Northern Territory Second Reading Speeches
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UNIT TITLES AMENDMENT BILL 2001
(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)
Mr Speaker, I move that the bills be now read a second time.
The purpose of the Unit Titles Amendment Bill is to provide for two or more units plan developments within a single building and also to provide for the addition of land to a parcel of land that has already been subdivided pursuant to a units plan.
At present, it is not clear whether the Unit Titles Act permits the subdivision of a building or group of buildings in such a way that there can be:
· separate units plans of subdivisions for part of the building or group of buildings; and
· an overarching body corporate that has responsibility for the common properties and common obligations between the various parts of the building or group of buildings.
Separate units plans are useful where you have buildings comprising different uses where the respective owners of units within the parts of conflicting priorities and interests. For example, a building that has in various parts, a commercial carpark, business offices, hotel and residential accommodation.
The current legislation forces all of these owners into a single body corporate responsible for the building as a whole. The proposal for separate unit plans for each part is designed to minimise the interactions, and thus conflict, between each of the parts of the building. However, a common body corporate is necessary for the purpose of dealing with those matters that are either agreed as being common or which necessarily involve all of the owners of a building. Examples include access ways and the core structure of the building. Legislation permitting developments along these lines exist elsewhere in Australia.
This legislation will bring the Northern Territory into line with most of Australia and allow developers and unit owners to better protect their interests. Further, the approach taken in the Unit Titles Amendment Bill 2001 for these types of developments is to streamline the approvals process by compelling the Registrar-General to proceed with issuing titles provided that planning approval has been obtained and the other requirements of the Unit Titles Act, such as obtaining consent from those parties with an interest in the land whose interest is affected by the development, have been met. The approval process for other types of developments in the Act remain as they are.
These proposals will be implemented by the inclusion of a new part IVC. This part will provide that, on the provision of a satisfactory application by or on behalf of the owner of a parcel of land on which there is a building, the Registrar-General must issue titles for parts of that building. There are a number of matters on which the Registrar-General must be satisfied prior to issuing titles. These include:
· subdivision approval in respect of the proposed building lot and the common property,;
· payment of a fee,;
· appropriate diagrams,;
· disclosure statement include dispute resolution mechanisms; and
· possible security deposit.
Each such part will be called a ‘building lot’. In respect of the entire building and the other land that may be part of the relevant parcel there will be a management corporation responsible for common property. A building lot title may be granted in respect of land that is currently either ordinary freehold title or land that is part of an estate development under part IVBof the Unit Titles Act. Additionally the bill will provide for the conversion of current units under the Unit Titles Act into building lots. The key aspect of the legislation is that it permits building lots to be further subdivided. This further subdivision will occur in accordance with the provisions of parts III and IVA of the Unit Titles Act.
The second issue the proposed legislation addresses is that the current Unit Titles Act does not appear to facilitate the addition of land to the land that is the subject of a units plan. An example of this problem would be the addition of land to a land development that has been subdivided for which there is title under the estate development provisions of the Unit Titles Act. The legislation amends the Unit Titles Act so that land can be added to the land that is the subject of a units plan. The amendment will not affect the other provisions of the Unit Titles Act which provide for the need for consents to changes to a development. It is fairly obvious that adding land to a development has the effect of diluting both ownership of common property and financial responsibility for such common property. These are matters that affect the owners of units and thus should be the subject of the ordinary consent provisions.
The Unit Titles (Consequential Amendments Building Development) Bill makes amendments to a number of other acts that are consequential to amendments to the Unit Titles Act, concerning building lots and estate management lots. In respect of the operation of other acts in relation to building lots, there is one significant point that should be noted. It is that subdivision approval under the Planning Act will be required in order for a building lot to be created.
These bills make the first step in the government’s proposals to reform the laws relating to group titles. This is a complicated area of the law involving most of the land-based professions of the Northern Territory. The Attorney-General’s Department will consult widely with the various professions involved in land development over the next few months. However, the more substantive amendments to the legislation will be considered towards the end of 2001 at the time when the discussion draft of an entirely new scheme is expected to be released for comment.
I commend the bills to honourable members.
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