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Queensland
Housing Legislation
Amendment Bill 2005
Queensland
Housing Legislation Amendment Bill 2005
Contents
Page
Part 1 Preliminary
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Part 2 Amendment of Housing Act 2003
3 Act amended in pt 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
4 Amendment of s 113 (Chief executive's power to sell houses to
eligible persons) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
5 Amendment of s 134 (Other lease under the repealed Act, s 24) 7
6 Amendment of s 135 (Sale, lease or arrangements under the
repealed Act, s 24A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
7 Replacement of s 150 (Land Act 1994 applies to deed of grant) . 7
150 Deed of grant to be issued under Land Act 1994 . . . . 7
8 Insertion of new pt 10, div 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Division 6 Transitional provisions for Housing Legislation
Amendment Act 2005
153 Lease under s 113 . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
154 Lease under the repealed Act, s 24A . . . . . . . . . . . . . 8
155 Delegation by Minister of powers under Land Act
1994 ................................ 9
Part 3 Amendment of Housing (Freeholding Of Land) Act 1957
9 Act amended in pt 3 and schedule . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Insertion of new s 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 Dictionary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Omission of pt 2, hdg (Provision for the freeholding of certain
leaseholds held under the Housing Act 2003) . . . . . . . . . . . . . . . 10
12 Amendment of s 3 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . 10
13 Omission of pt 2, div 1 (Homes and home sites) and pt 2, div 2,
hdg (Industrial, trading and business sites) . . . . . . . . . . . . . . . . . 10
14 Insertion of new pt 2 and pt 3, hdg . . . . . . . . . . . . . . . . . . . . . . . . 10
2
Housing Legislation Amendment Bill 2005
Part 2 Homes and home sites
Division 1 Preliminary
3A Declared percentage . . . . . . . . . . . . . . . . . . . . . . . . . 10
Division 2 Voluntary conversion of residential leases to
freehold land
Subdivision 1 Residential leases other than conversion in
progress leases
3B Application of sdiv 1 . . . . . . . . . . . . . . . . . . . . . . . . . . 11
3C Lessee's application to convert residential lease . . . . 11
4 Chief executive's offer to convert . . . . . . . . . . . . . . . . 11
4A Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
4B Acceptance of offer to convert . . . . . . . . . . . . . . . . . . 13
4C How conversion takes effect. . . . . . . . . . . . . . . . . . . . 13
Subdivision 2 Conversion in progress leases
5 Application of sdiv 2 . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5A Purchase price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
5B Acceptance and payment of purchase price . . . . . . . 15
Division 3 Automatic conversion of residential leases to
freehold land
Subdivision 1 Preliminary
5C Application of div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
6 Definitions for div 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
6A Meaning of prescribed change of ownership . . . . . . . 18
Subdivision 2 Process for automatic conversion of residential
leases to freehold land
6B Cancellation of lease on registration of transfer . . . . . 18
6C Conversion cost may be paid before issue of deed
of grant ............................... 19
7 Creation of chief executive's charge . . . . . . . . . . . . . . 19
7A Requirement to pay conversion cost . . . . . . . . . . . . . 20
7B Payment period--deceased lessee . . . . . . . . . . . . . . 21
7C Enforcement of chief executive's charge--notice of
intention to sell land . . . . . . . . . . . . . . . . . . . . . . . . . . 21
8 Release of chief executive's charge on payment of
conversion cost etc. . . . . . . . . . . . . . . . . . . . . . . . . . . 23
8A Sale of land by chief executive . . . . . . . . . . . . . . . . . . 23
8B Priority of local government charge preserved. . . . . . 25
9 Chief executive's charge not affected by mortgagee
sale .................................. 25
3
Housing Legislation Amendment Bill 2005
Subdivision 3 Miscellaneous provisions
9A Condition of unconverted lease . . . . . . . . . . . . . . . . . 26
9B Notification about application of div 3 to
unconverted leases to be kept with register . . . . . . . . 26
10 Disclosure requirement--contract for sale of
unconverted lease . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
10A No compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
15 Insertion of new pt 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Part 4 Transitional provision for Housing Legislation
Amendment Act 2005
11 Continued application of previous pt 2, div 1 for
residential freeholding leases. . . . . . . . . . . . . . . . . . . 28
