar-General to record a 13 thing in the Register or a folio and the provision does not specify how it is to be 14 recorded, the Registrar-General may make the record by recording the matters about 15 the thing the Registrar-General considers appropriate. 16 199 Act to bind Crown 17 (1) This Act binds the Crown in right of New South Wales and, in so far as the legislative 18 power of the Parliament of New South Wales permits, the Crown in all its other 19 capacities. 20 (2) However, a requirement under this Act for an administration sheet for a plan or notice 21 of conversion to include a strata certificate does not apply in relation to a plan or 22 notice lodged by the Crown. 23 200 Delegation by Secretary 24 The Secretary may delegate the exercise of any function of the Secretary under this 25 Act (other than this power of delegation) to: 26 (a) any person employed in the Department, or 27 (b) any person, or any class of persons, authorised for the purposes of this section 28 by the regulations. 29 201 Proceedings for offences 30 Proceedings for an offence under this Act or the regulations may be dealt with 31 summarily. 32 202 Regulations--general 33 (1) The Governor may make regulations, not inconsistent with this Act, for or with 34 respect to any matter that by this Act is required or permitted to be prescribed or that 35 is necessary or convenient to be prescribed for carrying out or giving effect to this 36 Act. 37 (2) Without limiting subsection (1), the Governor may make regulations for or with 38 respect to any of the following: 39 (a) the preparation of plans and documents for the purposes of this Act, 40 (b) the plans and documents that under this Act may be lodged in the office of the 41 Registrar-General, 42 (c) the registration in that office of plans and documents, 43 Page 87 Strata Schemes Development Bill 2015 [NSW] Part 12 General (d) the fees to be paid in relation to the lodgment and registration in that office of 1 plans and documents and the supply by that office of copies of registered or 2 other plans and documents, 3 (e) the forms to be used for the purposes of this Act. 4 (3) A regulation may impose a penalty not exceeding 2 penalty units for an offence under 5 the regulation. 6 203 Repeal of Acts 7 The Strata Schemes (Freehold Development) Act 1973 and the Strata Schemes 8 (Leasehold Development) Act 1986 are repealed. 9 204 Review of Act 10 (1) The Minister is to review this Act to determine whether the policy objectives of the 11 Act remain valid and whether the terms of the Act remain appropriate for securing 12 the objectives. 13 (2) The review is to be undertaken as soon as possible after the period of 5 years from 14 the date of assent to this Act. 15 (3) A report on the outcome of the review is to be tabled in each House of Parliament 16 within 12 months after the end of the period of 5 years. 17 Page 88 Strata Schemes Development Bill 2015 [NSW] Schedule 1 Requirements for plans Schedule 1 Requirements for plans 1 (Section 4 (1), definition of "surveyor's certificate") 2 1 Floor plans 3 (1) Each wall, the inner surface or any part of which corresponds substantially to a line 4 shown on the floor plan as a boundary of a proposed lot, must exist. 5 (2) Each floor or ceiling, the upper or under surface or any part of which forms a 6 boundary of a proposed lot, must exist. 7 (3) Each wall, floor, ceiling or common infrastructure, by reference to which any 8 boundary of a proposed lot is determined, must exist. 9 2 Location plans--no part strata parcel 10 (1) This clause applies if the proposed parcel will not be a part strata parcel. 11 (2) The building erected on the land comprising the proposed parcel and each proposed 12 lot shown on the location plan must be wholly within the perimeter of that land. 13 (3) This clause does not apply to so much of any encroachment that is an encroachment 14 on to a public place or an encroachment by the building on to land other than a public 15 place. 16 3 Location plans for part strata parcels 17 (1) This clause applies if the proposed parcel will be a part strata parcel. 18 (2) The proposed parcel must include part of a building and another part of the building 19 must be outside the proposed parcel. 20 (3) The proposed parcel and that building must be wholly within the perimeter of the site 21 of the building. 22 (4) Each part of that building and so much, if any, of the site as constitute the proposed 23 lots and common property, if any, must be wholly within the proposed parcel. 24 (5) Subclauses (3) and (4) do not apply to so much of any encroachment that is an 25 encroachment on to a public place or an encroachment by the building on to land 26 other than a public place. 27 4 Location plans--encroachments on private land 28 If the building encroaches on to land other than a public place, an appropriate 29 easement must exist or be created in accordance with section 88B of the 30 Conveyancing Act 1919 on registration of the proposed strata plan. 31 Page 89 Strata Schemes Development Bill 2015 [NSW] Schedule 2 Requirements for schedules of unit entitlement Schedule 2 Requirements for schedules of unit entitlement 1 (Section 4 (1), definition of "valuer's certificate") 2 1 Definitions 3 In this Schedule: 4 market value basis, in relation to the proposed unit entitlement of a lot or 5 development lot, means the basis for determining the value of the lot or development 6 lot prescribed by the regulations. 7 valuation day, in relation to apportioning unit entitlements, means the day prescribed 8 by the regulations as the valuation day for the purposes of the clause in which the 9 term is used. 10 2 Schedule of unit entitlement for strata plan 11 (1) A schedule of unit entitlement for a strata scheme that does not include a 12 development lot must show as whole numbers: 13 (a) the aggregate unit entitlement of all lots, and 14 (b) apportioned on a market value basis at the valuation day and totalling the 15 aggregate unit entitlement of all lots, the proposed unit entitlement of each lot. 16 (2) A schedule of unit entitlement for a strata scheme that includes a development lot 17 must show as whole numbers: 18 (a) the aggregate unit entitlement of all lots, whether or not a development lot, and 19 (b) apportioned on the basis of land value (within the meaning of the Valuation of 20 Land Act 1916) and totalling the aggregate unit entitlement referred to in 21 paragraph (a): 22 (i) the proposed unit entitlement of each development lot, and 23 (ii) the aggregate proposed unit entitlement of all lots that are not 24 development lots, being the unit entitlement attributable to the residue 25 of the land in the proposed parcel, and 26 (c) apportioned on a market value basis at the valuation day and totalling the 27 proposed unit entitlement of all lots that are not development lots, the 28 proposed unit entitlement of each lot that is not a development lot. 29 3 Schedule of unit entitlement for strata plan of subdivision not involving common 30 property or development lot 31 (1) A schedule of unit entitlement for a proposed strata plan of subdivision altering the 32 boundaries of one or more lots to create only two or more different lots, other than a 33 plan to which clause 5 applies, must: 34 (a) show the proposed aggregate unit entitlement, and 35 (b) show as a whole number the proposed unit entitlement of: 36 (i) each lot comprised in the parcel that is not a lot the subject of the 37 proposed subdivision, and 38 (ii) each proposed lot. 39 (2) A number relating to a lot other than a proposed lot must bear to the proposed 40 aggregate unit entitlement the same proportion that the unit entitlement of the lot 41 bore, immediately before the plan was registered, to the aggregate unit entitlement. 42 (3) The sum of the numbers relating to the proposed lots must bear to the proposed 43 aggregate unit entitlement the same proportion that the unit entitlement or the sum of 44 Page 90 Strata Schemes Development Bill 2015 [NSW] Schedule 2 Requirements for schedules of unit entitlement the unit entitlements of the lot or lots the subject of the proposed subdivision bore, 1 immediately before the plan was registered, to the aggregate unit entitlement. 