Track record

The Neighborhood Titles Act 2018 (WA) (CT Act) was assented to on 19 November 2018. The greater part of the CT Act is nonetheless not “in force” but we hope it before long will be following the commencement on 18 June 2021 of the Local community Titles Polices 2021 (WA).

The CT Act introduces a new form of land tenure to Western Australia offering for the:

  • subdivision of land as a “Community Scheme”
  • development of “Community Titles” and
  • the governance of Local community Schemes.

Tiered solution

The introduction of “Community Schemes” in Western Australia while maybe introducing some complexity really should generate distinct rewards for property developers, buyers, house owners and financiers by allowing a solitary parcel of freehold land to be subdivided up to a few times by different Community Title which is distinctive from the Strata Titles Act 1985 (WA) which only permits for 1 plan to be designed for every solitary parcel of land.

Just about every tier in a “Community Scheme” can incorporate Prevalent Residence in which some other of the Strategies in the Community Scheme have an desire:

  • “Tier 3” Schemes will have an interest in the “Tier 3”, “Tier 2” and “Tier 1” Frequent Assets
  • “Tier 2” Strategies will have an desire in the “Tier 2” and “Tier 1” Popular Residence and
  • “Tier 1” Schemes will have an curiosity in the “Tier 1” Common Residence.

On the registration of every single “Community Titles Scheme” with Landgate, a new statutory entire body recognised as a “Community Corporation” will be made which should administer the Widespread House of that “Community Titles Scheme”.

A Tier 1 Group Company contains the Proprietors of any Tier 1 Good deal that has not been re-subdivided and the Neighborhood Company of any Tier 2 Scheme.

A Tier 2 Group Company contains the Proprietors of any Tier 2 Good deal that has not been re-subdivided and the Local community Company of any Tier 3 Scheme.

A Tier 3 Group Company contains the Owners of Tier 3 Loads.

Apparently, the Tier 3 Group Company has an curiosity in the Tier 1 Popular Residence, but the Tier 1 Local community Company has no interest in the Tier 3 Popular Residence.

In the same way, the Tier 3 Community Company will be represented at the Tier 1 Community Company by its inclusion in the Tier 2 Community Corporation but the Tier 1 Group Corporation is not represented in the Tier 3 Community Corporation.

Questions raised

The over dialogue raises at the very least the adhering to issues:

  • what are the voting and illustration rights at every “Tier and
  • can you have more than one particular Tier 2 Corporation, for instance, a Household Company and a Business Company?

Dentons has a prosperity of information and encounter in relation to the growth, arranging, building, utilisation and administration of land which includes its subdivision and the creation, governance and operation of strata titles schemes and an unmatched capability to suggest about and enable by providing well timed, aim and efficient alternatives. The over two queries should be amongst a myriad of queries about the introduction of Neighborhood Titles in Western Australia.