Termination of Units Plans and Unit Title Schemes Act 2014

approval certificate means:

(b) an order made by the Tribunal on an application under section 10(5)(b) that has the same effect as an approval certificate.

basic scheme, see section 63(3) of the Unit Title Schemes Act 2009.

body corporate, in relation to a development:

(a) if the development is a scheme – see section 5 of the Unit Title Schemes Act 2009; or

building development, see section 4(1) of the Unit Titles Act 1975.

common property, in relation to a development:

(a) if the development is a scheme – see section 33(1) of the Unit Title Schemes Act 2009; or

(b) otherwise – see section 4(1) of the Unit Titles Act 1975.

condominium development, see section 4(1) of the Unit Titles Act 1975.

corporation, see section 4(1) of the Unit Titles Act 1975.

development means a scheme, unit development, building development, condominium development or estate development.

development land means the units and the common property of a development.

draft notice of proposed termination, see section 9(2).

estate development, see section 4(1) of the Unit Titles Act 1975.

higher scheme, in relation to a development, means:

(a) if the development is a scheme – a higher scheme as defined in section 63(2) of the Unit Title Schemes Act 2009; or

(b) otherwise – a development under which one or more building lots or estate development lots have been further subdivided into units and common property.

interest entitlement, in relation to a development, means:

(a) if the development is a scheme – see section 5 of the Unit Title Schemes Act 2009; or

(b) otherwise – a unit entitlement as defined in section 4(1) of the Unit Titles Act 1975.

notice of proposed termination, see section 10(6).

objecting owner, in relation to a termination of a development mentioned in section 11(1), means an owner of a unit in the development who has not voted in favour of the resolution mentioned in that section.

owner, in relation to a unit in a development:

(i) if the development is a scheme – the unit owner under the Unit Title Schemes Act 2009; or

(ii) otherwise – the proprietor of the unit under the Unit Titles Act 1975; and

(b) includes a person who has a share of the ownership of the unit as a joint tenant or tenant in common; and

plan of termination means a plan of termination prescribed by regulation for section 54G of the Land Title Act 2000.

prescribed number of days, in relation to a provision of this Act, means:

(a) if a number of days has been prescribed for the provision by regulation – that number of days; or

(ii) for section 12(2)(b)(i) or 13(2)(b) – 182 days; or

prescribed professional organisation means a professional organisation prescribed by regulation for this Act.

proponent, in relation to a development to which Part 4 applies, means:

(ii) the termination of the development and the redevelopment of the development land; or

(b) a person formed by 2 or more owners of units mentioned in paragraph (a).

required percentage, of the owners of the units in a development to which Part 4 applies, means:

(a) if the development is at least 30 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 80% of the total interest entitlement of the development on that day; or

(b) if the development is at least 20 years of age but less than 30 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 90% of the total interest entitlement of the development on that day; or

(c) if the development is at least 15 years of age but less than 20 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 95% of the total interest entitlement of the development on that day.

scheme, see section 5 of the Unit Title Schemes Act 2009.

schemes supervisor, see section 5 of the Unit Title Schemes Act 2009.

subsidiary scheme, see section 63(1) of the Unit Title Schemes Act 2009.

termination, of a development, means:

(b) if the development is a unit development, building development, condominium development or estate development – cancellation of the units plan.

Tribunal means the Northern Territory Civil and Administrative Tribunal.

unanimous resolution, of a body corporate of a development, means a resolution passed when the number of the votes counted in favour of the resolution is equal to the total number of the units in the development.

unit in relation to a development:

(a) if the development is a scheme – see section 37 of the Unit Title Schemes Act 2009; or

(b) otherwise – see section 4(1) of the Unit Titles Act 1975.

unit development means a development to which Part III of the Unit Titles Act 1975 applies, and includes lots subdivided under section 26Y, and building lots subdivided under section 26ZV, of that Act.

valuer means a person who is a member of a prescribed professional organisation.

