New South Wales: 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 certificate (an association certificate) in the approved form, and (c) must not be registered unless— (i) the initial period has expired, or (ii) the transfer 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 transfer was authorised by special resolution, and (b) any interest in the land has been released if— (i) the transfer 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 transfer. (4) Land transferred under this section ceases to be association property. Part 5 Easements and restrictions Division 1 Granting or accepting relevant interests 29 Definition In this Division— relevant interest means an easement, restriction on the use of land or positive covenant. 30 Association may grant or accept relevant interest (1) An association may by special resolution— (a) grant an easement that burdens association property, or (b) grant a restriction on the use of land or a positive covenant that burdens association property or the whole of the scheme parcel, or (c) execute a dealing releasing or varying a relevant interest that benefits association property or the whole of the scheme parcel. (2) An association may by ordinary resolution— (a) accept the benefit of a relevant interest that benefits association property or the whole of the scheme parcel, or (b) accept a dealing releasing or varying a relevant interest that burdens association property or the whole of the scheme parcel. 31 Dealings to grant or accept relevant interest (1) A dealing by an association to grant, release, vary or accept a relevant interest that burdens or benefits land must be accompanied by a certificate— (a) in the approved form, and (b) under the seal of the association, and (c) to the effect that the dealing was approved by the association in accordance with this Division. (2) A dealing under this section must not be registered if the association is a neighbourhood association unless— (a) the initial period has expired, or (b) there is a development contract in force and the dealing is in accordance with the contract, or (c) the dealing has been authorised by the Tribunal. Division 2 Statutory easements 32 Definitions In this Division— lot means— (a) a development lot, neighbourhood lot or strata lot, or (b) community property, precinct property or neighbourhood property. prescribed diagram means a diagram in the approved form that complies with any requirements prescribed by the regulations or the lodgment rules. service includes— (a) the supply of water, gas, electricity, artificially heated or cooled air or heating oil, and (b) the provision of recycled water, sewerage and drainage, and (c) telecommunications services. service line means a pipe, wire, cable, duct, channel or pole used for the provision of a service. service provider includes an association that provides a service under a management statement. 33 Meaning of "statutory easement" For the purposes of this Act, a statutory easement is an easement conferring rights— (a) to provide a service line within a scheme and a service using the service line, and (b) to maintain and repair the service line, and (c) to enter the following land within the scheme and do all things as may be reasonably necessary to exercise the rights referred to in paragraphs (a) and (b)— (i) land that includes, or is to include, the service line, (ii) land contiguous to the land. 34 Creation of statutory easement (1) A statutory easement is created within a scheme when a prescribed diagram showing the position of the service line is registered as part of the management statement for the scheme. (2) On the creation within a scheme of a statutory easement for a service line— (a) the easement is appurtenant to each lot in the scheme to which a service is provided using the service line, and (b) land within the scheme in which the service line is located is subject to the easement to the extent the lot is affected by the service line. 35 Service line provider has benefit of statutory easement A service provider has the benefit of a statutory easement created in a scheme in relation to a service line if— (a) the service provider provides a service within a scheme using the service line, and (b) the service is provided in accordance with an agreement or, if the service provider is the association for the scheme, in accordance with a management statement. 36 Implied covenants An association, owner of land or service provider, having the benefit of a statutory easement is subject to the following covenants— (a) the rights under the easement will be exercised in a way that— (i) will not unreasonably interfere with the use and enjoyment by any other owner of land burdened by the easement, and (ii) will ensure any interference with the use and enjoyment of community, precinct or neighbourhood property by owners or occupiers of lots will be kept to a minimum, (b) the person exercising the rights under the easement will make good, at the person's own expense, any damage to, or interference with, the parts of the scheme affected by the exercise of the rights— (i) for land within the scheme that will include, or includes, the service line—by restoring the land to a basic standard not including the repair or restoration of unusual or expensive landscaping or other works erected over the land, and (ii) for land within the scheme contiguous to the land referred to in subparagraph (i)—by restoring the land to its former state, (c) the person exercising the rights under the easement will leave the land on which they are exercised in a clean and tidy condition on completion of the installation, maintenance or repair of any service the subject of the easement. 