Public Works Act 1981

The Bill provides that a prerequisite consent or other resolution by the body corporate is not required in relation to the transfer of an estate or interest in land in a unit title development if the estate or interest in land is acquired by proclamation under the Public Works Act 1981.

However, the Bill provides, in Clause 7B(3) that no owner of a unit may purport to reach an agreement under Section 17(1) of the Public Works Act 1981 for the acquisition of an estate or interest in land in the unit title development unless the prerequisite consent or other resolution has been given or made.

SOP No 112 proposes to remove subclause (3) from Clause 7B thus removing the restriction on the ability of a unit owner to reach an agreement for the acquisition of land with an authority undertaking public work (amending Clause 7B by omitting subclause (3)).

Turn-over disclosure by original owner to body corporate

SOP No 112 proposes that the statement setting out any interest that the original owner has in any contract or arrangement made by the body corporate up to the time of disclosure must also set out any such interest that an associate of the original owner has (amending Clause 140(1)(b)).

Application by body corporate for cancellation of unit plan

SOP No 112 proposes amendments to Clause 160 including as follows;

• where the unit title development is a stratum estate in leasehold, the lessor of the base land must be served with a copy of the resolution and draft application for cancellation (amending Clause 160 by inserting new subclause (4A));
• amongst the contents of the certificate given by the body corporate to the Registrar-General of Land when applying for the cancellation of a unit plan is to be a requirement for the body corporate to certify that any appeal rights where there is an objection have been exhausted (amending Clause 160 amending subclause (5) by substituting paragraph (a) and inserting new paragraph (ab));
• the omission of the requirement for the body corporate to certify that no unit is subject to any registered caveat, mortgage, charge, lease, or sublease (see below in relation to New Clause 164A) (amending Clause 160(5) by deleting paragraph (c)).

Extinguishment of registered interests etc.

SOP No 112 proposes a new provision dealing with registered interests, caveats and notices of claim entered on the register at the time a unit plan is cancelled. Such registered interests etc are extinguished where a complete certificate as required by Clauses 160(5) (discussed above) and 195 (relating to the certificate) has been provided by the body corporate to the Registrar-General of Land (inserting a new clause, Clause 164A).

Comment

The implication of this is that all unit owners are deemed to be protected by the rights of objection and the fact that the certificate must state the result of the objection process and must also state that any rights or appeal of an objector have been exhausted. This may not be sufficient protection in every case. However the Court does have power (and SOP No 112 elaborates this) under Clause 169 to give directions in respect of a registered interest or caveat or notice of claim in authorising the cancellation and SOP 112 also elaborates the relevant notice requirements under Clause 193.