Development lot in a community or precinct scheme or a neighbourhood lot may be converted to association property by the registration of an Instrument of conversion form 21CE. See Registrar General's Guidelines for Land Dealings. The lot must be freed from all relevant interests including those relating to mortgages, charges, covenant charges, leases and caveats. The instrument of conversion must also be supported by the lodgment of a plan.
If the instrument is converting a neighbourhood lot held by the original owner then it will not be registered unless:
- the initial period has expired (Approved Form 24 is required to be provided)
- there is a development contract in force and the instrument is in accordance with the contract or
- the conversion has been authorised by the Tribunal.
The plan must consist of additional sheets for the Detail Plan consist of replacement sheets for the Association Property plan and be accompanied by Administration Sheets including:
- a replacement schedule of unit entitlement:
- the unit entitlement column for the converted lot should contain the words Converted to Lot 1.
- the unit entitlements of the remaining lots must be apportioned in accordance with section 24 and Schedule 3 sections 2, 9, 10, 11 Community Land Development Act 2021. See note below
- the sheet upon which the schedule appears should also contain an update note as in Approved form 8. This form should be completed by inserting the date of registration of the plan which provided the previous schedule.
- a completed certificate in Approved form 22 indicating the association agrees to the schedule of unit entitlements.
- a completed certificate in Approved form 21 to the effect that the association has passed a special resolution consenting to the conversion.
- execution by the registered proprietor of the lot to be converted and by the association.
- a completed certificate in Approved form 20 indicating the approval of the planning authority to the conversion.
NOTE: if apportioning of unit entitlement for converted lot is not able to be equally distributed in terms of whole numbers in accordance with clause 2, then the aggregate of unit entitlement should be reduced by the value of the converted lot's unit entitlement. For example, if the unit entitlement is 5, the aggregate is 100 and the entitlement cannot be equally distributed, then the new aggregate will be 95.
The additional sheet for the detail plan must be prepared on Plan form 2. The plan may be compiled unless the Registrar General requires a plan of survey. The plan must provide complete dimension for the new boundaries of lot 1.
The replacement sheet for the association must be prepared on Plan form 2. The plan must be compiled and show the new boundaries of lot 1.
The plans which are lodged to accompany an instrument of conversion will attract a fee based upon the number of drawing sheets lodged.
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