37 Service line completed after creation of statutory easement (1) If the installation of a service line is completed after the creation of the statutory easement, the relevant association— (a) must notify the Registrar-General of the completion in the approved form, and (b) if the service line is installed in a different position from the position shown in the registered prescribed diagram, must lodge a new prescribed diagram for registration— (i) showing the actual position of the service line, and (ii) signed by the owners of each of the lots to be burdened by the statutory easement to be created on registration of the new prescribed diagram. (2) If the installation is completed during the initial period, the notification and lodgment is to be done by the developer. (3) On registration of the new prescribed diagram— (a) the earlier prescribed diagram is cancelled to the extent it is inconsistent with the new prescribed diagram, and (b) the new prescribed diagram has effect on registration as if it had been registered immediately before installation of the service line. 38 Developer to give copy of prescribed diagram to association (1) A developer must give a copy of the prescribed diagram relating to a service line to the association for a scheme if— (a) a service line is installed as part of the scheme, and (b) the service line is installed after registration of the management statement. (2) The copy must be given within 1 month after the installation. 39 Registrar-General may make recordings The Registrar-General may make in the Register any recordings the Registrar-General thinks fit about any action taken under this Division. 40 Division does not affect other rights or obligations This Division does not affect any rights or obligations relating to service lines conferred or imposed by another Act. Part 6 Access to schemes 41 Setting apart access way in association property (1) All or part of association property may be set apart as an open access way connecting part of the scheme parcel— (a) to a public place, or (b) if the association property is part of a subsidiary scheme, to a public place through an open access way in the community scheme of which the subsidiary scheme forms part. (2) All or part of association property, other than an open access way, may be set apart as a private access way connecting part of the scheme parcel— (a) to an open access way within the scheme parcel or a public place, or (b) if the association property is part of a subsidiary scheme, to an open access way within the scheme parcel or a public place through an open access way in the community scheme of which the subsidiary scheme forms part. (3) Land is set apart under this section if the management statement for the scheme includes a plan in the approved form that— (a) defines the land to be set apart as an access way, and (b) specifies whether the land is an open access way or a private access way, and (c) includes any information prescribed by the regulations or lodgment rules. Note— See section 112 of the Community Land Management Act 2021 for further provisions relating to open and private access ways. 42 Special resolution required for closure of open access way An open access way within a community parcel may not be closed unless the closure is authorised by special resolution of each association whose members are entitled to use the access way. 43 Access ways remain as association property (1) Setting apart land as an open access way or a private access way does not— (a) cause the land to cease to be association property, or (b) affect the obligation of an association to maintain it as association property. (2) This section has effect to the exclusion of anything in the Roads Act 1993 that operates to vest land in a council as a public road. 44 Effect of access ways in relation to certain rights (1) Section 45A of the Real Property Act 1900 does not apply to a conveyance of land abutting on an open access way or a private access way. (2) The owner of a lot in a scheme has no rights in relation to association property set apart under the scheme as an open access way or a private access way other than— (a) rights conferred by this Act and the Community Land Management Act 2021 on the owner in relation to association property, and (b) rights conferred by the management statement for the scheme. Part 7 Development contracts 45 Definitions In this Act— authorised proposal means any part of the proposed development that the developer is permitted by the contract to carry out but cannot, merely because it is described in the contract, be compelled to carry out. development concern—see section 55. development contract means the instruments, plans and drawings registered with a scheme plan that describe the way in which it is proposed to develop land in the scheme. warranted development means any part of the proposed development that the developer is permitted by the contract to carry out and may be compelled to carry out. 46 Form and content (1) A development contract and any amendment of a development contract must be in the approved form and be signed by or on behalf of the developer. (2) A development contract must describe the following— (a) the parcel of land to which the contract relates, (b) any land proposed to be added to the parcel at a later time, (c) the warranted development, (d) the authorised proposals. (3) A development contract must identify— (a) warranted development as "warranted development—proposed development subject to a warranty", and (b) authorised proposals as "authorised proposals—proposed development not subject to a warranty". (4) A development contract must include— (a) a concept plan, and (b) a description of the amenities proposed to be provided, and (c) details of access and construction zones, working hours and any related rights over association property, and (d) an undertaking by the developer— (i) to not cause unreasonable inconvenience to owners of lots in the scheme, and (ii) to repair without delay any damage caused to association property or common property by development activities, and (e) any other documents, particulars, information or matter prescribed by the regulations. (5) A development contract cannot provide for the subdivision of association property without the consent, by special resolution, of the relevant association. (6) This section does not limit the matters that may be included in a development contract. 