(2) The start date for the reckoning of the age of a development for the definition of required percentage in subsection (1) is:

(i) if the date on which the development's buildings were substantially completed (or, in the case of different days, the date on which the first of the development's buildings to be substantially completed was substantially completed) is proven – that date; or

(ii) if the date mentioned in subparagraph (i) is not proven but the date on which occupancy of the development's buildings was first permitted under the Building Act 1993 (or, in the case of different dates, the date on which occupancy of the first of the buildings was first permitted under that Act) is proven – that date; or

(iii) if the dates mentioned in subparagraphs (i) and (ii) are not proven, but the Registrar-General has provided information under section 38 of the Land Title Act 2000 that indicates the earliest date on which a development's buildings existed – that date; or

(b) for a development that does not contain buildings, or if the dates mentioned in paragraph (a)(i), (ii) and (iii) are not proven – the date on which the scheme was formed or the units plan was registered.

(3) A term not defined in this Act but defined in the Land Title Act 2000, Real Property (Unit Titles) Act 1975, Unit Title Schemes Act 2009 or Unit Titles Act 1975 has the same meaning in this Act.

(1) Unless section 72 of the Unit Title Schemes Act 2009 applies, a development may be terminated only under this Act:

(b) if Part 4 applies – by a vote of the required percentage of the owners of the units in the development in accordance with that Part; or

(2) A higher scheme of a development may not be terminated under this Act unless, at the same time, all its subsidiary schemes are also terminated.

This Part applies to the termination, by a resolution of the required percentage of the owners of the units in a development:

(a) that is at least 15 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1); and

(1) If there is no unanimous resolution to terminate a development, the proponent of the termination of the development must make a written application to the schemes supervisor for an approval certificate, accompanied by the fee prescribed by regulation and a draft notice of proposed termination.

(2) A draft notice of proposed termination must contain the following information:

(b) an explanation of the process required under this Part for the termination of the development that:

(i) if the schemes supervisor has published a form of explanation – is in that form; and

(ii) if the development is a unit development, building development, condominium development or estate development – states that there is a requirement that any development resulting from any redevelopment is a scheme;

(c) a statement of the right of an owner of a unit in the development to sell the unit in accordance with this Part if the proposed termination is approved;

(d) a statement of any proposed disposition of the property that is owned by the body corporate immediately before the termination;

(e) if redevelopment of the development land is proposed – a description of the reason for the proposed termination, and a description of the proposed redevelopment, including the following:

(ii) a statement of the approximate date on which it is proposed that the redevelopment would start and be completed;

(iii) the estimated cost of the proposed redevelopment, including a plan for the financing of the proposed redevelopment;

(iv) a proposal for the way in which owners of units in the development, and any tenants, would be dealt with during the carrying out of the works for the proposed redevelopment, and, if applicable, after its completion, including in relation to relocation or a payment to the owners instead of relocation;

(v) if the proposed redevelopment would result in a higher scheme or subsidiary scheme – the information prescribed by regulation;

(vi) if applicable, a proposed scheme statement for the development land after the redevelopment is completed;

(vii) an estimate of the value of the development land after the proposed redevelopment is completed;

(viii) a statement disclosing any arrangements or proposed arrangements with a person for any proposed redevelopment;

(f) any other information about a matter mentioned in paragraphs (a) to (e) or another matter prescribed by regulation.

(1) As soon as practicable after receiving an application under section 9(1), the schemes supervisor must review the application, and do one of the following, within the prescribed number of days after receiving the application:

(a) if satisfied that the draft notice is sufficient to permit the owners of the units in the development to make an informed decision on the proposed termination – issue an approval certificate to the proponent;

(b) if not satisfied that enough information has been provided for the schemes supervisor to decide whether or not to issue an approval certificate – serve on the proponent a request that:

(ii) fixes a date before which the proponent must provide the information;

(c) if not satisfied that the draft notice is sufficient as described in paragraph (a) – do one of the following:

