Community Land Development Act 2021 (NSW)

Community Land Development Act 2021 No 6 An Act to facilitate the subdivision and development of land with shared property; and for other purposes. Part 1 Preliminary 1 Name of Act This Act is the Community Land Development Act 2021. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Object of Act The object of this Act is to facilitate the subdivision of land into parcels for separate development or disposition— (a) with a common or shared property interest in associated land, and (b) in conjunction with the development of another parcel or parcels. 4 Interpretation (1) The Dictionary to this Act defines certain terms used in this Act. Note— The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) This Act is to be interpreted as part of the Real Property Act 1900 but, if there is an inconsistency between them, this Act prevails. (3) For the purposes of this Act, land is contiguous even if it is divided by, or separated from other land by a natural feature, railway, public road, public reserve or drainage reserve. (4) A reference in this Act to any of the following approvals, contracts or statements includes a reference to the approval, contract or statement as modified or amended from time to time in accordance with this or any other Act— (a) a planning approval, (b) a development contract, (c) a community management statement, (d) a precinct management statement, (e) a neighbourhood management statement. (5) Notes included in this Act do not form part of this Act. 5 Meaning of "community scheme" In this Act, community scheme means— (a) the subdivision of land by a community plan, and (b) the subdivision of land in the community plan by a precinct plan, and (c) the subdivision of land in the community plan or precinct plan by a neighbourhood plan or strata plan, and (d) the proposals in any related development contract, and (e) the rights conferred, and the obligations imposed, by or under this Act, the Community Land Management Act 2021, Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015 in relation to the following— (i) the community association, (ii) the community property, (iii) subsidiary schemes, (iv) persons having interests in, or occupying, development lots and lots in subsidiary schemes. 6 Meaning of "precinct scheme" In this Act, precinct scheme means— (a) the subdivision of land by a precinct plan, and (b) the subdivision of land in the precinct plan by a neighbourhood plan or strata plan, and (c) the proposals in any related development contract, and (d) the rights conferred, and the obligations imposed, by or under this Act, the Community Land Management Act 2021, Strata Schemes Development Act 2015 and Strata Schemes Management Act 2015 in relation to the following— (i) the precinct association, (ii) the precinct property, (iii) subsidiary schemes, (iv) persons having interests in, or occupying, development lots and lots in subsidiary schemes. 7 Meaning of "neighbourhood scheme" In this Act, neighbourhood scheme means— (a) the subdivision of land by a neighbourhood plan, and (b) the proposals in any related development contract, and (c) the rights conferred, and the obligations imposed, by or under this Act and the Community Land Management Act 2021 in relation to the following— (i) the neighbourhood association, (ii) the neighbourhood property, (iii) persons having interests in, or occupying, the neighbourhood lots. Part 2 Establishment of schemes 8 Establishment of community scheme (1) A community scheme is established by the registration of a plan for the subdivision of land— (a) that is not part of a community parcel, precinct parcel, neighbourhood parcel or strata parcel, and (b) into 2 or more community development lots and 1 other lot that is community property, whether or not the plan includes land that, on registration of the plan, will be dedicated as a public road, public reserve or drainage reserve. (2) The registration of a community plan constitutes a corporation with the corporate name "Community Association DP No ", where the number to be inserted is the number of the plan registered as the community plan. (3) The members of the corporation are as follows— (a) the owner of each community development lot in the community parcel that has not become subject to a subsidiary scheme, (b) the precinct association constituted if a community development lot in the community parcel becomes subject to a precinct scheme, (c) the neighbourhood association constituted if a community development lot in the community parcel becomes subject to a neighbourhood scheme, (d) the strata corporation constituted if a community development lot in the community parcel becomes subject to a strata scheme. (4) In this Act— community association means a corporation constituted by the registration of a community plan. community plan means a plan referred to in subsection (1). 9 Establishment of precinct scheme (1) A precinct scheme is established by the registration of a plan for the subdivision of land— (a) that is a community development lot, and (b) into 2 or more precinct development lots and 1 other lot that is precinct property, whether or not the plan includes land that, on registration of the plan, will be dedicated as a public road, public reserve or drainage reserve. (2) The registration of a precinct plan constitutes a corporation with the corporate name "Precinct Association DP No ", where the number to be inserted is the number of the plan registered as the precinct plan. (3) The members of the corporation are as follows— (a) the owner of each precinct development lot in the precinct parcel that has not become subject to a subsidiary scheme, (b) the neighbourhood association constituted if a precinct development lot in the precinct parcel becomes subject to a neighbourhood scheme, (c) the strata corporation constituted if a precinct development lot in the precinct parcel becomes subject to a strata scheme. (4) In this Act— precinct association means a corporation constituted by the registration of a precinct plan. precinct plan means a plan referred to in subsection (1). 