2 4 Schedule of unit entitlement for strata plan of subdivision involving common 3 property 4 A schedule of unit entitlement for a proposed strata plan of subdivision, other than a 5 plan to which clause 3 or 5 applies, must: 6 (a) show the proposed aggregate unit entitlement, and 7 (b) show as a whole number the proposed unit entitlement, apportioned on a 8 market value basis at the valuation day, of: 9 (i) each lot comprised in the parcel that is not a lot the subject of the 10 proposed subdivision, and 11 (ii) each proposed lot, and 12 (c) be accompanied by a certificate under the seal of the owners corporation 13 certifying that it has, by the special resolution referred to in section 55 (5) (a) 14 or 59 (c), agreed to each proposed unit entitlement and the proposed aggregate 15 unit entitlement shown in the schedule. 16 5 Schedule of unit entitlement for strata plan of subdivision for development lot 17 A schedule of unit entitlement for a proposed strata plan of subdivision for a 18 development lot must show as whole numbers: 19 (a) the current unit entitlement of the development lot intended to be subdivided, 20 and 21 (b) apportioned on a market value basis at the valuation day and totalling the unit 22 entitlement of the development lot, the proposed unit entitlement of each lot 23 or development lot to be created on registration of the plan. 24 Page 91 Strata Schemes Development Bill 2015 [NSW] Schedule 3 Covenants implied in strata development contracts Schedule 3 Covenants implied in strata development 1 contracts 2 (Section 81 (1)) 3 1 Warranted development 4 The developer agrees with the other parties jointly, and with each of them severally: 5 (a) that the developer must carry out the development, if any, described and 6 identified as "warranted development--proposed development subject to a 7 warranty" in the strata development contract, and 8 (b) that the developer must carry out the development in accordance with the 9 covenants set out and implied in the contract. 10 2 Permission to carry out warranted development and authorised proposals 11 The parties, other than the developer, jointly and severally agree with the developer 12 that the developer is permitted to carry out, in accordance with the covenants set out 13 or implied in the contract: 14 (a) the warranted development, if any, and 15 (b) other development described and identified as "authorised proposals-- 16 proposed development not subject to a warranty" in the contract. 17 3 Owners corporation expenses 18 The developer agrees with the owners corporation that the developer will pay the 19 reasonable expenses incurred by the owners corporation: 20 (a) in repairing damage to the common property caused in carrying out the 21 permitted development, other than damage due to normal wear and tear, and 22 (b) for any water, sewerage, drainage, gas, electricity, oil, garbage, conditioned air 23 or telephone service, and any other service prescribed by the regulations, used 24 in carrying out the permitted development, and 25 (c) for additional administrative costs connected with the permitted development, 26 including the cost of giving notice of and holding any meeting required to 27 obtain approval of a strata plan of subdivision, and 28 (d) for any amounts due under the strata management statement that are connected 29 with the carrying out of the permitted development. 30 4 Standard of development 31 The developer agrees with the other parties that: 32 (a) the standard of materials used, finishes effected, common property 33 improvements, landscaping, roadways and paths, and 34 (b) the heights of buildings, other structures and works and the density of 35 development, 36 in all development permitted to be carried out by the contract must not be inferior to 37 or substantially different from those of the completed buildings and other structures 38 and works forming part of the parcel, other than to the extent, if any, specified in the 39 contract. 40 5 Unauthorised use of the parcel 41 The developer agrees with the other parties that the developer will not use any part 42 of the parcel or cause any part of the parcel to be used other than: 43 Page 92 Strata Schemes Development Bill 2015 [NSW] Schedule 3 Covenants implied in strata development contracts (a) to the extent necessary to carry out the development permitted to be carried out 1 by the strata development contract, or 2 (b) to the extent specified in the contract. 3 6 Restoration of common property 4 The developer agrees with the other parties to make good, as soon as practicable, any 5 damage to the common property or any part of the building and its site that is not 6 subject to the strata scheme arising out of performance of the contract, whether or not 7 the contract contemplates or permits the damage. 8 7 Restoration of development lot 9 (1) The developer agrees with the other parties to make good, as soon as practicable, any 10 damage to a development lot or any part of the building and its site that is not subject 11 to the strata scheme arising out of performance of the contract, whether or not the 12 contract contemplates or permits the damage. 13 (2) For the purposes of this covenant, damage does not include damage necessarily 14 resulting from having carried out, in accordance with the contract, development that 15 is permitted by the contract to be carried out. 16 8 Additional covenants for vertical staged development 17 If the contract permits development to be carried out within a development lot that is 18 wholly or partly directly above or below a part of the parcel, or the building or site, 19 that is not a development lot, the developer agrees with the other parties: 20 (a) to minimise any disruption caused to other occupiers of the parcel or other 21 occupiers of a building of which the development lot forms part by the 22 carrying out of permitted development or otherwise, and 23 (b) to ensure that, while permitted development is being carried out, shelter and 24 subjacent and lateral support, consistent with proper engineering and building 25 practices, are provided to other parts of the parcel, or other parts of the building 26 and its site, that are capable of being sheltered or of enjoying the support, and 27 (c) to keep the developer insured, while permitted development is being carried 28 out, under a policy of indemnity (that complies with the matters prescribed by 29 the regulations) with an approved insurer within the meaning of the Strata 30 Schemes Management Act 2015 against claims for damage to property, or for 31 death or personal injury, arising out of or resulting from the carrying out of 32 permitted development. 33 Page 93 Strata Schemes Development Bill 2015 [NSW] Schedule 4 Strata management statements Schedule 4 Strata management statements 1 (Section 100) 2 1 Form of strata management statement 3 A strata management statement must include the information required by the 4 regulations and must not be inconsistent with: 5 (a) the conditions imposed on a planning approval relating to the site of the 6 building to which the statement relates, or 7 (b) this Act or any other Act or law. 8 2 Matters that must be included 9 (1) A strata management statement must provide for: 10 (a) the establishment and composition of a building management committee and 11 its office holders, and 12 (b) the functions of the committee and the office holders in managing the building 13 and its site, and 14 (c) the way in which the statement may be amended, and 15 (d) the settlement of disputes, or the rectification of complaints, about the 16 management of the building or its site, whether by requiring reference of 17 disputes or complaints to the Secretary or Tribunal or, with the person's 18 consent, to any other person for a recommendation or decision or otherwise, 19 and 20 (e) the fair allocation of the costs of shared expenses relating to parts of the 21 building, and 22 (f) a review process to ensure that the allocation of those costs remains fair with 23 any such review taking place as soon as practicable after any change in the 24 shared facilities or services (including any change in the use of those shared 25 facilities or services), with at least one such review occurring every 5 years 26 even if no such change has occurred, and 27 (g) the manner in which notices and other documents may be served on the 28 committee. 