(i) if satisfied that the matters to be addressed for the application to comply with this Part could likely be addressed within a reasonable time – serve on the proponent an explanatory notice that:

(B) fixes a date before which the proponent must address those matters;

(2) If an explanatory notice under subsection (1)(c)(i) is served on the proponent, the proponent may do one of the following before the date fixed in the notice:

(a) address the matters in accordance with the explanatory notice and serve on the schemes supervisor an amended draft notice of proposed termination;

(b) choose not to proceed with the proposed termination and serve a notice withdrawing the application on the schemes supervisor;

(c) appeal to the Tribunal against the explanatory notice, not later than the last day of the prescribed number of days after the date fixed in the notice.

(3) The proponent is taken to have abandoned the application for the approval certificate if:

(a) a request under subsection (1)(b), or an explanatory notice under subsection (1)(c)(i), is served on the proponent; and

(b) the proponent does not provide the information, or address the matters, before the date fixed in the request or notice, or any later date agreed to by the schemes supervisor.

(4) If an amended draft notice of proposed termination is served under subsection (2)(a), the schemes supervisor:

(a) must deal with the amended draft notice of proposed termination as though it were the original draft notice of proposed termination that accompanied the application served under section 9(1); but

(b) must not serve another request under subsection (1)(b) or explanatory notice under subsection (1)(c)(i) after reviewing the amended draft notice.

(5) If the schemes supervisor does not do one of the actions required by subsection (1) before the last day of the prescribed number of days applicable to that subsection:

(a) the application for an approval certificate is taken to have been rejected; and

(b) the proponent may apply to the Tribunal, not later than the last day of the prescribed number of days after the last day of the prescribed number of days applicable to subsection (1), for an order that has the same effect as an approval certificate; and

(c) if the schemes supervisor does one of the actions mentioned in subsection (1) before the Tribunal has begun to hear the application under paragraph (b):

(i) the action is as valid as if it had been done before that last day of that prescribed number of days; and

(iii) the schemes supervisor must, if the proponent so requests, pay to the proponent an amount not greater than the amount of any filing or hearing fee paid in relation to the application by the proponent.

(6) A draft notice of proposed termination (or amended draft notice of proposed termination) becomes the notice of proposed termination for this Act:

(a) if the proponent has applied to the Tribunal for an order under subsection (5)(b) – when the order made by the Tribunal that has the same effect as an approval certificate takes effect; or

(b) otherwise – when the approval certificate is issued under this section.

(1) As soon as practicable after receiving an approval certificate under section 10, a proponent must serve a request on the body corporate asking that a meeting of the body corporate be held to vote on a resolution for the termination of the development in accordance with the notice of proposed termination.

(a) notify each owner and each mortgagee of a unit in the development of the meeting; and

(b) include a copy of the notice of proposed termination with the notice to each owner and each mortgagee of the meeting; and

(c) hold the meeting not earlier than 3 months and not later than 12 months after the date of the approval certificate.

(b) requests to be heard at the meeting to object to the proposed termination of the development.

(4) If the body corporate does not do what it is required to do under subsection (2):

(a) the proponent may apply to the Tribunal, within the prescribed number of days, for an order requiring the body corporate to do what it is required to do; and

(b) the Tribunal may make any order it considers necessary, including the following:

(i) an order requiring the body corporate to do what it is required to do;

(ii) an order requiring another person to do what the body corporate is required to do instead of the body corporate.

(1) If, at a meeting held after a request is served under section 11(1), the resolution is passed by the required percentage of the owners of the units in the development:

(a) the termination of the development, in accordance with the notice of proposed termination and this Act, is approved; and

(b) the body corporate must, within 14 days after the resolution is passed, serve a copy of the resolution on each owner and each mortgagee of a unit in the development; and

(c) an objecting owner must do one of the following, within the prescribed number of days after the resolution is served under paragraph (b):

(i) give a notice in writing to the proponent stating that the objecting owner is no longer to be considered an objecting owner;

(ii) give a notice in writing to the proponent stating that the objecting owner is selling the unit otherwise than under section 13;

(iii) serve the written notice of intention to sell the unit under section 13;

(d) a mortgagee who objects to the proposed termination may apply to the Tribunal, within the prescribed number of days after the resolution is served on the mortgagee under paragraph (b), for an order under Part 5.