10 Establishment of neighbourhood scheme (1) A neighbourhood scheme that is part of a community scheme or precinct scheme is established by the registration of a plan for the subdivision of land— (a) that is a development lot, and (b) into 2 or more neighbourhood lots and 1 other lot that is neighbourhood property, whether or not the plan includes land that, on registration of the plan, will be dedicated as a public road, public reserve or drainage reserve. (2) A neighbourhood scheme that is not part of a community scheme or precinct scheme is established by the registration of a plan for the subdivision of land— (a) that is not part of a community parcel, precinct parcel, neighbourhood parcel or strata parcel, and (b) into 2 or more neighbourhood lots and 1 other lot that is neighbourhood property, whether or not the plan includes land that, on registration of the plan, will be dedicated as a public road, public reserve or drainage reserve. (3) The registration of a neighbourhood plan constitutes a corporation with the corporate name "Neighbourhood Association DP No ", where the number to be inserted is the number of the plan registered as the neighbourhood plan. (4) The members of the corporation are the owners of the neighbourhood lots in the neighbourhood parcel. (5) In this Act— neighbourhood association means a corporation constituted by the registration of a neighbourhood plan. neighbourhood plan means a plan referred to in subsection (1) or (2). 11 Exclusion of corporations law A community association, precinct association or neighbourhood association is declared to be an excluded matter for the purposes of section 5F of the Corporations Act 2001 of the Commonwealth in relation to the whole of the Corporations legislation. Note— That section permits a State to exclude a matter from the application of all or part of the Corporations legislation. 12 Requirements for scheme plans (1) A scheme plan— (a) must comply with Schedule 1, and (b) must include— (i) a location plan, and (ii) a detail plan, and (iii) an association property plan, and (c) must be accompanied by— (i) a management statement for the scheme that complies with Schedule 2, and (ii) any documents prescribed by the regulations, and (d) may be accompanied by a development contract for the scheme that complies with Part 7. (2) The administration sheet for a scheme plan must include— (a) a schedule of unit entitlement that complies with Schedule 3, and (b) the address at which documents may be served on the association constituted on registration of the plan. (3) On the registration of a scheme plan, the Registrar-General is to make— (a) a recording identifying the relevant association property in the folio for each development lot or neighbourhood lot, and (b) the recordings required by subsection (4) in the folio for the association property. (4) The following recordings are to be made in the folio for association property— (a) the name of the relevant association, (b) the latest address of which the Registrar-General has been notified for the service of notices on the association, (c) if the association is the association for a subsidiary scheme, a recording identifying the association property of the scheme of which the subsidiary scheme is a part, (d) a recording to identify easements benefiting or burdening the association property or the whole of the scheme parcel, (e) a recording to identify positive covenants or restrictions on the use of land burdening the association property or the whole of the scheme parcel, (f) a recording to identify the applicable management statement and amendments to the applicable management statement, (g) a recording to identify any development contract registered with the scheme plan and any amendments to the development contract, (h) the recordings required to be made under this Act or any other Act, (i) any other recordings that the Registrar-General thinks fit. 13 Establishment of subsidiary strata scheme (1) A community development lot or precinct development lot may also be subdivided by the registration of a strata plan that includes common property. (2) On the registration of a strata plan, the Registrar-General is to make the following recordings— (a) in the folio for the common property— (i) the recordings required under sections 29, 31 and 32 of the Strata Schemes Development Act 2015, and (ii) a recording identifying the association property of the scheme of which the strata scheme is a part, and (iii) the recordings required to be made under this Act or any other Act, and (iv) any other recordings that the Registrar-General thinks fit. (b) in the folio for each strata lot, the recordings required under the Strata Schemes Development Act 2015. (3) A neighbourhood lot may not be subdivided by the registration of a strata plan. Part 3 Plans and instruments affecting schemes Division 1 Plans of subdivision and consolidation 14 Scheme plans of subdivision (1) A community plan of subdivision may be used to— (a) subdivide 1 or more community development lots into— (i) 2 or more community development lots, or (ii) 1 or more community development lots and community property, or (b) subdivide 1 or more community development lots and some, but not all, community property into 1 or more community development lots and community property, or (c) subdivide community property into 1 or more community development lots and community property, or (d) add a community development lot to a community scheme. (2) A precinct plan of subdivision may be used to— (a) subdivide 1 or more precinct development lots into— (i) 2 or more precinct development lots, or (ii) 1 or more precinct development lots and precinct property, or (b) subdivide 1 or more precinct development lots and some, but not all, precinct property into 1 or more precinct development lots and precinct property, or (c) subdivide precinct property into 1 or more precinct development lots and precinct property, or (d) add a precinct development lot to a precinct scheme. (3) A neighbourhood plan of subdivision may be used to— (a) subdivide 1 or more neighbourhood lots into— (i) 2 or more neighbourhood lots, or (ii) 1 or more neighbourhood lots and neighbourhood property, or (b) subdivide 1 or more neighbourhood lots and some, but not all, neighbourhood property into 1 or more neighbourhood lots and neighbourhood property, or (c) subdivide neighbourhood property into 1 or more neighbourhood lots and neighbourhood property, or (d) add a neighbourhood lot to a neighbourhood scheme. 15 Requirements for scheme plan of subdivision that subdivides or creates lot (1) This section applies to a scheme plan of subdivision but not a scheme plan of subdivision that adds land to a scheme parcel as a development lot or neighbourhood lot. (2) The plan— (a) must comply with Schedule 1, and (b) must include an additional sheet of the detail plan showing the boundaries of all development lots or neighbourhood lots created by the subdivision, and (c) must include a replacement schedule of unit entitlement for the scheme that complies with Schedule 3, and (d) if it is necessary to amend a registered development contract to give effect to the plan, must be accompanied by— (i) a request for registration of the amendment to the development contract in the approved form, and (ii) any documents prescribed by the regulations, and (e) if a neighbourhood lot is being subdivided and it is held by the original owner, must not be registered unless— (i) the initial period has expired, or (ii) there is a development contract in force and the dealing is in accordance with the development contract, or (iii) the dealing has been authorised by the Tribunal. (3) The plan, if it subdivides or creates association property— (a) must include a replacement sheet for the association property plan showing the altered boundaries of the association property, and (b) must be accompanied by a certificate (the association certificate) in the approved form, and (c) must not be registered unless— (i) the initial period has expired, or (ii) there is a development contract in force and the plan is in accordance with the contract, or (iii) the plan has been authorised by the Tribunal. (4) The association certificate must be under the seal of the association and be to the effect that— (a) execution of the plan was authorised by special resolution, and (b) any interest in the land has been released if— (i) the plan has not been made subject to the interest, and (ii) the interest is not a statutory interest or an interest recorded in the Register, and (iii) the association has notice of the interest, and (c) land ceasing to be association property will no longer be affected by a by-law restricting the use of association property. (5) A development lot or neighbourhood lot created by a subdivision of association property ceases to be association property. 16 Requirements for scheme plan of subdivision that adds land to scheme parcel (1) This section applies to a scheme plan of subdivision that adds land to a scheme parcel as a development lot or neighbourhood lot. (2) The plan— (a) must comply with Schedule 1, and (b) must include an additional sheet of the detail plan showing the boundaries of all development lots or neighbourhood lots created by the subdivision, and (c) must include a replacement schedule of unit entitlement for the scheme that complies with Schedule 3, and (d) must be accompanied by a certificate in the approved form certifying the association has been approved by special resolution the addition of the land, and (e) if required by the Registrar-General, must be accompanied by a replacement location plan showing the new boundaries and overall layout of the scheme parcel, and (f) must not be registered if the scheme parcel is a community parcel, unless the land— (i) is contiguous to the community parcel, and (ii) is not part of a scheme parcel or strata parcel, and (g) must not be registered if the scheme parcel is a precinct parcel, unless the land— (i) is contiguous to the precinct parcel, and (ii) comprises a community development lot in the relevant community scheme, and (h) must not be registered if the scheme parcel is a neighbourhood parcel that is part of a community scheme, unless the land— (i) is contiguous to the neighbourhood parcel, and (ii) comprises a development lot in the community scheme or, if the neighbourhood scheme is also part of a precinct scheme, the precinct scheme, and (i) must not be registered if the scheme parcel is a neighbourhood parcel that is not part of a community scheme, unless the land— (i) is contiguous to the neighbourhood parcel, and (ii) is not part of a scheme parcel or strata parcel, and (j) must not be registered, unless— (i) the initial period has expired, or (ii) there is a development contract in force and the addition of the land is in accordance with the contract, or (iii) the addition of the land has been authorised by the Tribunal. 