Effect of strata development contract
81 Effect of strata development contract
A strata development contract has effect as an agreement under seal containing the covenants specified in Schedule 3 entered into by the owners corporation and each person who for the time being is any of the following—
the developer of the strata scheme,
if the scheme is a leasehold strata scheme—the lessor of the scheme,
an owner of a lot, other than the developer,
a registered mortgagee, chargee, covenant chargee or lessee, or an occupier, of a lot.
The contract ceases to have effect—
in relation to a person described in subsection (1) (a), (b), (c) or (d), when the person ceases to be a person so described, and
in relation to all of the persons described in subsection (1), when the development scheme to which the contract relates is concluded.
Subsection (2) does not affect an obligation incurred by a person, or a right that accrued to a person, under the contract before it ceased to have effect in relation to the person.
A lessee entitled under a lease to immediate possession of a development lot is taken to be the developer, and the person who would otherwise be the developer is taken not to be the developer, for the purposes of this Act, the regulations and the strata development contract.
A mortgagee, chargee or covenant chargee in possession of a development lot is taken to be the developer, and the person who would otherwise be the developer is taken not to be the developer, for the purposes of this Act, the regulations and the strata development contract.
A strata development contract does not permit development to be carried out in contravention of this Act or any other Act or law.
A provision in any other contract or instrument under which a strata development contract is excluded, modified or restricted is void.
A covenant entered into under a strata development contract does not merge on the transfer of a lot.
This section does not affect a right or remedy a person may have apart from a right or remedy under a strata development contract.
However, the Strata Schemes Management Act 2015 does not apply in relation to matters arising under a strata development contract.
Note.
A strata development contract for a strata scheme is void to the extent that it is inconsistent with a strata management statement for the scheme. See section 105 (7).
This provision refers to the regulations (the regulations
). Made under this Act:
This Act’s bill:Explanatory memorandumSecond reading speech
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