A development lot in a community or precinct scheme may be severed from the scheme by the registration of an Instrument of severance form 21CIS. See Registrar General's Guidelines for Land dealings
Section 19 Community Land Development Act 2021 and section 17 Community Land Development Regulation 2021 set out the requirements for severance.
Once severed, the lot ceases to be part of its scheme. A neighbourhood lot may not be severed from its scheme.
The instrument of severance must be:
- signed by the owner of the lot and by the association
- accompanied by a replacement schedule of unit entitlement that complies with Schedule 3 Community Land Development Act 2021 and section 17 Community Land Development Regulation 2021 for:
- the community scheme and
- if the severed lot is a precinct development lot, the precinct scheme
- accompanied by a certificate of the planning authority signifying its consent to the severance
- accompanied by a certificate under seal to the effect that consent to the severance has been given by special resolution
- for a community development lot, by the community association or
- for a precinct development lot, by the community association and the precinct association
- accompanied by the consent of each mortgagee, chargee or covenant chargee of the lot
- accompanied by any evidence NSW LRS 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.
Schedule of unit entitlement
Replacement sheets for the schedules of unit entitlement will be prepared on plan Administration Sheets and will be lodged without any drawing sheets to the plans
In the case of a community plan or a precinct plan which contains a revised schedule:
- the unit entitlement column for each lot severed by the instrument must contain the words 'Severed Lot'.
- the total unit entitlements for the scheme must be reduced by the value of the severed lot.
- 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.
- must be accompanied by a completed certificate in Approved form 21 indicating the passing of a special resolution consenting to the severance.
The administration sheets which are lodged to accompany an instrument of severance will be lodged as a replacement sheet and attract a single fee.
Easements must be created for any access or services to the severed lot which will be required as a result of the severance. These easements may burden or benefit the severed lot or the schemes.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/