29 (2) A strata management statement must include details of the method used to apportion 30 the costs of shared expenses referred to in subclause (1) (e). 31 (3) Nothing in a strata management statement requires the Secretary or the Tribunal to 32 do anything without the consent of the Secretary or the Tribunal. 33 (4) In this clause, Tribunal means the Civil and Administrative Tribunal. 34 3 Building management committee 35 (1) Subject to subclauses (2) and (3), the members of the building management 36 committee are: 37 (a) each owners corporation for part of the building, and 38 (b) each person who holds: 39 (i) an estate in fee simple in a part of the building or its site that does not 40 form part of a part strata parcel, or 41 (ii) if the strata scheme is a leasehold strata scheme--a leasehold estate, 42 directly from the person who holds an estate in fee simple, in a part of 43 the building or its site that does not form part of a part strata parcel. 44 Page 94 Strata Schemes Development Bill 2015 [NSW] Schedule 4 Strata management statements (2) An owners corporation is not required to be a member of the building management 1 committee if the owners corporation decides, by special resolution, not to be a 2 member and all the other members agree. 3 (3) A person, other than an owners corporation, is not required to be a member of the 4 building management committee if the person, by written notice given to the 5 committee, asks not to be a member and all the other members agree. 6 (4) An owners corporation or other corporation that is a member of a building 7 management committee may be represented for the purposes of the committee by a 8 person appointed by, or selected in accordance with, a special resolution or by-law 9 made by the owners corporation or a resolution made by the other corporation. 10 (5) A person appointed or selected as mentioned in subclause (4) and whose term of 11 office as a representative has not expired or been terminated is, while representing 12 the owners corporation or other corporation for the purposes of the committee, taken 13 to be the owners corporation or other corporation. 14 4 Other matters 15 (1) A strata management statement may include provisions regulating, or providing for 16 the regulation of, any one or more of the following: 17 (a) the location, control, management, use and maintenance of a part of the 18 building or its site that is a means of access, 19 (b) the storage and collection of garbage on and from the various parts of the 20 building, 21 (c) meetings of the building management committee, 22 (d) the keeping of records of proceedings of the committee. 23 (2) A strata management statement may include particulars relating to any one or more 24 of the following: 25 (a) safety and security measures, 26 (b) the appointment of a managing agent, 27 (c) the control of unacceptable noise levels, 28 (d) prohibiting or regulating trading activities, 29 (e) service contracts, 30 (f) an architectural code to preserve the appearance of the building. 31 (3) This clause does not limit the matters that may be included in a strata management 32 statement. 33 (4) A strata management statement may incorporate plans and other instruments as part 34 of the statement. 35 5 Implied provisions 36 A strata management statement is taken to include the following provisions, except 37 to the extent that it provides otherwise: 38 (a) the building management committee must meet at least once a year, 39 (b) at least 7 days' notice of a meeting must be given to each person who is a 40 member of the committee (and notice may be given personally or by post or in 41 any way any other notice may be given to the person under this Act), 42 (c) the quorum for a meeting of the committee is a majority of the members, 43 (d) the decision of a majority of the members present and voting at a meeting of 44 the committee is the decision of the committee. 45 Page 95 Strata Schemes Development Bill 2015 [NSW] Schedule 5 Rights and obligations implied in certain easements Schedule 5 Rights and obligations implied in certain 1 easements 2 (Section 107 (2)) 3 1 Definitions 4 (1) In this Schedule: 5 pipes includes cables, tubes, wires and conduits of all kinds. 6 service has the same meaning as it has in section 107 (8). 7 (2) For the purposes of this Schedule, a reference to a person entitled to the benefit of a 8 right of vehicular or personal access, or of an easement for a specified service, is a 9 reference to: 10 (a) if a part strata parcel is the dominant tenement: 11 (i) an owner of a lot within the parcel, or 12 (ii) the owners corporation of the strata scheme, or 13 (iii) any person authorised by the owner or owners corporation, or 14 (iv) any person who is, under an Act, entitled to immediate possession of the 15 lot, or 16 (b) if a part strata parcel is the servient tenement: 17 (i) a person entitled to an estate or interest in possession in the dominant 18 tenement, or 19 (ii) if the strata scheme is a leasehold strata scheme--the lessor of the 20 scheme, or 21 (iii) any person authorised by a person referred to in subparagraph (i) or (ii). 22 2 Right of vehicular access 23 Each person entitled to the benefit of a right of vehicular access has at all times an 24 unrestricted right: 25 (a) to pass and repass, with or without vehicles, machinery, implements and other 26 equipment of any kind, over the roadways, ramps and land over which the 27 right of access is created, and 28 (b) to carry out an inspection of the roadways, ramps and land. 29 3 Right of personal access 30 Each person entitled to the benefit of a right of personal access has at all times an 31 unrestricted right: 32 (a) to pass and repass, without vehicles but with or without hand tools, hand 33 implements and other equipment capable of being carried by hand, over the 34 stairs, escalators, lifts, passages, corridors, shafts and other areas over which 35 the right of access is created, and 36 (b) to carry out an inspection of the stairs, escalators, lifts, passages, corridors, 37 shafts and other areas. 38 4 Obligations relating to rights of access 39 (1) If a right of vehicular or personal access is created to burden or benefit a part strata 40 parcel, the roadways, ramps, land, stairs, escalators, lifts, passages, corridors, shafts 41 and other areas to which the right relates must be maintained in good order and be 42 repaired: 43 Page 96 Strata Schemes Development Bill 2015 [NSW] Schedule 5 Rights and obligations implied in certain easements (a) by the owners corporation, or by another person shown in the instrument by 1 which the right is created, or in any instrument in an approved form by which 2 the instrument is varied, as having responsibility for the matters, or 3 (b) if an instrument referred to in paragraph (a) does not show who is responsible 4 for the matters, by the person or, if more than one, jointly by the persons 5 entitled to an estate or interest in possession in the dominant tenement. 6 (2) If an owners corporation or another person: 7 (a) fails to carry out a responsibility imposed by subclause (1), and 8 (b) at least 7 days have passed since the failure first arose, 9 the owners corporation or other person may take all lawful steps necessary to ensure 10 that the responsibility is carried out. 11 5 Easements for services 12 (1) Each person entitled to the benefit of an easement for a specified service has at all 13 times an unrestricted right: 14 (a) to the passage of the service, to any extent consistent with the rights of other 15 persons having the same or similar rights, along or through any existing line 16 of pipes or any existing apparatus that is for the time being within the burdened 17 land, other than when it is necessary to stop the service for essential 18 maintenance or repairs relating to the service, and 19 (b) to inspect the pipes or apparatus to which the easement relates, and 20 (c) for the purpose of maintaining the efficiency of the pipes or apparatus: 21 (i) to enter the part of the burdened land in relation to which the easement 22 is created by a route that is reasonable in the circumstances, and 23 (ii) to remain on the part of the burdened land for the time reasonably 24 necessary for the purpose of replacing, inspecting, cleaning, repairing, 25 maintaining or renewing the pipes or apparatus or any part of the pipes 26 or apparatus and of making reasonably necessary excavations. 