Community Titles Act 2018

sections 1 and 2  — on the day on which this Act receives the Royal Assent;

the rest of the Act — on a day fixed by proclamation, and different days may be fixed for different provisions.

This Act provides for a form of subdivision of land referred to as subdivision by a community scheme and sets out requirements for that form of subdivision.

Relevant planning approvals must be obtained under the Planning and Development Act 2005 for the subdivision of land by a community scheme.

Each community titles scheme comprised in a community scheme is to be incorporated in the Register, and certificates of title for lots in the scheme are to be created for community titles, under the Transfer of Land Act 1893.

Consequently, this Act must be read together with the Planning and Development Act 2005 and the Transfer of Land Act 1893 to gain a proper understanding of the legislative framework for the subdivision of land by a community scheme.

This Act also contains provisions about the governance and operation of community schemes and about scheme managers.

Land may be subdivided by a community scheme if —

it comprises the whole of a parcel of land; and

the parcel of land is freehold land held in fee simple and comprised in a single certificate of title under the Transfer of Land Act 1893; and

the parcel of land is not already subdivided by a strata titles scheme under the Strata Titles Act 1985; and

the parcel of land is not a caravan park or camping ground within the meanings given in the Caravan Parks and Camping Grounds Act 1995.

A community scheme can be comprised of up to, but not more than, 3 tiers of community titles schemes.

A tier 1 scheme is a scheme for the creation of community titles on registration of the scheme so as to —

effect a physical division of a parcel of land into —

2 or more lots; or

2 or more lots and common property;

allow for the lots to be owned and sold or otherwise dealt with separately (except for any lots that are subdivided by tier 2 schemes); and

require the common property to be administered by a community corporation that comes into existence under this Act on registration of the community titles scheme; and

limit how the common property may be dealt with.

A parcel of land subdivided by a tier 1 scheme is referred to as a tier 1 parcel.

A lot in a tier 1 scheme is referred to as a tier 1 lot except if the lot is subdivided by a tier 2 scheme.

The common property in a tier 1 scheme is referred to as tier 1 common property.

A tier 2 scheme is a scheme for the creation of community titles on registration of the scheme so as to —

effect a physical division of a tier 1 lot into —

2 or more lots; or

2 or more lots and common property;

allow for the lots to be owned and sold or otherwise dealt with separately (except for any lots that are subdivided by tier 3 schemes); and

require the common property to be administered by a community corporation that comes into existence under this Act on registration of the community titles scheme; and

limit how the common property may be dealt with.

A tier 1 lot subdivided by a tier 2 scheme is referred to as a tier 2 parcel.

A lot in a tier 2 scheme is referred to as a tier 2 lot, except if the lot is subdivided by a tier 3 scheme.

The common property in a tier 2 scheme is referred to as tier 2 common property.

A tier 3 scheme is a scheme for the creation of community titles on registration of the scheme so as to —

effect a physical division of a tier 2 lot into —

2 or more lots; or

2 or more lots and common property;

allow for the lots to be owned and sold or otherwise dealt with separately; and

require the common property to be administered by a community corporation that comes into existence under this Act on registration of the community titles scheme; and

limit how the common property may be dealt with.

A tier 2 lot subdivided by a tier 3 scheme is referred to as a tier 3 parcel.

A lot in a tier 3 scheme is referred to as a tier 3 lot.

The common property in a tier 3 scheme is referred to as tier 3 common property.

Lots in a community titles scheme are defined on the scheme plan for the community titles scheme.

A lot can be comprised of non‑contiguous parts shown on the scheme plan for the community titles scheme.

Lots may be defined on the scheme plan for a community titles scheme in either of the following ways —

as lots with defined upper and lower boundaries as well as lateral boundaries, with at least part of each lot defined by reference to a building shown on the scheme plan (a scheme building);

as lots defined by reference to an area of land, regardless of whether or not there are buildings on the land.

For a lot defined by reference to a scheme building —

if a boundary is defined by reference to a wall — the reference is to the inner surface of the wall; and

if a boundary is defined by reference to a floor — the reference is to the upper surface of the floor; and

if a boundary is defined by reference to a ceiling — the reference is to the under surface of the ceiling; and

the lot does not include the following —

space occupied by a vertical structural member, not being a wall, of a building;

utility conduits except conduits that are for the exclusive use or enjoyment of the lot;

space enclosed by a structure enclosing utility conduits except such a structure enclosing conduits that are for the exclusive use and enjoyment of the lot.

However —

subject to paragraph (b), subsection (4) does not apply if a lot is expressly defined in a contrary manner on a scheme plan; and

if any part of a lot defined by reference to a scheme building is above or below any part of another lot defined by reference to the scheme building, subsection (4) cannot be excluded.

A lot defined by reference to an area of land may include upper and lower boundaries as well as lateral boundaries, provided the land above or below the lot (as the case requires) is common property.

A community titles scheme in which lots are defined as set out in subsection (3)(a) is a community titles (building) scheme.

A community titles scheme in which lots are defined as set out in subsection (3)(b) is a community titles (land) scheme.

All lots and parts of lots in a community titles scheme must be defined in the same way, that is, the way described in subsection (3)(a) or the way described in subsection (3)(b).

A lot in a community titles (building) scheme cannot be subdivided by a community titles scheme that is a community titles (land) scheme.

A tier 1 lot or tier 2 lot in a community titles (land) scheme can be subdivided by a community titles scheme that is either a community titles (building) scheme or a community titles (land) scheme.

A change in the definition of a lot in a community titles scheme does not, of itself, affect any item registered or recorded for the scheme in the Register (even if the lot is assigned a new identifying number).

Damage to, or destruction or removal of a wall, floor, ceiling or other structural element by reference to which a lot in a community titles (building) scheme is defined does not of itself affect the definition of the boundaries of the lot (which remain as defined on the scheme plan).

If a scheme plan identifies an encroachment outside the tier parcel that is to be controlled and managed as part of a lot, the encroachment is to be regarded, for this Act, as if it were part of the lot.

The common property in a community titles scheme is —

that part of the tier parcel subdivided by the community titles scheme that does not form part of a lot in the community titles scheme; and

temporary common property.

The common property includes, for a community titles (building) scheme, those parts of a scheme building that do not form part of a lot.

The common property does not include —

any land vested in the Crown under the Planning and Development Act 2005 section 152; or

any dedicated road under the Planning and Development Act 2005 section 168.

If a scheme plan identifies an encroachment outside the tier parcel that is to be controlled and managed as common property, the encroachment is to be regarded, for this Act, as if it were common property.

A lot or common property is in or belongs to the community titles scheme under which it is created.

A tier 2 parcel belongs to the tier 1 scheme under which the lot subdivided to become the tier 2 parcel is created.

A tier 3 parcel belongs to the tier 2 scheme under which the lot subdivided to become the tier 3 parcel is created.

A tier 2 scheme belongs to the tier 1 scheme to which its tier 2 parcel belongs.

A tier 3 scheme belongs to the tier 2 scheme to which its tier 3 parcel belongs and also to the tier 1 scheme to which that tier 2 scheme belongs.

A community titles scheme is related to each community titles scheme to which it belongs or that belongs to it and the community corporations of the related schemes are related community corporations.

The tier 1, 2 and 3 schemes that together comprise a community scheme belong to the community scheme.