Note for subsection (1)

See section 19 for how and when the termination takes effect.

(2) The following applies to an objecting owner who gives or serves a notice mentioned in subsection (1)(c):

(a) if the notice is given under subsection (1)(c)(i) – the objecting owner must cooperate in the termination of the development;

(i) the objecting owner must, within the prescribed number of days after giving the notice, provide a copy of a binding contract to purchase the objecting owner's unit to the proponent; and

(ii) the objecting owner must proceed with the sale as soon as practicable after providing the copy, and in any event, not later than 42 days after providing it;

(c) if the notice is served under subsection (1)(c)(iii) – the objecting owner must proceed with the sale in accordance with section 13 as soon as practicable.

(3) If an objecting owner does not do one of the things mentioned in subsection (1)(c) as required by that subsection, or comply with subsection (2)(a) or (c) if applicable, the proponent may apply to the Tribunal, within 28 days after the last day of the prescribed number of days applicable to subsection (1)(c), for an order for the sale of the objecting owner's unit to the proponent:

(a) at a price fixed by the Tribunal after it has received the written report mentioned in subsection (5); and

(b) on the other terms and conditions ordered by the Tribunal and that comply with any requirements prescribed by regulation as mentioned in section 13(5)(a)(ii).

(4) If subsection (2)(b) applies and an objecting owner does not comply with it, the proponent may apply to the Tribunal for an order for the sale of the objecting owner's unit to the proponent:

(a) at a price fixed by the Tribunal after it has received the written report mentioned in subsection (5); and

(b) on the other terms and conditions ordered by the Tribunal and that comply with any requirements prescribed by regulation as mentioned in section 13(5)(a)(ii).

(5) The Tribunal must not fix a price under subsection (3)(a) until it has received a written report of a valuer's expert advice on the value of the unit, assessed on the basis mentioned in section 13(4)(d)(i).

(a) an application under subsection (1)(c)(iv) or (d) must be served on the following persons:

(b) an application under subsection (3) must be served on the following persons:

(7) The effect of an application mentioned in subsection (1)(c)(iv) or (d) is to suspend termination of the development until the application or, if applicable, an appeal under section 18, has been decided.

(8) If a person acquires, or enters into a binding agreement for the acquisition of, a unit in the development after the resolution is passed but before the details and information are registered under subsection (9)(b):

(a) the body corporate must, as soon as practicable and in any event within 14 days after the body corporate becomes aware of the acquisition or entering into of the agreement, serve a copy of the resolution mentioned in subsection (1) on the person; and

(i) this Act applies to the person as if the person were an objecting owner; and

(ii) the person must do one of the things mentioned in subsection (1)(c), within the prescribed number of days after the copy of the resolution is served under paragraph (a).

(a) the body corporate must give to the Registrar-General, within 14 days after the date of the meeting:

(ii) any document or information prescribed by regulation; and

(iii) the fee prescribed by regulation; and

(b) the Registrar-General must, as soon as practicable after receiving the documents under paragraph (a), register the notice of proposed termination, and the information prescribed by regulation, in the land register kept under section 6 of the Land Title Act 2000; and

(c) a person who acquires, or enters into a binding agreement for the acquisition of, a unit in the development after the details and information are registered under paragraph (b) has the same rights and duties as the owner from whom the person has acquired the unit; and

(d) the proponent must pay the body corporate, on demand, the amount of the fee that the body corporate has paid under paragraph (a)(iii).

(10) The body corporate may apply to the Tribunal for an extension of the 14 days mentioned in subsection (9)(a).