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 or Transfer or lease of association property

Leasing association property

A community, precinct or neighbourhood association may grant a lease of part but not all of the association property and the lease must be registered under the Real Property Act 1900 (see section 27 Community Land Development Act 2021).

Section 27 Community Land Development Act 2021 requires that the lease be lodged together with an association certificate as in Approved form 21 indicating that:

  • the lease was consented to by special resolution

  • any interest in the land has been released if

    • the lease has not been made subject to the interest, and

    • the interest is not a statutory interest or an interest recorded in the Register, and

    • the association has notice of the interest

  • any by-law restricting the use of the association property no longer affects the interest passing under the lease.

A lease of association property must not be registered unless the initial period has expired (in which case a completed certificate in Approved Form 24 must accompany the lease), or the grant of the lease has been authorised by the Tribunal.

For the purposes of the section the grant of a lease includes granting a sublease or transferring a lease, but only if the sublease or the transfer is not in contravention of the lease.

An association may by special resolution accept a surrender of, or exercise a right of re-entry under a lease under section 27.

Transferring association property

An association may transfer land which forms part of its association property if:

  • the land is not all of the association property

  • the land is not held by it on lease

  • the land is shown as a lot in a plan lodged for registration as a current plan

  • the transfer is registered under the Real Property Act 1900.

Section 28 Community Land Development Act 2021 requires that the following documents be lodged together with the transfer:

  • a replacement sheet for the association property plan showing the altered boundaries of the association property

  • an association certificate in the approved form as in Approved form 21, under the seal of the association and to the effect that:

    • execution of the transfer was authorised by special resolution

    • any interest in the land has been released if

      • the transfer has not been made subject to the interest and

      • the interest is not a statutory interest or an interest recorded in the Register and

      • the association has notice of the interest

    • any by-law restricting the use of the association property no longer affects the interest passing under the transfer.

A transfer of association property in this manner must not be registered unless the initial period has expired (in which case a completed certificate in Approved Form 24 must accompany the transfer), or the transfer has been authorised by the Tribunal.

The plan required must be a deposited plan of subdivision (to be lodged as a normal subdivision) showing the land to be transferred as a single lot without any residue together with appropriate administration sheets.

The effect of registration of the transfer is that the land transferred ceases to be association property.

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