27 (2) Subclause (1) (c) is subject to the conditions that: 28 (a) the burdened land is disturbed as little as possible, and 29 (b) any excavated surface is restored as nearly as possible to its original state, and 30 (c) any other damage attributable to the operations referred to in this clause is 31 repaired. 32 (3) In this clause, a reference to burdened land is a reference to: 33 (a) if a part strata parcel is the dominant tenement, so much of the following that 34 is not part of a parcel: 35 (i) the building, part of which is subject to the strata scheme, 36 (ii) the site of the building, or 37 (b) if a part strata parcel is the servient tenement, the parcel. 38 6 Obligations relating to an easement for the provision of services 39 (1) If an easement for services is created to burden or benefit a part strata parcel, the 40 pipes or apparatus to which the easement relates must be maintained in good order 41 and be repaired: 42 (a) by the owners corporation, or by another person shown in the instrument by 43 which the easement is created, or in any instrument in the approved form by 44 which the easement is varied, as having responsibility for the matters, or 45 Page 97 Strata Schemes Development Bill 2015 [NSW] Schedule 5 Rights and obligations implied in certain easements (b) if an instrument referred to in paragraph (a) does not show who is responsible 1 for the matters, by the person or, if more than one, jointly by the persons 2 entitled to an estate or interest in possession in the dominant tenement. 3 (2) If an owners corporation or another person: 4 (a) fails to carry out a responsibility imposed by subclause (1), and 5 (b) at least 7 days have passed since the failure first arose, 6 the owners corporation or other person may take all lawful steps necessary to ensure 7 that the responsibility is carried out. 8 7 Sharing of costs of maintenance and repair 9 (1) The costs of maintenance and repair of a right of vehicular or personal access or an 10 easement for services to which this Schedule applies are to be borne by the owners 11 corporation, lessor (in the case of a leasehold strata scheme) or other person: 12 (a) in the proportions specified in the instrument by which the easement was 13 created or, if the proportions have been varied, the proportions as varied, or 14 (b) if no proportions are specified in accordance with paragraph (a)--in equal 15 proportions. 16 (2) If a person (whether or not the owners corporation) incurs costs referred to in 17 subclause (1), the person may demand in writing the amount that the owners 18 corporation, lessor or other person referred to in the subclause is liable to contribute 19 to the costs. 20 (3) A demand made under subclause (2) must be accompanied by receipts or invoices or 21 copies of receipts or invoices that evidence the expenditure to which the demand 22 relates. 23 (4) If the owners corporation, lessor or other person fails to comply with a demand 24 within 7 days after it is made, the amount demanded may be recovered in a court of 25 competent jurisdiction as a debt due to the owners corporation, lessor or other person. 26 8 Ancillary rights and powers 27 An easement to which this Schedule applies carries with it the ancillary rights and 28 powers necessary to render the easement effective. 29 Page 98 Strata Schemes Development Bill 2015 [NSW] Schedule 6 Compensation payable on termination of leasehold strata scheme Schedule 6 Compensation payable on termination of 1 leasehold strata scheme 2 (Sections 138 (2) and 148 (2)) 3 For the purposes of sections 138 (2) and 148 (2), the formula is: 4 5 A = B - C - D 6 where: 7 A represents the value, at the date of termination of the leasehold strata scheme, of the 8 improvements attributable to a lot. 9 B represents the market value, at that date, of the lot, being the value of the lot at that date 10 calculated on the basis that the lot: 11 (a) is held for an estate in fee simple in possession, and 12 (b) may be used, whether or not only with planning approval, for any purpose the use of the lot 13 for which is not at that date prohibited. 14 C is obtained from the calculation of the formula: 15 16 U1 17 C = E  ------ Un 18 19 where: 20 E represents the site value, at that date, of the parcel the subject of that leasehold strata scheme, 21 being the value of the land included in that parcel at that date calculated on the basis that the land: 22 (a) is held for an estate in fee simple in possession, and 23 (b) may be used for the purpose of a site for the building or part of the building subject to the 24 scheme, 25 but excluding the value at that date of all improvements within the parcel. 26 U1 represents the unit entitlement of the lot. 27 Un represents the aggregate unit entitlement for that leasehold strata scheme. 28 D represents the part of factor "B", if any, attributable to the value, at that date, of improvements 29 to the lot effected by the lessor. 30 Page 99 Strata Schemes Development Bill 2015 [NSW] Schedule 7 Requirements for notices of meetings relating to strata renewal process Schedule 7 Requirements for notices of meetings relating to 1 strata renewal process 2 (Sections 158 (4), 160 (5) and 172 (2)) 3 1 Notice of general meeting to consider strata renewal proposal 4 A notice of a general meeting of an owners corporation to consider whether a strata 5 renewal proposal warrants investigation by a strata renewal committee must: 6 (a) clearly indicate that the purpose of the meeting is to consider a strata renewal 7 proposal, and 8 (b) identify the proposed purchaser, if known, or proposed developer under the 9 strata renewal proposal, and 10 (c) disclose the nature of any interest a proposed purchaser or proposed developer 11 may have in the strata scheme, and 12 (d) include a brief summary of the strata renewal proposal, and 13 (e) include a form of motion that the owners corporation decide whether the strata 14 renewal proposal warrants investigation by a strata renewal committee, and 15 (f) be accompanied by a complete copy of the strata renewal proposal. 16 2 Forms of motion for general meeting to establish strata renewal committee 17 For the purposes of section 160 (5), the matters are: 18 (a) determining the number of members of the strata renewal committee, and 19 electing its members, and 20 (b) a budget for, or limitations on amounts to be spent on, preparing a strata 21 renewal plan, and 22 (c) considering whether to delegate to the committee the authority to engage 23 persons to help it prepare a strata renewal plan. 24 3 Notice of general meeting to consider strata renewal plan 25 A notice of a general meeting of an owners corporation to consider a strata renewal 26 plan must: 27 (a) clearly indicate that the purpose of the meeting is to consider a strata renewal 28 plan, and 29 (b) identify the proposed purchaser, if known, or developer under the strata 30 renewal plan, and 31 (c) disclose the nature of any interest a proposed purchaser or developer may have 32 in the strata scheme, and 33 (d) include a brief summary of the strata renewal proposal, and 34 (e) include a form of motion that the owners corporation decide whether the strata 35 renewal plan should be given to the owners for their consideration, and 36 (f) be accompanied by a copy of the strata renewal plan. 37 Page 100 Strata Schemes Development Bill 2015 [NSW] Schedule 8 Savings, transitional and other provisions Schedule 8 Savings, transitional and other provisions 1 Part 1 General 2 1 Regulations 3 (1) The regulations may contain provisions of a savings or transitional nature consequent 4 on the enactment of this Act or any Act that amends this Act. 5 (2) Any such provision may, if the regulations so provide, take effect from the date of 6 assent to the Act concerned or a later date. 7 (3) The regulations under this Part have effect despite anything to the contrary in this 8 Schedule. 