16 Insertion of new sch 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Schedule 2 Dictionary
Schedule Consequential amendments . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Housing (Freeholding of Land) Act 1957 . . . . . . . . . . . . . . . . . . . 32
2005
A Bill
for
An Act to amend the Housing Act 2003 and the Housing
(Freeholding of Land) Act 1957
s1 6 s4
Housing Legislation Amendment Bill 2005
The Parliament of Queensland enacts-- 1
Part 1 Preliminary 2
Clause 1 Short title 3
This Act may be cited as the Housing Legislation Amendment 4
Act 2005. 5
Clause 2 Commencement 6
This Act commences on 1 July 2006. 7
Part 2 Amendment of Housing Act 8
2003 9
Clause 3 Act amended in pt 2 10
This part amends the Housing Act 2003. 11
Clause 4 Amendment of s 113 (Chief executive's power to sell 12
houses to eligible persons) 13
(1) Section 113(1AB) and (6) to (6J)-- 14
omit. 15
(2) Section 113(1A), `to (1AB)'-- 16
omit, insert-- 17
`and (1AA)'. 18
s5 7 s8
Housing Legislation Amendment Bill 2005
Clause 5 Amendment of s 134 (Other lease under the repealed Act, 1
s 24) 2
Section 134-- 3
insert-- 4
`(4) However, the Land Act 1994, chapter 4, part 3, division 3,1 5
does not apply for converting the lease to freehold land. 6
`(5) The Housing (Freeholding of Land) Act 1957, part 2,2 applies 7
for converting the lease to freehold land. 8
`(6) For subsection (3), a reference in the Land Act 1994 to the 9
Minister is taken to be a reference to the Minister 10
administering this Act.'. 11
Clause 6 Amendment of s 135 (Sale, lease or arrangements under 12
the repealed Act, s 24A) 13
Section 135-- 14
insert-- 15
`(4) On 1 July 2006, this section stops applying to a lease. '. 3
16
Clause 7 Replacement of s 150 (Land Act 1994 applies to deed of 17
grant) 18
Section 150-- 19
omit, insert-- 20
`150 Deed of grant to be issued under Land Act 1994 21
`A deed of grant required under this Act to be issued must be 22
issued under the Land Act 1994.'. 23
Clause 8 Insertion of new pt 10, div 6 24
Part 10-- 25
insert-- 26
1 Land Act 1994, chapter 4 (Land holdings), part 3 (Leases), division 3 (Conversion of
tenure)
2 Housing (Freeholding of Land) Act 1957, part 2 (Homes and home sites)
3 See section 154 (Lease under the repealed Act, s 24A).
s8 8 s8
Housing Legislation Amendment Bill 2005
`Division 6 Transitional provisions for Housing 1
Legislation Amendment Act 2005 2
`153 Lease under s 113 3
`(1) This section applies to a lease granted under section 1134 that 4
was in force immediately before 1 July 2006. 5
`(2) Section 113 continues to apply to the lease while the lease is 6
in force. 7
`(3) The lease is taken to be a perpetual lease for residential 8
purposes under the Land Act 1994. 9
`(4) However, the Land Act 1994, chapter 4, part 3, division 3,5 10
does not apply for converting the lease to freehold land. 11
`(5) The Housing (Freeholding of Land) Act 1957, part 2,6 applies 12
for converting the lease to freehold land. 13
`(6) For subsection (3), a reference in the Land Act 1994 to the 14
Minister is taken to be a reference to the Minister 15
administering this Act. 16
`154 Lease under the repealed Act, s 24A 17
`(1) This section applies to a lease granted under the repealed Act, 18
section 24A,7 that was in force immediately before 1 July 19
2006. 20
`(2) The lease is taken to be a perpetual lease for residential 21
purposes under the Land Act 1994. 22
`(3) However, the Land Act 1994, chapter 4, part 3, division 3 does 23
not apply for converting the lease to freehold land. 24
`(4) The Housing (Freeholding of Land) Act 1957, part 2, applies 25
for converting the lease to freehold land. 26
4 Section 113 (Chief executive's power to sell houses to eligible persons)
5 Land Act 1994, chapter 4 (Land holdings), part 3 (Leases), division 3 (Conversion of
tenure)
6 Housing (Freeholding of Land) Act 1957, part 2 (Homes and home sites)
7 Repealed Act, section 24A (Power of commission to provide home sites)
s9 9 s 10
Housing Legislation Amendment Bill 2005
`(5) For subsection (2), a reference in the Land Act 1994 to the 1
Minister is taken to be a reference to the Minister 2
administering this Act. 3
`155 Delegation by Minister of powers under Land Act 4
1994 5
`(1) The Minister may delegate the Minister's powers under a 6
prescribed provision to the chief executive or to an officer or 7
employee of the department. 8
`(2) In this section-- 9
prescribed provision means a provision of the Land Act 1994 10
that, under any of the following, applies to a lease-- 11
(a) section 133, 134, 153 or 154;8 12
(b) the Housing (Freeholding of Land) Act 1957, section 13
10J or 11.9'. 14
Part 3 Amendment of Housing 15
(Freeholding Of Land) Act 1957 16
Clause 9 Act amended in pt 3 and schedule 17
This part and the schedule amend the Housing (Freeholding of 18
Land) Act 1957. 19
Clause 10 Insertion of new s 2 20
Part 1-- 21
insert-- 22
8 Section 133 (Freeholding lease under the repealed Act, s 24), 134 (Other lease under
