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 set out in Approved Form 27. A development contract comes into effect when it is registered by NSW LRS.

The development contract must describe the parcel of land to which it relates and must identify any land proposed to be added to the scheme.

Warranted development and authorised proposals

A development contract must identify ‘Warranted development – proposed development subject to a warranty’, and ‘Authorised proposals – proposed development not subject to a warranty’ as required by section 46 Community Land Development Act 2021.

NOTE:  The developer is permitted and may be compelled to complete Warranted Development. The developer is permitted to complete Authorised Proposals, but not compelled.

The warranted development and authorised proposals must be set out separately in the development contract, with each part to include:

1. Description of development - indicating the types of buildings proposed, the proposed uses of the lots in the buildings, the proposed building style and the proposed height and density of the buildings - reference may be made to the concept plan.

2. Association property amenities - describing the buildings, services, facilities or infrastructure propose to be built, installed or provided on association property.

3. Working hours (completion of this item is optional)

4. Access and construction zones and related rights over association property

5. Contribution to association property expenses, indicating the manner in which the developer’s liability for expenses relating to the use or maintenance of association property of the scheme is to be determined (see section 48(1) Community Land Development Act 2021). Completion of this item is optional.

6. Easements or covenants proposed to be created burdening or benefiting association property, indicating any which will be registered at this stage

7. Land proposed to be added to the scheme, if relevant. Details should be provided identifying land to be added and whether this is to be added as a development lot, neighbourhood lot or association property.

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.

Concept plan

Concept plan sheet(s) must be provided which separately illustrate the sites proposed for, and the nature of, the buildings and works that would result from the carrying out of all permitted development, and identifying which is warranted development, including:

• the location of buildings proposed to be erected or retained on the parcel

• elevations and sections of those buildings and their external finishes and heights

• perspectives of those buildings

• the proposed finished levels of the land in relation to roads and those buildings

• any additional land that may be added to the scheme

 

Certificate of planning authority

The development contract must include a certification by the planning authority that has granted planning approval for a relevant application 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.

(see section 47(4) Community Land Development Act 2021)

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.

Undertaking by developer

The development contract must also include an undertaking by the developer:

• not cause unreasonable inconvenience to owners of lots in the scheme

• to repair without delay any damage caused to association property or common property by development activities.

Time for conclusion of development contract

Section 58(2) Community Land Development Act 2021 requires a development contract to 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 23 Community Land Development Regulation 2021.