9 (4) The regulations under this Part may make separate savings and transitional 10 provisions or amend this Schedule to consolidate the savings and transitional 11 provisions. 12 (5) To the extent to which any such provision takes effect from a date that is earlier than 13 the date of its publication on the NSW legislation website, the provision does not 14 operate so as: 15 (a) to affect, in a manner prejudicial to any person (other than the State or an 16 authority of the State), the rights of that person existing before the date of its 17 publication, or 18 (b) to impose liabilities on any person (other than the State or an authority of the 19 State) in respect of anything done or omitted to be done before the date of its 20 publication. 21 Part 2 Provisions consequent on enactment of this Act 22 2 Definitions 23 In this Part: 24 former Act means the Strata Schemes (Freehold Development) Act 1973 or the 25 Strata Schemes (Leasehold Development) Act 1986. 26 repeal day means the day on which the former Acts are repealed. 27 3 General savings 28 (1) Any act, matter or thing done or omitted to be done under a provision of a former Act 29 and having any force or effect immediately before the commencement of a provision 30 of this Act that replaces that provision, is, on the commencement, taken to have been 31 done or omitted to be done under the provision of this Act. 32 (2) This clause does not apply to the extent that its application: 33 (a) is inconsistent with any other provision of this Schedule or a provision of a 34 regulation made under this Schedule, or 35 (b) would be inappropriate in a particular case. 36 4 Existing strata schemes 37 On the repeal day, each of the following is taken to be a strata scheme under this Act: 38 (a) a strata scheme in existence under the Strata Schemes (Freehold 39 Development) Act 1973 immediately before the repeal day, 40 (b) a leasehold strata scheme in existence under the Strata Schemes (Leasehold 41 Development) Act 1986 immediately before the repeal day. 42 Page 101 Strata Schemes Development Bill 2015 [NSW] Schedule 8 Savings, transitional and other provisions 5 Continuation of plans and notices 1 (1) On the repeal day, a plan or a notice of conversion that, immediately before the repeal 2 day, is registered under a former Act is taken to be registered under this Act. 3 (2) In this clause: 4 plan means a strata plan, strata plan of subdivision, strata plan of consolidation or 5 building alteration plan. 6 6 Continuation of certificates 7 A certificate given by a registered land surveyor in relation to a strata plan, strata plan 8 of subdivision or strata plan of consolidation under a former Act before the repeal 9 day, and certifying that requirements under the former Act about the plan have been 10 met, is taken to be a surveyor's certificate for the purposes of this Act. 11 7 Continuation of strata certificates 12 A strata certificate issued under a former Act and in effect on the repeal day is taken 13 to be a strata certificate issued under this Act. 14 8 Application of Part 10 to existing freehold strata schemes 15 (1) Part 10 applies to a freehold strata scheme in existence immediately before the 16 commencement of that Part only if the owners corporation has, by resolution, 17 decided the Part applies to the scheme. 18 (2) Despite subclause (1), a person may give a strata renewal proposal under Part 10 to 19 the owners corporation before the resolution is passed. 20 (3) The resolution may be passed before or at a general meeting convened to consider a 21 strata renewal proposal. 22 (4) If the resolution is passed at a general meeting convened to consider a strata renewal 23 proposal, it must be passed before the proposal is considered. 24 (5) The owners corporation must record details of the resolution on the strata roll. 25 (6) A resolution referred to in this clause cannot be revoked. 26 9 Existing proceedings 27 Any proceedings commenced but not determined or finalised under a provision of a 28 former Act are to be dealt with and determined as if the former Acts had not been 29 repealed. 30 10 Former lots in particular strata schemes 31 (1) This clause applies in relation to a lot in a strata scheme that has a boundary that: 32 (a) under section 4 (2) of the repealed Conveyancing (Strata Titles) Act 1961, was 33 the centre of a floor, wall or ceiling, and 34 (b) under clause 3 (1) of Part 1 of Schedule 4 to the Strata Schemes (Freehold 35 Development) Act 1973 was taken to be the upper surface of the floor, the inner 36 surface of the wall or the under surface of the ceiling, because the strata plan 37 or strata plan of resubdivision did not state otherwise. 38 (2) The boundary referred to in subclause (1) (a) is taken to continue to be the upper 39 surface of the floor, the inner surface of the wall or the under surface of the ceiling. 40 (3) This clause does not limit section 30 (2) (d) of the Interpretation Act 1987. 41 Page 102 Strata Schemes Development Bill 2015 [NSW] Schedule 8 Savings, transitional and other provisions (4) In this clause: 1 lot does not include any common infrastructure unless the common infrastructure 2 was specified in the strata plan or strata plan of subdivision under the Conveyancing 3 (Strata Titles) Act 1961 as forming a part of the lot. 4 Note. This clause continues, for the purposes of this Act, the effect of clause 3 (1) and (2) of 5 Part 1 of Schedule 4 to the Strata Schemes (Freehold Development) Act 1973. 6 11 Accredited certifiers 7 On the repeal day, a person who is an accredited certifier under a former Act 8 immediately before the repeal day is taken to be an accredited certifier for the 9 purposes of this Act. 10 Page 103 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts Schedule 9 Amendment of Acts 1 9.1 Building Professionals Act 2005 No 115 2 [1] Section 3 Definitions 3 Omit paragraph (c) from the definition of development certificate in section 3 (1). 4 Insert instead: 5 (c) a strata certificate issued under the Strata Schemes Development Act 6 2015. 7 [2] Section 12 Suspension of accreditation or imposition of conditions to protect the 8 public 9 Omit section 12 (1) (c). Insert instead: 10 (c) an accredited certifier has persistently contravened the provisions of the 11 Strata Schemes Development Act 2015 or the regulations under that Act 12 and is likely to continue to do so. 13 [3] Section 19 Definitions 14 Omit ", the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes 15 (Leasehold Development) Act 1986" from paragraph (b) of the definition of unsatisfactory 16 professional conduct in section 19 (1). 17 Insert instead "or the Strata Schemes Development Act 2015". 18 [4] Section 85 False representations 19 Omit ", the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes 20 (Leasehold Development) Act 1986" from section 85 (3). 21 Insert instead "or the Strata Schemes Development Act 2015". 22 9.2 Coastal Protection Act 1979 No 13 23 Section 37 Definitions 24 Omit "Division 1 of Part 2 of the Strata Schemes (Freehold Development) Act 1973 or 25 Division 1 of Part 2 of the Strata Schemes (Leasehold Development) Act 1986" from 26 section 37 (2) (c). 27 Insert instead "Part 2 of the Strata Schemes Development Act 2015". 28 9.3 Community Land Development Act 1989 No 201 29 [1] Section 3 Definitions 30 Omit "Strata Schemes (Freehold Development) Act 1973" from the definition of common 31 property in section 3 (1). 32 Insert instead "Strata Schemes Development Act 2015". 33 [2] Section 3 (1), definition of "community scheme" 34 Omit "Strata Schemes (Freehold Development) Act 1973" from paragraph (e) of the 35 definition. 36 Insert instead "Strata Schemes Development Act 2015". 37 Page 104 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [3] Section 3 (1), definition of "current plan" 1 Omit "Strata Schemes (Freehold Development) Act 1973". 