The development contract is an optional disclosure document that can be lodged for registration with a community, precinct or neighbourhood plan. It allows the developer to identify future development, to be carried out on association property or affecting the community, precinct or neighbourhood scheme, that is either:
warranted (that the developer can be compelled to complete); or
authorised (that is permitted, but cannot be compelled).
The essential contents of a development contract are set out in section 46 Community Land Development Act 2021. The approved form of a development contract is Approved Form 27
The development contact takes effect upon registration by NSW LRS, and is binding on the:
See Preparing the Contract page for information about how to complete the development contract.
Contents of the development contract
A development contract must describe the parcel of land to which the contract relates and set out any land to be added to the scheme at a later date.
It must separately identify (and give details of) proposals that are Warranted Development and those that are Authorised Proposals.
The developer is permitted and may be compelled to complete Warranted Development.
The developer is permitted to complete Authorised Proposals, but not compelled.
A development contract must also include the following:
A concept plan
A description of the amenities proposed to be provided
Details of access and construction zones, working hours and any related rights over associated property
Undertaking by the developer
A development contract can include additional matters not prescribed by the legislation.
NOTE: A development contract cannot provide for the subdivision of association property without the consent (by special resolution) of the relevant association.
Planning Authority approval
A planning authority that has granted planning approval for a relevant application, must certify on the contract that:
planning approval has been granted to the development proposed by the instruments, plans, and drawings that comprise the development contract and
the instruments, plans and drawings are not inconsistent with the planning approval.
NOTE: A planning authority must not grant planning approval to a relevant application unless the development contract complies with the requirements of Part 7 Community Land Development Act 2021.
Conclusion of development contract
A development contract must specify a time for the conclusion of the contract, being a time not later than:
10 years after the registration of the contract or
a time that is between 10 and 20 years after the registration of the contract, with the approval of the Registrar General (see note).
NOTE: The developer may apply to the Registrar General for approval of the development contract specifying a conclusion date that is between 10 and 20 years after the registration of the contract under section 23 Community Land Development Regulation 2021. The Registrar General may approve such a request if satisfied that the development cannot be completed in 10 years.
The application must be made before or at the time of lodging the development contract for registration. It must contain an explanation as to why the development cannot be completed in 10 years, which may include the following information:
the number of lots and subsidiary schemes proposed to be created before conclusion,
the proposed number of stages for the development of the land in the community scheme and the timing of those changes, and
the details of planning approvals granted for the development of the land in the community scheme.
See section 58 Community Land Development Act 2021 and section 23 Community Land Development Regulation 2021.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/