Community Titles

A Community Titled Plan is the division of land into at least two lots and an area of Common Property.  This will typically include shared services and a common driveway.

Upon deposit of a Community Plan a Corporation is formed comprising members which consist of the Lot Owners commonly known as the Body Corporate.  As time goes on, a Body Corporate holds voting rights as to the use and enjoyment of the Common Property and can choose to amend By-Laws and other aspects of the division by a unanimous resolution.

Members of the Body Corporate will be subject to administration, insurance and maintenance fees.

Community Titled divisions can range anywhere from two Lots all the way to multistorey apartments with a mixed use of residential and commercial aspects.  These are often governed by Primary, Secondary and Tertiary schemes.

By-Laws

Each Community Titled division must have By-Laws that set out the obligations of the Community Corporation.  These By-Laws dictate how a Community Corporation can act, and how common areas can be used.

A penalty can be incurred by an individual or by a Community Corporation that doesn’t adhere to these By-Laws.

Scheme Description

The Scheme Description is a document designed to give up-front notice to prospective owners of a Community Lot, Community Strata Lot and Development Lot as to the nature of the scheme and any binding provision or requirement to develop a lot.

A scheme description must:

• identify the community parcel and the lots and common property into which the parcel is to be divided;
• indicate the purpose(s) for which the lots and common property may be used; and
• specify the standard of buildings and other improvements made or to be made to the lots or common property.

The scheme description will also include details of any proposed staged developments to give owners an indication as to the final size of the scheme, time frames in which it will be completed and details of the nature and scope of a Lot owner’s obligation to develop a Lot in a particular manner.

A scheme description can also be amended. It must be supported by a unanimous resolution of the corporation and be accompanied by a copy of the Scheme Description as amended, endorsed with the consent of the relevant planning authority.

Development Contracts

It is not uncommon for developers to create a Development Lot for division of the land at a later date.  In this instance, a Development Contract is required.

The Development Contract must contain certain undertakings of the developer including:

• to cause as little interference with the right of use and enjoyment of lot owners; and
• make good any damage caused to common property or a lot by the developer; and
• means by which the developer will have access to a development lot during construction and the times that access can occur.