2 Insert instead "Strata Schemes Development Act 2015". 3 [4] Section 3 (1), definition of "deposited plan" 4 Omit "Strata Schemes (Freehold Development) Act 1973". 5 Insert instead "Strata Schemes Development Act 2015". 6 [5] Section 3 (1), definition of "precinct scheme" 7 Omit "Strata Schemes (Freehold Development) Act 1973" from paragraph (d) of the 8 definition. 9 Insert instead "Strata Schemes Development Act 2015". 10 [6] Section 3 (1), definition of "schedule of unit entitlements" 11 Omit "Strata Schemes (Freehold Development) Act 1973". 12 Insert instead "Strata Schemes Development Act 2015". 13 [7] Section 3 (1), definition of "strata lot" 14 Omit "Strata Schemes (Freehold Development) Act 1973". 15 Insert instead "Strata Schemes Development Act 2015". 16 [8] Section 3 (1), definition of "strata plan" 17 Omit "Strata Schemes (Freehold Development) Act 1973". 18 Insert instead "Strata Schemes Development Act 2015". 19 [9] Section 3 (1), definition of "strata scheme" 20 Omit "Strata Schemes (Freehold Development) Act 1973" wherever occurring from 21 paragraphs (a) and (c) of the definition. 22 Insert instead "Strata Schemes Development Act 2015". 23 [10] Section 4 Object and application of Act 24 Omit "Strata Schemes (Freehold Development) Act 1973" from section 4 (1) (b). 25 Insert instead "Strata Schemes Development Act 2015". 26 9.4 Community Land Management Act 1989 No 202 27 [1] Section 3 Definitions 28 Omit "Strata Schemes (Freehold Development) Act 1973" from the definition of common 29 property in section 3 (1). 30 Insert instead "Strata Schemes Development Act 2015". 31 [2] Section 3 (1), definition of "community scheme" 32 Omit "Strata Schemes (Freehold Development) Act 1973" from paragraph (e) of the 33 definition. 34 Insert instead "Strata Schemes Development Act 2015". 35 Page 105 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [3] Section 3 (1), definition of "current plan" 1 Omit "Strata Schemes (Freehold Development) Act 1973". 2 Insert instead "Strata Schemes Development Act 2015". 3 [4] Section 3 (1), definition of "deposited plan" 4 Omit "Strata Schemes (Freehold Development) Act 1973". 5 Insert instead "Strata Schemes Development Act 2015". 6 [5] Section 3 (1), definition of "precinct scheme" 7 Omit "Strata Schemes (Freehold Development) Act 1973" from paragraph (d) of the 8 definition. 9 Insert instead "Strata Schemes Development Act 2015". 10 [6] Section 3 (1), definition of "schedule of unit entitlements" 11 Omit "Strata Schemes (Freehold Development) Act 1973". 12 Insert instead "Strata Schemes Development Act 2015". 13 [7] Section 3 (1), definition of "strata lot" 14 Omit "Strata Schemes (Freehold Development) Act 1973". 15 Insert instead "Strata Schemes Development Act 2015". 16 [8] Section 3 (1), definition of "strata plan" 17 Omit "Strata Schemes (Freehold Development) Act 1973". 18 Insert instead "Strata Schemes Development Act 2015". 19 [9] Section 3 (1), definition of "strata scheme" 20 Omit "Strata Schemes (Freehold Development) Act 1973" wherever occurring from 21 paragraphs (a) and (c) of the definition. 22 Insert instead "Strata Schemes Development Act 2015". 23 [10] Section 120 Other rights and remedies not affected 24 Omit "Strata Schemes (Freehold Development) Act 1973" from section 120 (1). 25 Insert instead "Strata Schemes Development Act 2015". 26 9.5 Conveyancing Act 1919 No 6 27 [1] Section 7 Definitions 28 Omit paragraph (b) from the definition of Registered plan in section 7 (1). Insert instead: 29 (b) a strata plan, strata plan of subdivision or strata plan of consolidation 30 within the meaning of the Strata Schemes Development Act 2015, 31 [2] Section 7 (1), definition of "Registered plan" 32 Omit paragraph (c). 33 Page 106 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [3] Section 23F Certain transactions to refer to lots shown on current plan 1 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 2 Development) Act 1986" from section 23F (3) (b). 3 Insert instead "Strata Schemes Development Act 2015". 4 [4] Section 66O Contracting out 5 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 6 Development) Act 1986" from section 66O (1). 7 Insert instead "Strata Schemes Development Act 2015". 8 [5] Section 66Q Meaning of "residential property" 9 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 10 Development) Act 1986" from section 66Q (1) (c). 11 Insert instead "Strata Schemes Development Act 2015". 12 [6] Section 195 Definitions 13 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 14 Development) Act 1986" from section 195 (2). 15 Insert instead "Strata Schemes Development Act 2015". 16 [7] Section 195AA The e-plan system 17 Omit section 195AA (10). Insert instead: 18 (10) In this section: 19 related Act means the Real Property Act 1900, the Strata Schemes 20 Development Act 2015 or the Community Land Development Act 1989. 21 [8] Section 196C Definitions 22 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 23 Development) Act 1986" from the definition of stratum lot. 24 Insert instead "Strata Schemes Development Act 2015". 25 [9] Section 196I Effect of building management statement 26 Insert "or sublessee" after "lessee" in section 196I (1) (b). 27 [10] Section 196J Effect of registration of strata management statement on building 28 management statement 29 Omit section 196J (1). Insert instead: 30 (1) A registered building management statement for a building ceases to have 31 effect on the registration of a strata management statement, or on it being taken 32 to be a registered strata management statement, in accordance with Part 6 of 33 the Strata Schemes Development Act 2015. 34 [11] Schedule 8A Building management statements 35 Insert after clause 2 (1) (e): 36 (e1) the fair allocation of the costs of shared expenses relating to parts of the 37 building, and 38 (e2) a review process to ensure that the allocation of those costs remains fair 39 with any such review taking place as soon as practicable after any 40 Page 107 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts change in the shared facilities or services (including any change in the 1 use of those shared facilities or services), with at least one such review 2 occurring every 5 years even if no such change has occurred, and 3 [12] Schedule 8A 4 Insert after clause 2 (1): 5 (1A) A building management statement must include details of the method used to 6 apportion the costs of shared expenses referred to in subclause (1) (e1). 7 9.6 Crown Lands (Continued Tenures) Act 1989 No 7 8 Schedule 3 Transfer restrictions 9 Omit "within the meaning of the Strata Schemes (Freehold Development) Act 1973" from 10 clause 8 (2) (c) of Part 1. 11 Insert instead "in a freehold strata scheme within the meaning of the Strata Schemes 12 Development Act 2015". 13 9.7 Duties Act 1997 No 123 14 [1] Section 64 Conversion of land use entitlement to different form of title 15 Omit "within the meaning of the Strata Schemes (Freehold Development) Act 1973". 16 Insert instead "in a freehold strata scheme within the meaning of the Strata Schemes 17 Development Act 2015". 18 [2] Section 65 Exemptions from duty 19 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 20 Development) Act 1986" from section 65 (13). 21 Insert instead "Strata Schemes Development Act 2015". 22 [3] Section 65 (19) 23 Omit "section 51 or 51A of the Strata Schemes (Freehold Development) Act 1973". 24 Insert instead "Part 9 of the Strata Schemes Development Act 2015". 25 [4] Section 146A Threshold value of land holdings 26 Omit "under the Strata Schemes (Freehold Development) Act 1973" from section 146A (9). 27 Insert instead "in a freehold strata scheme under the Strata Schemes Development Act 28 2015". 29 [5] Dictionary 30 Omit the definition of strata lot from clause 1. Insert instead: 31 strata lot means a lot within the meaning of the Strata Schemes Development 32 Act 2015. 