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

 

Amalgamation of Schemes

A precinct scheme or neighbourhood scheme that forms part of a community scheme may be amalgamated with the community scheme (see section 59 Community Land Development Act 2021). This may be an attractive option to simplify the on-going management of a community scheme when development of the scheme is complete.

An application for amalgamation of a scheme must:

  • Be made under the seal of each of the following associations after being approved by a special resolution (Approved form 21) of each of the associations:

    • The community association

    • The precinct association or neighbourhood association for the precinct scheme or neighbourhood scheme being amalgamated

    • The association or strata corporation for each other subsidiary scheme in the community scheme and

    • If the amalgamated scheme is a precinct scheme, the association or strata corporation for each other subsidiary scheme in the precinct scheme

  • Be signed by the registered owner of each development lot in the community scheme that has not become part of a subsidiary scheme and

  • Be endorsed with the consent of the planning authority.

The Registrar General may require that the application be 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

  • Each lessee of precinct property or neighbourhood property in the precinct scheme or neighbourhood scheme to be amalgamated with the community scheme.

Matters to accompany application

An application for amalgamation must be accompanied by:

  • 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. The additional sheet:

    • must show the updated survey information for the association property that is to be amalgamated

    • may be compiled from information in the relevant precinct plan or neighbourhood plan

    • must be numbered consecutively beginning with the next available lot number for the community scheme.

  • replacement sheet for the community property plan showing the altered boundaries of the community property including the amalgamated precinct property or neighbourhood property 

  • replacement schedule of unit entitlement for the community plan that complies with Schedule 3 and must be accompanied by a certificate (an association certificate) in the approved form. The association certificate must:

    • be under the seal of the association and

    • contain a statement to the effect that the unit entitlement of the new community development lots have been apportioned in accordance with clause 13(2) Schedule 3 Community Land Development Act 2021

  • an amended community management statement

  •   the consent of the planning authority required under the Community Land Development Act 2021.

The amended community management statement must:

  • comply with Schedule 2

  • include a new prescribed diagram (statutory easement diagram) for all the statutory easements to which the community scheme will be subject on registration of the amalgamation

  • if the position of services lines has changed (or there is a proposed change) from the position shown on the prescribed diagrams for the community scheme, precinct scheme or neighbourhood scheme before the amalgamation, the consent of each owner of a lot affected by the change must be provided

  • include new plans under section 41 for all access ways that will exist in the community scheme on registration of the amalgamation and

  • be accompanied by a association certificate under the seal of the community association to the effect that the community management statement was amended in accordance with the Community Land Management Act 2021.

Effect of registration

Once the application is in order, the Registrar General will register the application with a Request 11R dealing.

Upon registration of the amalgamation, the precinct scheme or neighbourhood scheme is terminated and the association is dissolved. All assets and property of the terminated precinct or neighbourhood scheme will become assets and property of the community scheme. Similarly, any liability of the terminated scheme will become a liability of the community scheme.

Precinct or neighbourhood lots in the terminated scheme will become development lots in the community. This change in status of the lots will have no impact on any mortgage, lease or other registered interest. These registered interests will be carried over and recorded on the replacement community development lots. See section 63 Community Land Development Act 2021.

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