17 Scheme plans of consolidation (1) A community plan of consolidation may be used to consolidate 2 or more, but not all, of the community development lots in the same community plan. (2) A precinct plan of consolidation may be used to consolidate 2 or more, but not all, of the precinct development lots in the same precinct plan. (3) A neighbourhood plan of consolidation may be used to consolidate 2 or more, but not all, of the neighbourhood lots in the same neighbourhood plan. (4) A scheme plan of consolidation— (a) must comply with Schedule 1, and (b) must include an additional sheet of the detail plan showing the boundaries of the consolidated lot, and (c) must include a replacement schedule of unit entitlement that— (i) complies with Schedule 3, and (ii) does not differ from the existing schedule except to show the unit entitlement of the consolidated lot as the sum of the lots that have been consolidated, and (d) must be accompanied by any documents prescribed by the regulations. Division 2 Community and precinct development lots 18 Minor adjustments between development lots and community property (1) A boundary adjustment plan may be used to make an adjustment that, in the opinion of the Registrar-General, is a minor adjustment, to— (a) the boundaries between community development lots and the community property in a community plan, or (b) the boundaries between precinct development lots and the precinct property in a precinct plan. (2) A boundary adjustment plan must— (a) comply with Schedule 1, and (b) include an additional sheet of the detail plan showing the altered boundaries of the affected development lots, and (c) include a replacement sheet for the relevant association property plan showing the altered boundaries of the association property, and (d) be accompanied by any documents prescribed by the regulations. (3) A boundary adjustment plan when registered— (a) operates, without any further assurance, to vest the land in accordance with the adjusted boundaries, and (b) does not of itself give rise to any liability for stamp duty. 19 Severance of a development lot (1) An instrument in the approved form may be used to— (a) sever a community development lot from a community scheme, or (b) sever a precinct development lot from a precinct scheme. (2) The instrument— (a) must be signed by the owner of the lot and by the association, and (b) must be accompanied by a replacement schedule of unit entitlement that complies with Schedule 3 for— (i) the community scheme, and (ii) if the severed lot is a precinct development lot, the precinct scheme, and (c) must be accompanied by a certificate of the planning authority signifying its consent to the severance, and (d) must be accompanied by a certificate under seal to the effect that consent to the severance has been given by special resolution— (i) for a community development lot, by the community association, or (ii) for a precinct development lot, by the community association and the precinct association, and (e) must be accompanied by the consent of each mortgagee, chargee or covenant chargee of the lot, and (f) must be accompanied by any evidence the Registrar-General may require to show that all easements for access and services have been created if the easements are necessary for the community scheme and the severed lot because of the severance of the lot. (3) On registration of the instrument, the Registrar-General is to make any recordings in the folio for the severed lot as the Registrar-General thinks fit— (a) to give effect to the severance, and (b) to preserve subsisting interests recorded in the folio. (4) A severed lot ceases to be a development lot but continues to be a lot in a current plan for the purposes of section 23F of the Conveyancing Act 1919. Part 4 Association property 20 Definition In this Part— relevant interest means the following— (a) a mortgage, (b) a charge, (c) a covenant charge, (d) a writ, (e) a caveat, (f) a lease, other than a lease necessary for the provision of a service to the scheme. 21 Vesting of association property (1) Registration of a plan or dealing creating association property— (a) vests the land in the relevant association, and (b) frees and discharges the land from all relevant interests. (2) Land vests under this section for the estate or interest evidenced by the folio for the land. 22 Shares in association property (1) An association for a scheme holds association property in the scheme as agent for the following as tenants in common— (a) the owners of the development lots or neighbourhood lots in the scheme, other than lots in a subsidiary scheme, (b) any subsidiary body for a subsidiary scheme comprising a former development lot in the scheme. (2) The shares in the association property are proportional— (a) for owners of development lots or neighbourhood lots, to the unit entitlement of the lots, and (b) for a subsidiary body, to the unit entitlement of the former development lot. 23 Dealings with association property (1) Association property may be dealt with only in accordance with this Act and the Community Land Management Act 2021. (2) Association property held by an association as agent— (a) for the owner of a development lot or neighbourhood lot, may be dealt with in conjunction with the lot, or (b) for a subsidiary body, may be dealt with in conjunction with the subsidiary parcel. (3) A reference in a dealing, caveat or priority notice to a lot is taken to include a reference to association property held by an association as agent in relation to the lot. (4) Subsection (3) has effect without a recording being made in the folio for the association property. 