47 Planning approval (1) A planning authority must not grant planning approval to a relevant application unless the proposed development contract complies with this Part. (2) The granting of planning approval may be, but need not be, subject to a condition requiring the community parcel, precinct parcel or neighbourhood parcel to be developed in accordance with the development contract. (3) The condition has effect— (a) for a development consent under Part 4 of the Environmental Planning and Assessment Act 1979—as a condition of the development consent authorised by, and imposed under, section 4.17 of that Act, or (b) for an approval under Division 5.2 of that Act—as a condition of the approval. (4) A planning authority that grants planning approval for a relevant application— (a) must certify on the development contract that— (i) planning approval has been granted to the development proposed by the instruments, plans and drawings that comprise the development contract, and (ii) the instruments, plans and drawings are not inconsistent with the planning approval, and (b) must provide the applicant with a copy of the development contract bearing the certificate. (5) In this section— relevant application means an application for planning approval for development in accordance with a proposed scheme plan accompanied by a proposed development contract. 48 Variation of liability for association property expenses (1) A development contract may apportion the liability for expenses relating to the use or maintenance of association property in a scheme differently from the way liability would otherwise be apportioned by the schedule of unit entitlement applicable to lots under the scheme. (2) An apportionment under this section has effect despite the current schedule of unit entitlement, but does not apply to any liability relating to the use or maintenance of the association property after the development contract is concluded. 49 Binding effect (1) A development contract comes into effect when it is registered. (2) A development contract registered with a scheme plan has effect as if it included an agreement under seal with the covenants set out in subsections (3) and (4)— (3) The developer covenants that the developer must— (a) carry out warranted development, and (b) carry out development in accordance with— (i) the covenants set out and implied in the contract, and (ii) any relevant planning approval. (4) The other parties covenant that the developer will be permitted to carry out, in accordance with the development contract and any relevant planning approval— (a) warranted development, and (b) authorised proposals. (5) The covenants are given jointly and severally between the developer and each of the other parties. (6) Any attempt to exclude, modify or restrict the operation of the covenants is void. (7) The covenants do not affect any right or remedy a person has otherwise than under the covenants. (8) The covenants do not merge in a transfer. (9) Part 4 of the Community Land Management Act 2021 does not apply to matters arising under the covenants. (10) In this section— lot owner, for a scheme, means a person, other than a developer, who is the owner of a development lot or neighbourhood lot within the scheme. other parties, for a scheme, means— (a) the association and any subsidiary bodies, and (b) the lot owners, and (c) each registered mortgagee, chargee, covenant chargee or lessee of a lot. 50 Amendment with approval of planning authority and association (1) A development contract may be amended by the developer but the amendment is ineffective unless— (a) this section has been complied with in relation to the amendment, and (b) the amendment is registered. (2) A proposed amendment to a development contract may not be made unless it is approved— (a) by the planning authority, and (b) by the relevant association. (3) The approval of the relevant association must be by— (a) unanimous resolution, if the proposed amendment involves a change in— (i) the basic architectural or landscaping design of the development, or (ii) the essence or theme of the development, or (b) resolution, if the proposed amendment gives effect only to— (i) a change in the law, or (ii) a change in the requirements of the planning authority, or (c) special resolution, in any other case. (4) For the purposes of this section, an approval given under this Part by the Land and Environment Court to an amendment of a development contract has the same effect as if the approval were given by an association. (5) A planning authority that approves an amendment of a development contract must provide the applicant for the approval with— (a) a copy of the instruments, plans and drawings that describe and illustrate the amendment, and (b) a certificate to the effect that— (i) the copy describes and illustrates the approved amendment, and (ii) the development contract, if amended as approved by the authority, would not be inconsistent with the related planning approval. 