New South Wales Consolidated Acts

STRATA SCHEMES (LEASEHOLD DEVELOPMENT) ACT 1986 - SECT 16

16 Conversion of lots into common property

(1973 Act, s 13)

(1) One or more lots may be converted into common property by the registration, as a notice of conversion, of a notice in the approved form, being a notice executed by the lessor under the leasehold strata scheme concerned and the lessee of that lot, or that lessor and the lessees of those lots, and by the body corporate.

(2) A notice shall not be registered as a notice of conversion unless:

(a) it is accompanied by a strata certificate in respect of the lot or lots to which it relates given by the local council in accordance with section 66 (6) or by an accredited certifier in accordance with section 66A (6),

(b) in the circumstances set out in subsection (2A)-it is accompanied by:

(i) a certificate under the seal of the body corporate certifying that the certificate referred to in paragraph (a) was given after the expiration of the initial period or that there was no initial period, or

(ii) a certified or office copy of the minute of an order made under section 182 of the Strata Schemes Management Act 1996 authorising the registration of the notice, and

(c) every mortgage, charge, covenant charge, current lease, caveat or writ recorded in the folio of the Register for the lease of the lot, or each lot, to which the notice relates has, in so far as it affects any such lease, been discharged or surrendered, or withdrawn or otherwise disposed of, as the case may be.

(2A) A notice is required to be accompanied by a certificate or certified or office copy if:

(a) the land to which the notice relates is held by the original lessee (not being an original lessee who holds all lots in the strata scheme concerned), and

(b) a certificate under subsection (2) (b) or section 11 (2) (d) or 32 (4) (b) has not previously been lodged in the office of the Registrar-General.

(3) Subsections (2) (a) and (2) (b) do not apply to or in respect of a notice lodged for registration as a notice of conversion by a person or body who or which, but for section 3, would not be bound by this Act.

(4) On registration of a notice of conversion, the lease of any lot converted into common property is determined and the lot vests in the body corporate as lessee for the residue of the term specified in the lease of the common property.

(5) As soon as practicable after the registration of a notice of conversion, the Registrar-General shall:

(a) cancel the folio of the Register for the lease of the converted lot, and

(b) make such other recordings in the Register as the Registrar-General considers appropriate.