33 9.8 Electronic Conveyancing (Adoption of National law) Act 2012 No 88 34 Section 5 Meaning of generic terms in Electronic Conveyancing National Law for 35 purposes of this jurisdiction 36 Omit paragraph (a) (iv) and (v) from the definition of land titles legislation. Insert instead: 37 (iv) the Strata Schemes Development Act 2015, 38 Page 108 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts 9.9 Heritage Act 1977 No 136 1 [1] Section 4 Definitions 2 Omit "the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes 3 (Leasehold Development) Act 1986" from the definition of consent authority in 4 section 4 (1). 5 Insert instead "or the Strata Schemes Development Act 2015". 6 [2] Section 56 Definitions 7 Omit paragraphs (d) and (e) from the definition of prescribed application. Insert instead: 8 (d) Part 4 of the Strata Schemes Development Act 2015, 9 [3] Section 66 Application of Subdivision 10 Omit "the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes 11 (Leasehold Development) Act 1986". 12 Insert instead "or the Strata Schemes Development Act 2015". 13 [4] Section 76 Appeal to Minister in respect of prescribed applications 14 Omit "the Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes 15 (Leasehold Development) Act 1986". 16 Insert instead "or the Strata Schemes Development Act 2015". 17 9.10 Land and Environment Court Act 1979 No 204 18 [1] Section 18 Class 2--local government and miscellaneous appeals and applications 19 Omit section 18 (c). Insert instead: 20 (c) appeals under sections 66 and 85 of the Strata Schemes Development 21 Act 2015, 22 [2] Section 18 (f) 23 Omit the paragraph. Insert instead: 24 (f) proceedings under sections 86 and 92 of the Strata Schemes 25 Development Act 2015 and under section 107 of the Community Land 26 Management Act 1989, 27 [3] Section 19 Class 3--land tenure, valuation, rating and compensation matters 28 Insert after section 19 (g5): 29 (g6) applications and proceedings under Divisions 6, 7 and 8 of Part 10 of 30 the Strata Schemes Development Act 2015, 31 [4] Section 20 Class 4--environmental planning and protection, development contract 32 and strata renewal plan civil enforcement 33 Omit "or a development contract" wherever occurring in section 20 (2) (a) and (b). 34 Insert instead ", a development contract or a strata renewal plan". 35 Page 109 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [5] Section 20 (5) 1 Omit the subsection. Insert instead: 2 (5) In this section: 3 development contract means an agreement implied by section 15 of the 4 Community Land Management Act 1989 or section 81 of the Strata Schemes 5 Development Act 2015. 6 strata renewal plan means a strata renewal plan under the Strata Schemes 7 Development Act 2015 that has been given effect by an order of the Court. 8 9.11 Land Sales Act 1964 No 12 9 Section 2 Definitions 10 Omit paragraph (b) of the definition of Instalment contract. Insert instead: 11 (b) a contract for the sale of a lot, or a leasehold interest in a lot, within the 12 meaning of the Strata Schemes Development Act 2015. 13 9.12 Land Tax Management Act 1956 No 26 14 [1] Section 9B Strata 15 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 16 Development) Act 1986" wherever occurring from section 9B (1) and (3). 17 Insert instead "Strata Schemes Development Act 2015". 18 [2] Section 10 Land exempted from tax 19 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 20 Development) Act 1986" from the definition of strata lot in section 10 (5). 21 Insert instead "Strata Schemes Development Act 2015". 22 [3] Section 21A Company title units taken to be lots 23 Omit "strata lot under the Strata Schemes (Freehold Development) Act 1973" from 24 section 21A (2) (b). 25 Insert instead "lot in a freehold strata scheme under the Strata Schemes Development Act 26 2015". 27 [4] Section 21A (3) 28 Omit "strata lot". Insert instead "lot". 29 [5] Section 21B Joint owners of block of flats deemed to be owners of lots 30 Omit "strata lot under the Strata Schemes (Freehold Development) Act 1973" from 31 section 21B (2) (c). 32 Insert instead "lot in a freehold strata scheme under the Strata Schemes Development Act 33 2015". 34 [6] Section 21B (3) 35 Omit "strata lot". Insert instead "lot". 36 Page 110 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [7] Section 21D Liability of lessees of leasehold strata lots 1 Omit "Strata Schemes (Leasehold Development) Act 1986" from section 21D (1). 2 Insert instead "Strata Schemes Development Act 2015". 3 [8] Section 21D (5) 4 Omit the subsection. Insert instead: 5 (5) In this section: 6 leasehold strata lot means a lot in a leasehold strata scheme within the 7 meaning of the Strata Schemes Development Act 2015. 8 lessee, in relation to a leasehold strata lot, means an owner, within the meaning 9 of the Strata Schemes Development Act 2015, of the lot. 10 lessor means a lessor within the meaning of the Strata Schemes Development 11 Act 2015. 12 [9] Schedule 1A Principal place of residence exemption 13 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 14 Development) Act 1986" from the definition of strata lot in clause 1 (1). 15 Insert instead "Strata Schemes Development Act 2015". 16 [10] Schedule 1A, clause 11 (3) 17 Omit "under the Strata Schemes (Freehold Development) Act 1973". 18 Insert instead "in a freehold strata scheme under the Strata Schemes Development Act 19 2015". 20 [11] Schedule 1A, clause 11 (4) 21 Omit "under the Strata Schemes (Leasehold Development) Act 1986". 22 Insert instead "in a leasehold strata scheme under the Strata Schemes Development Act 23 2015". 24 9.13 Local Government Act 1993 No 30 25 [1] Section 22 Other functions 26 Omit the matter relating to the Strata Schemes (Freehold Development) Act 1973 and the 27 Strata Schemes (Leasehold Development) Act 1986 from the note to the section. 28 Insert instead: 29 30 Strata Schemes Development Act 2015 approval of strata plans [2] Section 54C Definitions 31 Omit "Strata Schemes (Freehold Development) Act 1973 or a leasehold strata scheme under 32 the Strata Schemes (Leasehold Development) Act 1986" from the definition of strata 33 scheme. 34 Insert instead "Strata Schemes Development Act 2015". 35 Page 111 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [3] Section 270 Who is an "owner of rateable land" for the purposes of this Part? 1 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 2 Development) Act 1986" from section 270 (2). 3 Insert instead "Strata Schemes Development Act 2015". 4 [4] Section 495A Strata lots and company titles taken to be separate parcels of land for 5 annual charges 6 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 7 Development) Act 1986" from section 495A (a). 8 Insert instead "Strata Schemes Development Act 2015". 9 [5] Section 518A Strata lots and company titles taken to be separate parcels of land for 10 categorisation 11 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 12 Development) Act 1986" from section 518A (a). 13 Insert instead "Strata Schemes Development Act 2015". 14 [6] Section 547 Method of rating dwellings under company title 15 Omit the note to section 547 (3). Insert instead: 16 Note. The rating of land under strata title is provided for under the Strata Schemes 17 Development Act 2015. 18 [7] Section 555 What land is exempt from all rates? 19 Omit section 555 (4). Insert instead: 20 (4) Land that is a lot in a strata plan registered under the Strata Schemes 21 Development Act 2015 for a leasehold strata scheme is taken, for the purposes 22 of subsection (1) (e), (f), (g) and (g1), to belong to or be vested in the owner 23 (within the meaning of that Act) of the lot and not the lessor (within the 24 meaning of that Act), unless the lessor is the owner for the purposes of that 25 Act. 26 [8] Section 555 (7) 27 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 28 Development) Act 1986". 29 Insert instead "Strata Schemes Development Act 2015". 30 [9] Section 556 What land is exempt from all rates, other than water supply special rates 31 and sewerage special rates? 32 Omit section 556 (2). Insert instead: 33 (2) Land that is a lot in a strata plan registered under the Strata Schemes 34 Development Act 2015 for a leasehold strata scheme is taken, for the purposes 35 of subsection (1) (h)-(o), to belong to or be vested in the owner (within the 36 meaning of that Act) of the lot and not the lessor (within the meaning of that 37 Act), unless the lessor is the owner for the purposes of that Act. 38 [10] Section 556 (5) 39 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 40 Development) Act 1986". 