51 Notice of decision of planning authority and appeal (1) If a planning authority does not approve an amendment of a development contract, the planning authority must give the applicant for the approval a notice stating— (a) the grounds for the refusal, and (b) the applicant may appeal to the Land and Environment Court against the refusal, and (c) the period within which the appeal may be made. (2) The applicant may appeal to the Land and Environment Court against the refusal within 12 months after receiving the notice. (3) However, the Land and Environment Court may, if it considers it appropriate in the circumstances, extend the period for making the appeal. (4) A decision of the Land and Environment 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. 52 Amendment with approval of Court (1) A developer may apply to the Land and Environment Court for an order approving an amendment of a development contract if the approval by the relevant association is not given under this Part because— (a) a motion for giving the approval has been defeated, or (b) the notice relating the motion has been given but a meeting to consider the motion has not been held within a reasonable time after the giving of the notice. (2) A copy of the application must be served by the developer on— (a) the planning authority, and (b) the association and any subsidiary body, and (c) each person other than the developer who is the owner of a development lot or neighbourhood lot in the scheme or any subsidiary scheme, and (d) each registered mortgagee, chargee and covenant chargee of a development lot or neighbourhood lot in the scheme or any subsidiary scheme. (3) Each person or body served with a copy of the application is entitled to appear and be heard at the hearing of the application. (4) The Land and Environment Court may— (a) approve the amendment, or (b) approve a different amendment, or (c) refuse to approve the amendment. 53 Registration of amendment (1) An amendment to a development contract made in accordance with this Part may be registered by the recordings in the Register as the Registrar-General thinks fit. (2) The Registrar-General may refuse an application for registration of an amendment unless— (a) it is in the approved form, and (b) it bears the approval of the planning authority, and (c) it bears a certificate by the association to the effect that the amendment was approved by the association as required by this Part. 54 Orders of the Court for breach (1) This section applies to proceedings brought in the Land and Environment Court. (2) If proceedings are brought by an association, or a member of an association, under section 9.45 of the Environmental Planning and Assessment Act 1979 for a breach of a condition of a planning approval constituted by a breach of a development contract, the Court may make an award of damages under section 20(2)(d) of the Land and Environment Court Act 1979— (a) instead of making a restraining order under section 9.46 of the Environmental Planning and Assessment Act 1979, or (b) instead of, or in addition to, making an order under that section other than a restraining order. (3) If proceedings are brought under section 20(2)(d) of the Land and Environment Court Act 1979 for a breach of the agreement implied by section 49 in relation to a development contract— (a) the Court may make an order under section 9.46 of the Environmental Planning and Assessment Act 1979 instead of, or in addition to, making an award of damages, or (b) the Court may order specific performance of the development contract instead of making an award of damages. 55 Development concerns (1) The following are development concerns for the purposes of this Part— (a) adding to association property in accordance with a development contract, (b) adding land to a scheme in accordance with a development contract, (c) carrying out any other development permitted to be carried out because it is included in a development contract. (2) The following are not development concerns for the purposes of this Part— (a) the subdivision of association property created by a registered plan, (b) the grant of a lease over association property, (c) the amendment of a development contract, regardless of whether the subject-matter involved is, or relates to, a development concern. 56 Right to complete permitted development (1) The developer who is permitted to carry out development that is a development concern under a development contract is the relevant developer for the development concern. (2) A motion included in the notice for a meeting of an association that would have the effect of making a decision about a development concern may be passed or defeated by— (a) the vote of the relevant developer, or (b) if there is more than 1 relevant developer, the vote of each of the developers. (3) It is not necessary for a decision about a development concern to be supported by special or unanimous resolution of an association, despite any other provision of this Act. (4) A dealing, plan or other instrument may be executed for the purpose of giving effect to a decision about a development concern by— (a) an association, or (b) the relevant developer on behalf of an association. (5) The regulations or the lodgment rules may— (a) impose requirements for the execution of dealings, plans and other instruments by associations and developers, and (b) require verification by statutory declaration of the circumstances in which they were executed. 