the repealed Act, s 24), 153 (Lease under s 113) or 154 (Lease under the repealed
Act, s 24A)
9 Housing (Freeholding of Land) Act 1957, section 10J (Application of Land Act
1994 to freeholding leases) or 11 (Continued application of previous pt 2, div 1 for
freeholding leases)
s 11 10 s 14
Housing Legislation Amendment Bill 2005
`2 Dictionary 1
`The dictionary in schedule 2 defines particular words used in 2
this Act.'. 3
Clause 11 Omission of pt 2, hdg (Provision for the freeholding of 4
certain leaseholds held under the Housing Act 2003) 5
Part 2, heading-- 6
omit. 7
Clause 12 Amendment of s 3 (Interpretation) 8
(1) Section 3, heading-- 9
omit, insert-- 10
`3 Act to be read with Housing Act 2003'. 11
(2) Section 3, `This part'-- 12
omit, insert-- 13
`This Act'. 14
Clause 13 Omission of pt 2, div 1 (Homes and home sites) and pt 2, 15
div 2, hdg (Industrial, trading and business sites) 16
Part 2, division 1 and part 2, division 2, heading-- 17
omit. 18
Clause 14 Insertion of new pt 2 and pt 3, hdg 19
After section 3-- 20
insert-- 21
`Part 2 Homes and home sites 22
`Division 1 Preliminary 23
`3A Declared percentage 24
`(1) The chief executive must declare, by publishing a notice in a 25
newspaper circulating throughout the State, the percentage 26
s 14 11 s 14
Housing Legislation Amendment Bill 2005
(the declared percentage) of the unimproved value amount of 1
a residential lease that must be used-- 2
(a) to work out the purchase price for converting a 3
residential lease to freehold land under division 2, 4
subdivision 1;10 or 5
(b) to work out the conversion cost for an unconverted lease 6
under division 3.11 7
`(2) The declared percentage-- 8
(a) must not be more than 100%; and 9
(b) must be worked out in accordance with the requirements 10
for working out the declared percentage prescribed 11
under a regulation. 12
`Division 2 Voluntary conversion of residential 13
leases to freehold land 14
`Subdivision 1 Residential leases other than 15
conversion in progress leases 16
`3B Application of sdiv 1 17
`Subject to subdivision 2, this subdivision does not apply to a 18
conversion in progress lease. 19
`3C Lessee's application to convert residential lease 20
`The lessee of a residential lease may, at any time, make a 21
written application (a conversion application) to the chief 22
executive to convert the lease to freehold land. 23
`4 Chief executive's offer to convert 24
`(1) If the chief executive receives a conversion application, the 25
chief executive must, as soon as practicable-- 26
10 See section 4A (Purchase price).
11 See section 6 (Definitions for div 3), definition conversion cost.
s 14 12 s 14
Housing Legislation Amendment Bill 2005
(a) work out the purchase price for converting the 1
residential lease to freehold land; and 2
(b) give the lessee a written notice (an offer to convert) 3
stating each of the following-- 4
(i) the purchase price; 5
(ii) the period (the availability period) during which 6
the lessee may accept the offer to convert; 7
(iii) the day (the effective day) the lessee's requirement 8
to comply with the lease ends if the offer is 9
accepted during the availability period; 10
(iv) if the offer is subject to conditions under 11
subsection (3)--the conditions. 12
`(2) The offer to convert may state more than 1 purchase price for 13
different effective days. 14
`(3) The chief executive may make an offer to convert subject to 15
any relevant condition stated in the offer, including, for 16
example, the following conditions-- 17
(a) that fees for converting the lease to freehold land, 18
including, for example, fees prescribed under the Land 19
Act 1994 or the Land Title Act 1994, be paid by the 20
lessee; 21
(b) that any costs reasonably incurred by the chief executive 22
in converting the lease to freehold land be paid by the 23
lessee. 24
`(4) The chief executive may also give the lessee of a residential 25
lease an offer to convert on the chief executive's own initiative 26
if the lessee has not made a conversion application. 27
`4A Purchase price 28
`(1) The purchase price for converting a residential lease to 29
freehold land under this subdivision is the amount equal to the 30
difference between-- 31
(a) the declared percentage of the unimproved value 32
amount of the lease; and 33
s 14 13 s 14
Housing Legislation Amendment Bill 2005
(b) the amount of any concession prescribed under a 1
regulation that applies for the conversion. 2
`(2) However, the chief executive may adjust the purchase price to 3
account for arrears of rent, or credits for rent, payable by or to 4
the lessee under the lease. 5
`(3) A regulation made under subsection (1)(b) may prescribe a 6
concession that applies in different amounts for converting 7
different residential leases, or different types of residential 8
leases, to freehold land. 9
10
Example--
11
A concession might apply in different amounts depending on how long a
12
lessee has held a residential lease.