24 Conversion of lots to association property (1) An instrument in the approved form may be used to— (a) convert a community development lot to community property, or (b) convert a precinct development lot to precinct property, or (c) convert a neighbourhood lot to neighbourhood property. (2) The instrument— (a) must be signed by the owner of the lot and by the association, and (b) must be accompanied by a replacement sheet for the association property plan showing the altered boundaries of the association property, and (c) must be accompanied by a replacement schedule of unit entitlement for the affected scheme that complies with Schedule 3, and (d) must be accompanied by a certificate of the planning authority showing its consent to the conversion, and (e) must be accompanied by a certificate under the seal of the relevant association to the effect that it has, by special resolution, consented to the conversion and to the new schedule of unit entitlement, and (f) must not be registered unless the folio for the lot is freed from all relevant interests, and (g) if the instrument is converting a neighbourhood lot held by the original owner, must not be registered unless— (i) the initial period has expired, or (ii) there is a development contract in force and the instrument is in accordance with the contract, or (iii) the conversion has been authorised by the Tribunal. (3) On registration of the instrument, the Registrar-General is to cancel the folio for the lot. 25 Acquisition of additional association property by transfer (1) An association may add land to its association property by transfer if— (a) the land is not part of the scheme parcel, and (b) the land is contiguous to the scheme parcel, and (c) the transfer is registered under the Real Property Act 1900. (2) If the scheme is a subsidiary scheme, the transferred land must comprise a development lot within a scheme of which the subsidiary scheme is part. (3) The transfer— (a), (b) (Repealed) (c) must be accompanied by a certificate under the seal of the association to which the land is to be transferred to the effect that acceptance of the transfer was authorised by special resolution, and (d) must be accompanied by a replacement sheet for the association property plan showing the altered boundaries of the association property, and (e) must be accompanied by an additional sheet of the detail plan showing the detailed survey information of the additional land, and (f) if required by the Registrar-General, must be accompanied by a replacement location plan showing the new boundaries and overall layout of the scheme parcel, and (g) must not be registered unless the folio for the lot is freed from all relevant interests, and (h) must not be registered unless— (i) the initial period has expired, or (ii) there is a development contract in force and the transfer is in accordance with the contract, or (iii) the transfer has been authorised by the Tribunal. (4) In this section— detailed survey information for a plan, means the survey information required to be included in the plan by regulations made under the Surveying and Spatial Information Act 2002. 26 Acquisition of additional association property by lease (1) An association may add land to its association property by lease if— (a) the land is not part of the scheme parcel, and (b) the land is contiguous to the scheme parcel, and (c) the lease is registered under the Real Property Act 1900. (2) The lease— (a), (b) (Repealed) (c) must be accompanied by a certificate under the seal of the association to which the land is to be transferred to the effect that acceptance of the lease was authorised by special resolution, and (d) if the lease is to a neighbourhood association, must not be registered unless— (i) the initial period has expired, or (ii) there is a development contract in force and the lease is in accordance with the contract, or (iii) the lease has been authorised by the Tribunal. (3) An association may surrender or vary a lease accepted by it under this section if— (a) it so decides by special resolution, and (b) the lessor consents. (4) In this section— lease includes— (a) a sublease, and (b) a leasehold estate or interest acquired by transfer. 27 Lease of certain association property (1) An association may grant a lease of land forming part of its association property if— (a) the land is not all of its association property, and (b) the lease is registered under the Real Property Act 1900. (2) The lease— (a) must be accompanied by a certificate (an association certificate) in the approved form, and (b) must not be registered unless— (i) the initial period has expired, or (ii) the grant of the lease has been authorised by the Tribunal. (3) The association certificate must be under the seal of the association and be to the effect that— (a) execution of the lease was authorised by special resolution, and (b) any interest in the land has been released if— (i) the lease has not been made subject to the interest, and (ii) the interest is not a statutory interest or an interest recorded in the Register, and (iii) the association has notice of the interest, and (c) any by-law restricting the use of the association property no longer affects the interest passing under the lease. (4) An association may by special resolution accept a surrender of, or exercise a right of re-entry under, a lease granted by it under this section. (5) In this section— grant a lease includes grant a sublease or transfer a lease, but only if the sublease or transfer is not in contravention of the lease. 28 Transfer of association property (1) An association may transfer land forming part of its association property if— (a) the land is not all of its association property, and (b) the land is not held by it on lease, and (c) the land is shown as a lot in a plan lodged for registration as a current plan, and (d) the transfer is registered under the Real Property Act 1900. (2) The transfer— (a) must be accompanied by a replacement sheet for the association property plan showing the altered boundaries of the association property, and (b) must be accompanied by a certi