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

Leasehold strata plan

The Strata Schemes Development Act 2015 enables land to be subdivided into a leasehold strata scheme.

Plans which are intended to be registered as a leasehold scheme are prepared in the same manner as a freehold scheme with the following differences:

  • the administration sheets must indicate it is a leasehold strata scheme
  • there must be leases for each of the proposed lots and the common property in the scheme.

Leases

If it is the intention to create a leasehold strata scheme, the plan must be supported by leases for each of the lots and the common property.

Existing leases to remain

The leases for the lots may have commenced prior to registration of the plan and if the following criteria are met it may be possible for these leases to subsist for the lots after the scheme has commenced:

  • The terms of the leases must be expressed to expire on the same day. If there is an option to renew it must be consistent for all leases.
  • Each lease must be for a part of the parcel that corresponds to a lot shown in the plan. This must be supported by evidence.
  • There must be a lease for the common property lodged for registration. The term of the lease must be expressed to commence upon registration of the plan and to expire at the same time as the leases for the lots. If there is an option to renew it must be consistent with the leases for the lots.

Existing leases to be replaced

If there are lease(s) for all or part of the land in the proposed scheme these maybe replaced by new leases for the lots providing the following criteria is met:

  • The replacement leases are expressed to be in substitution for the existing leases.
  • There must be a lease for the common property.
  • The terms of the leases must be expressed to commence upon registration of the plan and to all expire at the same time. If there is an option to renew it must be consistent for all leases.
  • All leases must be lodged for registration.

No existing leases

Leases must be prepared for each lot and the common property in the strata plan.

The leases must meet the following criteria:

  • The terms of the leases must be expressed to commence upon registration of the plan and to all expire at the same time. If there is an option to renew it must be consistent for all leases.
  • All leases must be lodged for registration.

In regard to the preceding items see section 11 and 12 Strata Schemes Development Act 2015.

Execution of leases

All leases should be executed by the registered proprietor of the freehold title as lessor.

The lease for the common property should be executed by the developer on behalf of the (proposed) owners corporation.

The leases for the lots must be executed by the lessees. This will either be the developer or the intended registered proprietor of the leasehold estate for each lot.