`4B Acceptance of offer to convert 13
`(1) The lessee of a residential lease may accept an offer to convert 14
during the availability period for the offer. 15
`(2) The lessee must accept the offer to convert by-- 16
(a) paying the purchase price to the chief executive; and 17
(b) giving the chief executive all documents required to 18
surrender the lease; and 19
(c) complying with the conditions stated in the offer. 20
`(3) If the lessee does not accept the offer to convert within the 21
availability period-- 22
(a) the offer lapses at the end of the period; and 23
(b) subject to division 3, a subsequent conversion 24
application or offer to convert may be made in relation 25
to the lease. 26
`4C How conversion takes effect 27
`(1) If the lessee of a residential lease accepts an offer to convert-- 28
(a) on the relevant effective day, the land is taken to be 29
unallocated State land; and 30
(b) the Governor in Council must issue a deed of grant to 31
the lessee for the land contained in the lease. 32
s 14 14 s 14
Housing Legislation Amendment Bill 2005
`(2) The deed of grant issued under subsection (1)(b) is issued 1
subject to all of the interests to which the lease was subject 2
immediately before its surrender and in the same priorities. 3
`(3) In this section-- 4
relevant effective day means-- 5
(a) if the offer to convert stated more than 1 purchase price 6
for different effective days--the effective day to which 7
the purchase price paid by the lessee applies; or 8
(b) otherwise--the effective day stated in the offer. 9
`Subdivision 2 Conversion in progress leases 10
`5 Application of sdiv 2 11
`This subdivision applies for a conversion in progress lease. 12
`5A Purchase price 13
`(1) This section applies if the lessee of the lease was not given 14
notice of the purchasing price for the land contained in the 15
lease under previous section 5(4) before 1 July 2006. 16
`(2) The purchase price for converting the lease to freehold land 17
under this subdivision must be worked out by the chief 18
executive under previous sections 5(1) and (1A) and 5A.12 19
`(3) For subsection (2)-- 20
(a) previous sections 5(1), (1A) and (5) and 5A continue to 21
apply, with any necessary changes, as if they had not 22
been repealed; and 23
(b) a reference in previous section 5A to the notice given to 24
the lessee under previous section 5(4) is taken to be a 25
reference to the offer to convert given to the lessee under 26
this section. 27
12 Previous sections 5 (Purchasing price) and 5A (Notification of rental credit)
s 14 15 s 14
Housing Legislation Amendment Bill 2005
`(4) As soon as practicable after the purchase price is worked out, 1
the chief executive must give the lessee an offer to convert 2
under section 4. 3
`(5) The availability period stated in the offer to convert must be 3 4
months from the day the offer is given to the lessee. 5
`5B Acceptance and payment of purchase price 6
`(1) The lessee of the lease may accept the purchase price stated in 7
the relevant price notice during the availability period by 8
giving written notice (the acceptance notice) to the chief 9
executive of the lessee's acceptance. 10
`(2) Immediately after the chief executive receives the acceptance 11
notice, the chief executive must give the lessee a written 12
acknowledgement stating the day the chief executive received 13
the notice. 14
`(3) If the lessee accepts the purchase price during the availability 15
period, the lessee must, within 30 days after the chief 16
executive receives the lessee's acceptance notice-- 17
(a) pay the purchase price to the chief executive; and 18
(b) give the chief executive all documents required to 19
surrender the lease; and 20
(c) comply with the conditions stated in the relevant price 21
notice. 22
`(4) If the lessee complies with subsection (3), section 4C applies 23
in relation to the lease as if the lessee had accepted an offer to 24
convert under subdivision 1. 25
`(5) For subsection (4), if the lessee is an existing notice lessee, a 26
reference in section 4C to the relevant effective day is taken to 27
be a reference to the first day of the first month starting after 28
the 30 day period ends. 29
30
Example--
31
If the 30 day period ended on 5 March, the relevant effective day would
32
be 1 April.
`(6) If the lessee does not accept the purchase price during the 33
availability period, the lease-- 34
(a) is no longer a conversion in progress lease; and 35
s 14 16 s 14
Housing Legislation Amendment Bill 2005
(b) subject to division 3, may be converted to freehold land 1
under subdivision 1. 2
`(7) If the lessee accepts the purchase price during the availability 3
period but does not comply with subsection (3)-- 4
(a) the purchase price lapses at the end of the 30 day period; 5
and 6
(b) the lease-- 7
(i) is no longer a conversion in progress lease; and 8
(ii) subject to division 3, may be converted to freehold 9
land under subdivision 1. 10
`(8) In this section-- 11
availability period means-- 12
(a) if the lessee is an existing notice lessee--3 months after 13
the relevant price notice was given to the lessee; or 14
(b) otherwise--the availability period stated in the offer to 15
convert given to the lessee under section 5A. 16
existing notice lessee means a lessee who was given notice of 17
the purchasing price for the land contained in the lease under 18
previous section 5(4). 19
relevant price notice means-- 20
(a) if the lessee is an existing notice lessee--the notice 21
given to the lessee under previous section 5(4); or 22
(b) if the lessee was given an offer to convert under section 23
5A--the offer. 24
s 14 17 s 14
Housing Legislation Amendment Bill 2005
`Division 3 Automatic conversion of residential 1
