Part 2 Scope of the Act

(1) This Act provides for the division of land into lots and common property.

(2) A lot created by division under this Act is a community lot or a development lot.

(1) Land comprised in an allotment may be divided into two or more community lots (primary lots) and common property by a primary plan of community division.1

(2) A primary lot created by a primary plan of community division under subsection (1) may be divided into two or more community lots (secondary lots) and common property by a secondary plan of community division.

(3) A secondary lot created by a secondary plan of community division under subsection (2) may be divided into two or more community lots (tertiary lots) and common property by a tertiary plan of community division.

Explanatory Note—

1 The first level of division under this Act is into primary lots and common property. The Act does not require primary lots to be further divided into secondary lots and it is envisaged that most divisions (especially in the smaller schemes) will not go beyond the primary level.

(1) A plan of community division may, in addition to dividing land into community lots and common property, create one or more development lots to enable division of the community parcel to be undertaken in stages.

(2) The land comprised in a development lot will be divided during a subsequent stage or stages in accordance with a development contract.

(3) The division of a development lot results in the creation of community lots of the same kind as those created in previous stages1 and may involve the creation of common property as well.

(4) Subject to the scheme description and the development contract, the owner of a development lot may, if he or she wishes to, divide the lot in stages.

Explanatory Note—

1 For example, if a plan of community division divides land into primary lots, common property and a development lot, the lots created by subsequent division of the development lot can only be primary lots.

(1) A plan of community division (to be called a strata plan) may create community lots with defined upper and lower boundaries as well as lateral boundaries.

(2) Each strata lot must be wholly or partly within a building that has been erected on the community parcel and the boundaries of the lots, or parts of the lots, that are within the building must be defined by reference to the building.

(1) A community corporation is established when a plan of community division is deposited by the Registrar-General in the Lands Titles Registration Office.

(2) The owners of the community lots are the members of the community corporation.

(3) The corporation is the mechanism by which the owners of community lots participate in the administration of the community parcel.

(1) Except in the case of a small scheme (see section 15), the original owner of the community parcel (the developer) is required to lodge a description of the scheme for the division, development and administration of the community parcel (the scheme description) with the plan of community division.

(2) The scheme description is filed with the community plan by the Registrar-General when depositing the plan in the Lands Titles Registration Office.

(3) Its purpose is to provide a brief description of the nature of the scheme to which the relevant development authority has given its consent for the benefit of persons considering purchasing or entering into any other dealing with a lot created by the scheme.

(4) The by-laws of the scheme and a development contract (if any) relating to the scheme must be consistent with the scheme description.

(1) By-laws may be used to regulate—

(a) the use and enjoyment of the common property; and

(b) the purpose or purposes for which community lots may be used; and

(c) the design, construction and appearance of buildings on the common property and the community lots and the landscaping of community lots.

(2) The first by-laws are lodged with the application for division and may be varied from time to time by special resolution1 of the community corporation.

Explanatory Note—

1 Except where the number of votes that may be cast in respect of each lot is to be changed in which case a unanimous resolution is required—see section 87(2).

(1) If the scheme description indicates that the community parcel is to be (or is likely to be) divided in stages—

(a) the land to be divided in a subsequent stage must be shown on the community plan as a development lot; and

(b) the developer must execute a development contract requiring him or her to apply for division of that land at a later date in accordance with the scheme description.1

(2) If the scheme description indicates that the developer is to (or is likely to) erect buildings or other improvements on a development lot or the common property, the developer must execute a development contract requiring the developer to erect the buildings or make the improvements in accordance with the scheme description.

(3) If the scheme description indicates that a community lot is to be (or is likely to be) divided or otherwise developed in a particular manner or for a particular purpose, the developer must execute a development contract requiring the developer to divide or develop the lot in that manner or for that purpose.

(4) Successive owners of the community lot are bound by the contract referred to in subsection (3).

Explanatory Note—

1 A developer can be required by a development contract to divide a primary, secondary or tertiary parcel in stages. A part of the parcel (a development lot) is set aside for this purpose. A developer can also be required by a development contract to divide a primary lot by a secondary plan or a secondary lot by a tertiary plan (see subsection (3)). Although this division occurs after the division of the primary or secondary parcel it is not referred to in this Act as staged division.