57 Meetings of association relating to development concerns (1) A motion, the passing or defeat of which at a meeting of an association or of the association committee of an association would have the effect of making a decision about a development concern, must be— (a) identified as relating to a development concern in the notice for the meeting, and (b) moved separately from any other kind of motion. (2) A general meeting of an association under Schedule 1 to the Community Land Management Act 2021— (a) may be convened by the developer, or (b) must be convened if a qualified request is made under section 17 of that Act. (3) In convening the general meeting, the developer or the persons or bodies making the qualified request may give notice of the meeting on behalf of the association committee of the association. (4) The required quorum at a meeting of the association or association committee of the association is the developer— (a) while business relating to a development concern is being dealt with, and (b) if notice of the meeting has been duly given. (5) A developer may exercise any of the following functions for the purpose only of allowing development permitted by a development contract to be carried out— (a) functions of an association bound by the development contract, (b) functions of any other person having functions under the scheme concerned as may be prescribed by the regulations. (6) A reference to a developer in subsections (4) and (5) is, if the developer is a corporation, a reference to the company nominee of the corporation. (7) This section has effect despite any other provision of this Act. (8) In this section— company nominee, for a corporation, means a company nominee within the meaning of the Community Land Management Act 2021 who is authorised to exercise the voting rights of the corporation. 58 Conclusion of development contract (1) For the purposes of this Act, a development contract is concluded when any of the following occurs— (a) any planning approval required for carrying out the contract is revoked, (b) the time specified by the contract for conclusion of the contract arrives, (c) a notice (a completion notice) stating that the scheme to which the contract relates is completed is registered by the Registrar-General, (d) the scheme to which the contract relates is terminated under Part 9. (2) A development contract must specify a time for the conclusion of the contract being a time not later than— (a) 10 years after the registration of the contract, or (b) if the regulations permit a later date to be specified, the later date. (3) A completion notice must not be registered by the Registrar-General unless— (a) it is in the approved form, and (b) it has been signed by the developer concerned, and (c) it is lodged with a certificate of the association for the scheme concerned— (i) in the approved form, and (ii) certifying that the association has agreed, by unanimous resolution, that the development contract has concluded. (4) The Registrar-General must, if satisfied that a development contract has concluded— (a) make an appropriate record of the conclusion of the contract in the folio for the association and the association property, if any, of the scheme concerned, and (b) remove the contract from the Register. Part 8 Amalgamation of schemes 59 Amalgamation with subsidiary precinct or neighbourhood scheme A precinct scheme or neighbourhood scheme forming part of a community scheme may be amalgamated with the community scheme in accordance with this Part. 60 Public notice of proposed amalgamation (1) The following must be publicly notified at least 14 days before an application for amalgamation is made— (a) details of the proposed amalgamation, (b) a statement of intention to make the application. (2) The public notification must be done in a way the Registrar-General considers appropriate to cause notice of the application to come to the attention of the public. 61 Application for amalgamation of schemes (1) An application for amalgamation must— (a) be made to the Registrar-General in the approved form, and (b) be made under the seal of each of the following associations after being approved by special resolution of each of the associations— (i) the community association, (ii) the precinct association or neighbourhood association for the precinct scheme or neighbourhood scheme to be amalgamated, (iii) the association or strata corporation for each other subsidiary scheme in the community scheme, (iv) if the amalgamated scheme is a precinct scheme, the association or strata corporation for each other subsidiary scheme in the precinct scheme, and (c) be signed by the registered owner of each development lot in the community scheme that has not become part of a subsidiary scheme, and (d) bear the consent of the planning authority. (2) The Registrar-General may refuse to register an amalgamation unless— (a) the application for amalgamation is signed by each registered mortgagee, chargee or covenant chargee of each development lot in the community scheme that has not become part of a subsidiary scheme, and (b) the application bears the consent of each lessee of precinct property or neighbourhood property in the precinct scheme or neighbourhood scheme to be amalgamated with the community scheme. 62 Matters to accompany application (1) The application for amalgamation must be accompanied by— (a) an additional sheet of the detail plan for the community plan showing all the amalgamated precinct development lots or neighbourhood lots as community development lots or former community development lots without any changes to the boundaries or dimensions of the lots, and (b) a replacement sheet for the community property plan showing the altered boundaries of the community property including the amalgamated precinct property or neighbourhood property, and (c) a replacement schedule of unit entitlement for the community plan that complies with Schedule 3, and (d) an amended community management statement, and (e) any documents prescribed by the regulations. (2) The amended community management statement must—