leases to freehold land 2
`Subdivision 1 Preliminary 3
`5C Application of div 3 4
`(1) This division does not apply to a residential lease until a day 5
(the application day) prescribed under a regulation. 6
`(2) The application day must not be earlier than 1 July 2009. 7
`6 Definitions for div 3 8
`In this division-- 9
beneficiary, in relation to a deceased lessee of an unconverted 10
lease, means a person beneficially entitled to the lessee's 11
ownership of the unconverted lease. 12
conversion cost, for an unconverted lease, means the total of 13
the following amounts-- 14
(a) the amount equivalent to the declared percentage of the 15
unimproved value amount of the lease; 16
(b) any fees prescribed, at the time the lease is cancelled 17
under this division, under the Land Act 1994 or the Land 18
Title Act 1994 for the issue of a deed of grant for the 19
land contained in the lease; 20
(c) the costs reasonably incurred by the chief executive in 21
converting the lease to freehold land. 22
register a document, an interest, land or something else, 23
means to record the particulars of the thing in the appropriate 24
register under the Land Act 1994 or the Land Title Act 1994. 25
registered owner, of land in a deed of grant issued under this 26
division, means the person recorded in the freehold land 27
register as the registered owner of the land. 28
unconverted lease means a residential lease in force 29
immediately before the application day. 30
s 14 18 s 14
Housing Legislation Amendment Bill 2005
`6A Meaning of prescribed change of ownership 1
`A prescribed change of ownership of an unconverted lease is 2
a change in the lessee's ownership of the lease registered on or 3
after the application day, other than any of the following-- 4
(a) for an unconverted lease held by joint tenants, if 1 or 5
more of the joint tenants die--the recording of the 6
surviving joint tenant or tenants as the lessee for the 7
lease; 8
(b) for an unconverted lease held by a lessee who dies--a 9
transmission of the lease to the lessee's personal 10
representative; 11
(c) for an unconverted lease held by a person who becomes 12
an insolvent under administration within the meaning of 13
the Corporations Act, section 9--a transmission of the 14
lease-- 15
(i) to the person's trustee; or 16
(ii) if the person ceases to be an insolvent under 17
administration--from the person's trustee to the 18
person; 19
(d) another change in the lessee's ownership of a type 20
prescribed under a regulation. 21
`Subdivision 2 Process for automatic conversion of 22
residential leases to freehold land 23
`6B Cancellation of lease on registration of transfer 24
`(1) This section applies if a prescribed change of ownership of an 25
unconverted lease is registered. 26
`(2) On registration of the change of ownership (the converting 27
change of ownership), the lease is cancelled. 28
`(3) The Governor in Council must issue a deed of grant to the 29
lessee for the land contained in the lease. 30
`(4) The deed of grant is issued subject to all the following 31
interests-- 32
s 14 19 s 14
Housing Legislation Amendment Bill 2005
(a) if section 7(2) applies to the deed--the chief executive's 1
charge; 2
(b) all of the interests to which the lease was subject. 3
`(5) The order of priority of the interests is-- 4
(a) firstly, the chief executive's charge; and 5
(b) secondly, the interests mentioned in subsection (4)(b) in 6
the order in which they would have had priority had the 7
lease not been cancelled. 8
`(6) If there is an unregistered document in relation to the 9
cancelled lease, the document must be relodged by the 10
registrar, for the person who lodged the document, against the 11
deed of grant. 12
`(7) As soon as practicable after the lease is cancelled, the registrar 13
must-- 14
(a) record the cancellation; and 15
(b) advise the chief executive of the cancellation. 16
`(8) No fee is payable for recording the cancellation of the lease. 17
`(9) In this section-- 18
unregistered document means a document that-- 19
(a) has been lodged under the Land Act 1994 but is not 20
registered; and 21
(b) has not been rejected. 22
`6C Conversion cost may be paid before issue of deed 23
of grant 24
`The lessee of an unconverted lease may pay the conversion 25
cost for the lease to the chief executive before a deed of grant 26
is issued under section 6B(3) for the land contained in the 27
lease. 28
`7 Creation of chief executive's charge 29
`(1) This section applies if the conversion cost for an unconverted 30
lease is not paid to the chief executive before a deed of grant is 31
issued under section 6B(3) for the land contained in the lease. 32
s 14 20 s 14
Housing Legislation Amendment Bill 2005
`(2) The deed of grant is subject to a charge (the chief executive's 1
charge) in favour of the chief executive securing payment of 2
the conversion cost. 3
`(3) The charge is binding on the registered owner to whom the 4
deed of grant is issued and the registered owner's successors 5
in title. 6
`(4) The chief executive must, when the deed of grant is lodged 7
with the registrar of titles, give written notice to the registrar 8
stating-- 9
(a) the conversion cost for the lease; and 10
(b) the last day of the payment period for the deed of grant. 11
`(5) The registrar of titles must-- 12
(a) record the chief executive's charge in the freehold land 13
register; and 14
(b) while the charge is recorded in the freehold land 15
register, keep a record of the information given to the 16
registrar under subsection (4). 17
`(6) No fee is payable for recording the chief executive's charge in 18
the freehold land register. 19
`(7) For the Local Government Act 1993, section 1057,13 the chief 20
