On 11 October 2021, the Real Property Amendment (Certificates of Title) Act 2021 commenced, which abolished the Certificates of Title (CTs) and the control of the right to deal (CoRD) framework. All existing CTs have been cancelled and CTs will no longer be issued. Existing CTs will not need to be produced, and CoRD holder consent will not be required, for a dealing or plan to be registered. All existing Guidelines subject to this change are currently being reviewed and will be updated to reflect these changes. For further information regarding the abolition of CTs, please see https://www.registrargeneral.nsw.gov.au/property-and-conveyancing/eConveyancing/abolition-of-certificates-of-title

Lease of additional common property (strata schemes)

The owners corporation in a strata scheme may add to existing common property by leasing land. See sections 25 and 26 Strata Schemes Development Act 2015. See also Add land to a scheme.

NOTE: A special resolution is required from the owners corporation, see s26(2) Strata Schemes Development Act 2015.

NOTE: For information on leasing of additional association land in a community scheme, see Lease or Transfer of Association property.

The land in the lease:

  • must comprise a lot(s) in a current deposited plan
  • must be contiguous with the common property parcel or the owners corporation considers the land is otherwise relevant to the strata scheme (whether or not the land is within the parcel or contiguous to the parcel)
  • must be Real Property Act 1900 land
  • cannot be subject to a mortgage, charge, covenant charge or writ
  • cannot be a Qualified Title or a Limited Title, and
  • cannot be held as a perpetual lease from the Crown,
  • cannot be a lot in the Strata scheme.

If the strata scheme is a leasehold strata scheme, the term of the lease or sublease must not expire after the term of the lease of the common property.
Where a plan (for the land to be leased) does not exist, and the lease affects part of the land, a deposited plan must be prepared as follows:

  • when the term of the lease, including any option for renewal, does not exceed five years, the deposited plan must be a plan of survey defining only the land to be leased

  • when the term of the lease, including any option for renewal, exceeds five years, the lease will effect a subdivision within the meaning of section 7A(3) Conveyancing Act 1919. The deposited plan must be a plan of survey defining:

    • the land to be leased as one lot and

    • the residue, if any, of the lot from which the land is leased, as a separate lot.

 

The plan must not show the existing common property and the leased land as a single lot. Further, the plan:
 

  • when the term of the lease, including any option for renewal, exceeds five years, will require approval from a subdivision consent authority;

  • will not affect or create common property until the registration of the lease and

  • does not require the consent of the owners corporation.

For more information on preparing the Lease form to add to existing common property, see Guidelines for lease of land for common property or association property.

All NSW legislation can be accessed at www.legislation.nsw.gov.au/ 

Publish date: October 2023