41 Insert instead "Strata Schemes Development Act 2015". 42 Page 112 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts [11] Dictionary 1 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 2 Development) Act 1986" from paragraph (b) (iii) of the definition of owner. 3 Insert instead "Strata Schemes Development Act 2015". 4 9.14 Parking Space Levy Act 2009 No 5 5 Section 4 Definitions 6 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 7 Development) Act 1986" from paragraph (e) of the definition of owner in section 4 (1). 8 Insert instead "Strata Schemes Development Act 2015". 9 9.15 Property, Stock and Business Agents Act 2002 No 66 10 Section 3 Definitions 11 Omit paragraph (a) from the definition of land in section 3 (1). Insert instead: 12 (a) a lot within the meaning of the Strata Schemes Development Act 2015, 13 and 14 9.16 Real Property Act 1900 No 25 15 [1] Section 28P Application of provisions of this Act to qualified folio and land therein 16 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 17 Development) Act 1986" from section 28P (1) (c). 18 Insert instead "Strata Schemes Development Act 2015". 19 [2] Section 28T Creation of limited folio 20 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 21 Development) Act 1986" from section 28T (8) (c). 22 Insert instead "Strata Schemes Development Act 2015". 23 [3] Section 32 Folios of the Register 24 Omit section 32 (2). Insert instead: 25 (2) Subsection (1) does not apply in respect of a folio of the register constituted 26 under section 29 or 31 of the Strata Schemes Development Act 2015. 27 [4] Section 36 Lodgment and registration of documents 28 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 29 Development) Act 1986" from section 36 (3). 30 Insert instead "Strata Schemes Development Act 2015". 31 9.17 Regional Relocation Grants (Skills Incentive) Act 2011 No 26 32 Section 3 Definitions 33 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 34 Development) Act 1986" from the definition of land in section 3 (1). 35 Insert instead "Strata Schemes Development Act 2015". 36 Page 113 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts 9.18 Retail Leases Act 1994 No 46 1 [1] Section 3 Definitions 2 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 3 Development) Act 1986" from paragraph (b) of the definition of retail shopping centre. 4 Insert instead "Strata Schemes Development Act 2015". 5 [2] Section 26 Limit on recovery of land tax 6 Omit "strata lot under the Strata Schemes (Freehold Development) Act 1973 or the Strata 7 Schemes (Leasehold Development) Act 1986, the land concerned is the strata lot" from 8 section 26 (2). 9 Insert instead "lot in a strata scheme under the Strata Schemes Development Act 2015, the 10 land concerned is the lot". 11 [3] Section 62 Special provision for strata shopping centres 12 Omit "strata lot under the Strata Schemes (Freehold Development) Act 1973 or the Strata 13 Schemes (Leasehold Development) Act 1986". 14 Insert instead "lot under the Strata Schemes Development Act 2015". 15 9.19 Rural Fires Act 1997 No 65 16 Dictionary 17 Omit "Strata Schemes (Freehold Development) Act 1973 or a leasehold strata scheme under 18 the Strata Schemes (Leasehold Development) Act 1986" from paragraph (b) (iii) of the 19 definition of owner. 20 Insert instead "Strata Schemes Development Act 2015". 21 9.20 Succession Act 2006 No 80 22 Section 115 Spouse's right of election 23 Omit paragraphs (b) and (c) from the definition of mandatory provisions in section 115 (8). 24 Insert instead: 25 (b) the Strata Schemes Development Act 2015 with respect to the manner of 26 subdividing land to which section 9 of that Act applies or of any lot 27 within the meaning of that Act, and with respect to any requirement 28 incidental to the manner of subdividing any such land or lot. 29 9.21 Surveying and Spatial Information Act 2002 No 83 30 Section 3 Definitions 31 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 32 Development) Act 1986" from paragraph (c1) of the definition of land survey in 33 section 3 (1). 34 Insert instead "Strata Schemes Development Act 2015". 35 Page 114 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts 9.22 Sydney Olympic Park Authority Act 2001 No 57 1 Section 26 Subdivision legislation--subdivision approval by Authority 2 Omit "Strata Schemes (Freehold Development) Act 1973, the Strata Schemes (Leasehold 3 Development) Act 1986" from section 26 (1). 4 Insert instead "Strata Schemes Development Act 2015". 5 9.23 Transport Administration Act 1988 No 109 6 Section 104Q Local government approvals not required for light rail system 7 Omit "Strata Schemes (Freehold Development) Act 1973, the Strata Schemes (Leasehold 8 Development) Act 1986" from the definition of subdivision legislation in section 104Q (3). 9 Insert instead "Strata Schemes Development Act 2015". 10 9.24 Valuation of Land Act 1916 No 2 11 [1] Section 4 Definitions 12 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 13 Development) Act 1986" from the definition of Deposited plan in section 4 (1). 14 Insert instead "Strata Schemes Development Act 2015". 15 [2] Section 4 (3) 16 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 17 Development) Act 1986". 18 Insert instead "Strata Schemes Development Act 2015". 19 [3] Section 4 (3), note 20 Omit the note. 21 [4] Section 14BB Definitions 22 Omit the definition of strata lot in section 14BB (7). Insert instead: 23 strata lot means a lot within the meaning of the Strata Schemes Development 24 Act 2015. 25 [5] Section 14BBE Definitions 26 Omit the definition of strata lot from section 14BBE (7). Insert instead: 27 strata lot means a lot within the meaning of the Strata Schemes Development 28 Act 2015. 29 [6] Section 26AA 30 Insert after section 26: 31 26AA Valuation of strata parcel 32 (1) If the Valuer-General makes a valuation of a strata parcel, the parcel must be 33 valued: 34 (a) as a single parcel, and 35 (b) as if it were owned by a single owner. 36 Page 115 Strata Schemes Development Bill 2015 [NSW] Schedule 9 Amendment of Acts (2) For the purposes of the valuation and all purposes incidental to the valuation, 1 including objection to the valuation, the parcel and all improvements on the 2 parcel are taken to be owned by the owners corporation and by no other 3 person. 4 (3) From the registration of a strata plan until a valuation of the parcel showing 5 the owners corporation as owner becomes effective for rating and taxing 6 purposes, the valuation in force is taken to be a valuation of the parcel made 7 by the Valuer-General as if the owners corporation were shown as owner on 8 that valuation. 9 (4) The Valuer-General is not, for the purposes of the making, levying, 10 imposition, assessment or recovery of rates or taxes, required to make separate 11 valuations of any parts of a parcel otherwise than if the parcel were owned by 12 a single owner. 13 (5) In this section: 14 owners corporation, in relation to the valuation of a strata parcel, means the 15 owners corporation of the strata scheme under the Strata Schemes 16 Development Act 2015 in which the parcel is comprised. 17 strata parcel means a parcel within the meaning of the Strata Schemes 18 Development Act 2015. 19 strata plan means a strata plan within the meaning of the Strata Schemes 20 Development Act 2015. 21 [7] Section 26A Valuation of parcels that form part of the site of a building 22 Omit "Strata Schemes (Freehold Development) Act 1973 or the Strata Schemes (Leasehold 23 Development) Act 1986" wherever occurring in the definitions of parcel of land and strata 24 plan in section 26A (7). 25 Insert instead "Strata Schemes Development Act 2015". 26 [8] Section 60 Assessed annual value for purposes of other Acts 27 Omit section 60 (b) and (c). Insert instead: 28 (b) the Strata Schemes Development Act 2015, 29 Page 116
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