executive's charge is an encumbrance conferring rights on the 21
State. 22
`7A Requirement to pay conversion cost 23
`(1) If a deed of grant is issued subject to the chief executive's 24
charge, the registered owner of the land in the deed of grant 25
must pay the conversion cost for the unconverted lease to the 26
chief executive within the period stated in subsection (2). 27
`(2) The period (the payment period) is-- 28
(a) if the lessee of the unconverted lease died and the 29
converting change of ownership was a transmission or 30
transfer to a beneficiary in relation to the deceased 31
lessee--the period provided for under section 7B; or 32
13 Local Government Act 1993, section 1057 (Priority of State debts preserved)
s 14 21 s 14
Housing Legislation Amendment Bill 2005
(b) otherwise--2 years from the day the converting change 1
of ownership is registered. 2
`7B Payment period--deceased lessee 3
`(1) For section 7A(2)(a), the payment period is 5 years from the 4
day of the lessee's death. 5
`(2) However, if the beneficiary to whom the unconverted lease 6
was transferred transfers the land in the deed of grant to a 7
non-beneficiary during the 5 year period, the payment period 8
is the earliest of the following periods to end-- 9
(a) 5 years from the day of the lessee's death; 10
(b) 2 years from the day the transfer from the beneficiary to 11
the non-beneficiary is registered. 12
`(3) In this section-- 13
non-beneficiary means a person who is not a beneficiary in 14
relation to the deceased lessee. 15
`7C Enforcement of chief executive's charge--notice of 16
intention to sell land 17
`(1) This section applies if-- 18
(a) a deed of grant is issued subject to the chief executive's 19
charge; and 20
(b) the registered owner of the land in the deed of grant does 21
not pay the total amount of the conversion cost to the 22
chief executive during the payment period; and 23
(c) the chief executive decides to sell the land. 24
`(2) The chief executive must give written notice (a notice of 25
intention to sell) stating the matters mentioned in subsection 26
(3) to-- 27
(a) the registered owner of the land; and 28
(b) each mortgagee of the land. 29
`(3) The matters are each of the following-- 30
(a) the day the payment period ended; 31
s 14 22 s 14
Housing Legislation Amendment Bill 2005
(b) the amount of the unpaid conversion cost; 1
(c) that the chief executive may sell the land if the 2
registered owner does not pay to the chief executive 3
within a stated period-- 4
(i) the amount of the unpaid conversion cost; and 5
(ii) if the chief executive requires interest on the 6
unpaid conversion cost to be paid by the registered 7
owner--interest on the unpaid conversion cost. 8
`(4) The total amount payable by the registered owner under 9
subsection (3)(c) is the demand amount. 10
`(5) The period stated in the notice under subsection (3)(c) must be 11
at least 14 days after the notice is given to the registered 12
owner. 13
`(6) If the notice requires the registered owner to pay interest 14
under subsection (3)(c)(ii), the interest is payable-- 15
(a) at the standard variable interest rate that applies from 16
time to time under the Housing Act 2003, section 92,14 17
for owner-occupied home loans or, if more than 1 18
standard variable interest rate applies, at the lowest 19
applicable rate; and 20
(b) for the period starting on the day after the payment 21
period ends and ending on the day the amount of the 22
unpaid conversion cost is paid in full. 23
`(7) If the registered owner does not pay the demand amount 24
within the period stated in the notice, the chief executive 25
may-- 26
(a) sell the land; or 27
(b) if a mortgagee agrees to sell the land--allow the 28
mortgagee to sell the land. 29
`(8) If the chief executive allows a mortgagee to sell the land under 30
subsection (7)(b), the lessee is taken to be in default under the 31
mortgage. 32
14 Housing Act 2003, section 92 (Standard interest rates)
s 14 23 s 14
Housing Legislation Amendment Bill 2005
`8 Release of chief executive's charge on payment of 1
conversion cost etc. 2
`(1) This section applies if-- 3
(a) the chief executive receives payment of-- 4
(i) the conversion cost during the payment period; or 5
(ii) the demand amount during the period stated in a 6
notice of intention to sell; or 7
(b) the chief executive agrees to accept, and receives 8
payment of, a lesser amount in payment of the chief 9
executive's charge. 10
`(2) The land in the deed of grant is released from the chief 11
executive's charge. 12
`(3) The chief executive must, as soon as practicable, ask the 13
registrar of titles to record the release of the charge in the 14
freehold land register. 15
`(4) The registrar of titles must, on the chief executive's request, 16
record the release of the charge in the freehold land register. 17
`(5) No fee is payable for recording the release of the chief 18
executive's charge under this section. 19
`8A Sale of land by chief executive 20
`(1) If the chief executive may sell the land in a deed of grant 21
under section 7C(7)(a), the land may be sold by public auction 22
or private contract. 23
`(2) The chief executive must apply the proceeds of sale as 24
follows-- 25
(a) firstly, in payment of all costs, charges and expenses 26
properly incurred by the chief executive in the sale or a 27
previous attempted sale of the land; 28
(b) secondly, in payment of the demand amount to the chief 29
executive; 30
(c) thirdly, in payment of any amount owing to a mortgagee 31
or, if there is more than 1 mortgagee, according to their 32
priorities; 33
s 14 24 s 14
Housing Legislation Amendment Bill 2005
(d) lastly, in payment to the previous registered owner of the 1
land. 2
