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

Covenant charge

Form 13CVC

Dealing type - CG

Legislation - section 88D, section 88E, section 88F(4)(a) Conveyancing Act 1919

Stamp duty - not required

NOS form - not required

Standard form of Caveat - prevents registration

Priority Notice noted on the Register - see Priority Notice page

Where a registered proprietor has failed to comply with an obligation imposed by a positive covenant under section 88 or 88E Conveyancing Act 1919, the prescribed authority may itself carry out the obligation and recover the cost by obtaining a judgment from a court. The prescribed authority may then lodge an application to register a covenant charge over the land (see 88F(4)(a) Conveyancing Act 1919). The covenant charge gives the prescribed authority the powers of a mortgagee, e.g. the power to sell the subject land if necessary.

A covenant charge may be discharged wholly or partially. See discharge of a covenant charge.

(A) The reference to title for the land burdened by the positive covenant must be stated.

A covenant charge cannot be recorded on the common property folio of a strata scheme. The amount owing is apportioned among the lots in the scheme, and covenant charges are recorded on the relevant folios of the Register, see section 32(4) Strata Schemes Development) Act 2015.

(B) The registered number of the positive covenant must be stated.

(D) The full name of the registered proprietor must be stated and must be identical to the name of the registered proprietor as shown on the Register, ….and in the case of a corporation must include its ACN/ARBN.

(E) The full name of the prescribed authority must be stated.

(F) The Court and date on which the judgment was obtained must be stated.

(G) A sealed copy of the judgment must be annexed to the dealing.

(H) A statutory declaration  must be made by an authorised officer of the prescribed authority and must confirm that the name of the defendant is identical to the name of the registered proprietor. The full name of the authorised officer and the nature of the authority must be stated. The statutory declaration must be signed by the authorised officer and must be witnessed by a prescribed functionary. Where the declaration has been made outside NSW reference to the Oaths Act 1900 must be deleted, the relevant Act must be stated.

General statutory declaration requirements can be found here.

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

Staff processing information

If in order proceed with registration.

Registration procedure

TRANSACTION    ON

PRIME CODE    CVC

DETAILS    [name of prescribed authority].
 

Publication Date: March 2024