New South Wales Consolidated Acts

STRATA SCHEMES (LEASEHOLD DEVELOPMENT) ACT 1986 - SECT 22

22 Acquisition of additional common property

(1973 Act, s 19)

(1) In this section, "land" means land under the Real Property Act 1900 (other than land comprised in a qualified or limited folio of the Register or a perpetual lease from the Crown) but does not include a leasehold interest in land evidenced by a lease not registered under that Act.

(2) Subject to subsection (3), a body corporate established for the purposes of a leasehold strata scheme may, pursuant to a special resolution, accept a lease or sublease, or a transfer of a lease or sublease, of land (not being a lot that is comprised in the scheme) which is contiguous:

(a) in any case, to the parcel that is subject to the scheme, or

(b) in the case of a stratum parcel, to the site on which is erected the building part of which is subject to the scheme,

for the purpose of creating, or creating additional, common property.

(3) A body corporate shall not accept a lease or sublease, or transfer of a lease or sublease, referred to in subsection (2) if:

(a) the lease or sublease concerned is subject to a mortgage, charge, covenant charge or writ, or

(b) the term of that lease or sublease would expire after the term of the lease of the common property.

(4) On accepting a lease or sublease, or a transfer of a lease or sublease, in accordance with subsection (2), the body corporate shall forthwith cause the dealing evidencing the transaction to be registered under the Real Property Act 1900 .

(5) The Registrar-General may refuse to register the dealing, if:

(a) it is not accompanied by:

(i) the certificate of title for the land affected by the lease or sublease, and

(ii) the certificate of title for the lease of the common property, or

(b) it is not accompanied by a certificate under the seal of the body corporate certifying that the resolution authorising the acceptance of the lease, sublease or transfer was a special resolution.

(6) On the registration under the Real Property Act 1900 of any such lease, sublease or transfer:

(a) the leasehold interest becomes common property and is subject to the provisions of this Act and the Strata Schemes Management Act 1996 relating to common property,

(b) the body corporate is responsible for all payments and the performance of all duties required of the lessee by the terms of the lease or sublease, as the case may be, and

(c) the Registrar-General shall make in the Register such recordings with respect to the leasehold interest that becomes common property as the Registrar-General considers appropriate.

(7) A body corporate may, pursuant to a special resolution and with the concurrence of the lessor or sublessor, surrender a lease or sublease accepted by it under this section.

(8) On the registration under the Real Property Act 1900 of any such surrender, the Registrar-General shall make in the Register such recordings with respect to the surrender as the Registrar-General considers appropriate.