`(3) On the sale of the land, the chief executive must give the 3
registrar of titles a completed instrument of transfer, in the 4
approved form under the Land Title Act 1994, in relation to 5
the sale. 6
`(4) On receiving the instrument of transfer, the registrar of titles 7
must register the purchaser stated in the instrument for the 8
interest held in the land by the previous registered owner, free 9
of all encumbrances. 10
`(5) The registrar of titles must comply with subsection (4) even if 11
an instrument of title relating to the land is not produced. 12
`(6) Subsection (4) applies subject to section 8B. 13
`(7) If the demand amount has not been paid in full after the 14
proceeds of sale are applied, the unpaid part of the amount 15
may be recovered from the previous registered owner of the 16
land as a debt owing to the State. 17
`(8) The Property Law Act 1974 does not apply to the exercise of 18
the chief executive's powers under this section. 19
`(9) In this section-- 20
encumbrance-- 21
(a) includes any of the following affecting land-- 22
(i) a mortgage, lien or charge; 23
(ii) a caveat; 24
(iii) an agreement; 25
(iv) a judgment, writ or process; 26
(v) an interest adverse to the interest of the land's 27
owner; but 28
(b) does not include an easement. 29
previous registered owner, of land sold under this section, 30
means the person who was the registered owner of the land 31
immediately before its sale. 32
s 14 25 s 14
Housing Legislation Amendment Bill 2005
`8B Priority of local government charge preserved 1
`(1) This section applies if-- 2
(a) the chief executive intends to sell land under section 8A; 3
and 4
(b) the land is subject to a charge for an overdue rate under 5
the Local Government Act 1993, section 1037A.15 6
`(2) The chief executive must, before selling the land, give written 7
notice to the local government to which the rate is payable 8
stating the chief executive's intention to sell the land. 9
`(3) The chief executive may sell the land only-- 10
(a) subject to the charge; or 11
(b) free of the charge to the extent, and subject to any 12
conditions, agreed by the local government to which the 13
rate is payable. 14
`9 Chief executive's charge not affected by mortgagee 15
sale 16
`(1) This section applies if-- 17
(a) a deed of grant is issued subject to the chief executive's 18
charge; and 19
(b) a mortgagee exercising the power of sale under the Land 20
Title Act 1994 sells the land in the deed of grant before 21
the chief executive's charge is released under this 22
division. 23
`(2) The chief executive's charge is not released by the sale and the 24
land is transferred to the purchaser subject to the charge. 25
`(3) This section applies despite the Property Law Act 1974, 26
section 86.16 27
15 Local Government Act 1993, section 1037A (Registering charge over land)
16 Property Law Act 1974, section 86 (Effect of conveyance on sale)
s 14 26 s 14
Housing Legislation Amendment Bill 2005
`Subdivision 3 Miscellaneous provisions 1
`9A Condition of unconverted lease 2
`On the application day, an unconverted lease is subject to the 3
condition that if a prescribed change of ownership for the 4
lease is registered, the lease is cancelled under this division. 5
`9B Notification about application of div 3 to 6
unconverted leases to be kept with register 7
`(1) On the application day, the chief executive must notify the 8
chief executive (land) that, from the application day, this 9
division applies to an unconverted lease. 10
`(2) The chief executive (land) must, on receiving a notification 11
under subsection (1), enter the notification, in relation to each 12
unconverted lease, in the file attached to the appropriate 13
register kept under the Land Act 1994. 14
`(3) The notification in relation to an unconverted lease must not 15
be removed from the file until the lease is forfeited or 16
surrendered, or cancelled under this division. 17
`(4) In this section-- 18
chief executive (land) means the chief executive of the 19
department in which the Land Act 1994 is administered. 20
`10 Disclosure requirement--contract for sale of 21
unconverted lease 22
`(1) This section applies to a contract for the sale of an 23
unconverted lease entered into on or after the application day. 24
`(2) The contract must include a clause stating the following 25
matters-- 26
(a) under this Act, the lease will be cancelled on registration 27
of the transfer and a deed of grant for the land contained 28
in the lease will be issued; 29
(b) unless the conversion cost is paid to the chief executive 30
before the transfer is registered, the deed of grant will be 31
s 15 27 s 15
Housing Legislation Amendment Bill 2005
subject to a charge in favour of the chief executive 1
securing payment of the conversion cost; 2
(c) if the conversion cost is not paid to the chief executive 3
during the payment period, the chief executive may sell 4
the land. 5
`(3) If the contract does not comply with subsection (2), the buyer 6
may cancel the contract by giving written notice to the seller. 7
`(4) The notice must be given to the seller before settlement is 8
completed under the contract. 9
`(5) If the buyer gives a notice under subsection (3)-- 10
(a) the contract, and any related contract, ends; and 11
(b) the seller, or the seller's agent, must immediately return 12
to the buyer any consideration paid under the contract. 13
`(6) In this section-- 14
related contract includes-- 15
(a) a contract about the provision of finance to purchase the 16
unconverted lease; or 17
(b) a contract of insurance relating to premises on the land 18
contained in the unconverted lease. 19
`10A No compensation 20
`Compensation is not payable for any action taken by the 21
chief executive or the registrar of titles under this division. 22
`Part 3 Industrial, trading and 23
business sites'. 24
Clause 15 Insertion of new pt 4 25
After section 10J-- 26
insert-- 27
s 16 28 s 16
Housing Legislation Amendment Bill 2005
`Part 4 Transitional provision for 1
Housing Legislation 2
Amendment Act 2005 3
`11 Continued application of previous pt 2, div 1 for 4
residential freeholding leases 5
`(1) Previous part 2, division 1 continues to apply, as if it had not 6
been repealed, for the conversion of a residential freeholding 7
lease to freehold land. 8
`(2) In this section-- 9
residential freeholding lease means a lease that-- 10
(a) was in force immediately before 1 July 2006; and 11
(b) was deemed to be a freeholding lease under previous 12
part 2, division 1.17'. 13
Clause 16 Insertion of new sch 2 14
After schedule 1-- 15
insert-- 16
`Schedule 2 Dictionary 17
section 2 18
application day see section 5C(1). 19
availability period see section 4(1)(b)(ii). 20
beneficiary, for part 2, division 3, see section 6. 21
chief executive's charge see section 7(2). 22
conversion application see section 3C. 23
conversion cost, for part 2, division 3, see section 6. 24
17 Previous part 2 (Provision for the freeholding of certain leaseholds held under the
Housing Act 2003), division 1 (Homes and home sites)
s 16 29 s 16
Housing Legislation Amendment Bill 2005
conversion in progress lease means a residential lease in 1
relation to which the lessee applied before 1 July 2006 under 2
previous section 418 for the lease to be deemed a freeholding 3
lease, if-- 4
(a) the lessee was not given notice of the purchasing price 5
for the land in the lease under previous section 5(4) 6
before 1 July 2006; or 7
(b) each of the following applies-- 8
(i) before 1 July 2006, the lessee was given notice of 9
the purchasing price for the land in the lease under 10
previous section 5(4); 11
(ii) on 30 June 2006, the lessee had not yet elected to 12
proceed with the application under previous 13
section 6;19 14
(iii) the application did not lapse before 1 July 2006. 15
converting change of ownership see section 6B(2). 16
declared percentage see section 3A(1). 17
deed of grant means a document evidencing the grant of land 18
in fee simple under the Land Act 1994, including an 19
indefeasible title under the Land Title Act 1994. 20
demand amount see section 7C(4). 21
effective day see section 4(1)(b)(iii). 22
freeholding lease, for part 3, see section 10B(1A). 23
notice of intention to sell see section 7C(2). 24
offer to convert see section 4(1)(b). 25
payment period see section 7A(2). 26
prescribed change of ownership see section 6A. 27
previous, for a provision of this Act, means the provision as in 28
force before 1 July 2006. 29
18 Previous section 4 (Conversion of certain tenures from perpetual leases to leases for
term of years with freeholding covenant)
19 Previous section 6 (Lessee to elect whether to proceed with application)
s 16 30 s 16
Housing Legislation Amendment Bill 2005
purchase price, for converting a residential lease to freehold 1
land under part 2, division 2, means-- 2
(a) for a residential lease other than a conversion in 3
progress lease--the purchase price worked out by the 4
chief executive under section 4A; or 5
(b) for a conversion in progress lease-- 6
(i) if section 5A(2) applies in relation to the 7
lease--the purchase price worked out by the chief 8
executive under section 5A; or 9
(ii) otherwise--the purchasing price for the land 10
contained in the lease stated in a notice given to the 11
lessee before 1 July 2006 under previous section 12
5(4). 13
register, for part 2, division 3, see section 6. 14
registered owner, for part 2, division 3, see section 6. 15
registrar of titles means the registrar of titles under the Land 16
Title Act 1994. 17
residential lease means a perpetual lease for residential 18
purposes-- 19
(a) granted and held, or taken to be held, under the Housing 20
Act 2003, section 113 or the repealed State Housing Act 21
1945, section 24A;20 and 22
(b) that is in force immediately before 1 July 2006. 23
unconverted lease, for part 2, division 3, see section 6. 24
unimproved value amount, of a residential lease, means the 25
amount of the valuation of the unimproved value of the land 26
contained in the lease in force under the Valuation of Land Act 27
1944-- 28
(a) for an offer to convert given to the lessee of the lease 29
under part 2, division 2, subdivision 1--when the chief 30
executive decides the purchase price under the 31
subdivision; or 32
20 Housing Act 2003, section 113 (Chief executive's power to sell houses to eligible
persons) or the repealed State Housing Act 1945, section 24A (Power of commission
to provide home sites)
s 16 31 s 16
Housing Legislation Amendment Bill 2005
(b) for a lease cancelled under part 2, division 1
3--immediately before the lease is cancelled.'. 2
32
Housing Legislation Amendment Bill 2005
Schedule Consequential amendments 1
section 9 2
Housing (Freeholding of Land) Act 1957 3
1 Sections 10B, 10C(1), and 10E to 10I, `division'-- 4
omit, insert-- 5
`part'. 6
2 Section 10B(2), `the schedule'-- 7
omit, insert-- 8
`schedule 1'. 9
3 Schedule, heading-- 10
omit, insert-- 11
`Schedule 1 Lands to which part 3 does not 12
apply'. 13
© State of Queensland 2005
AMENDMENTS TO BILL
1
Housing Legislation Amendment Bill 2005
Housing Legislation Amendment Bill 2005
Amendments agreed to during Consideration
1 Clause 14--
At page 17, lines 5 to 7--
omit, insert--
` `This division does not apply to a residential lease until
1 July 2009 (the application day).'.
2 Clause 16--
At page 28, line 19, `5C(1)'--
omit, insert--
`5C'.
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