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Reform of unit titles' termination laws
The NT Government is seeking public comment from 1 October 2014 on the consultation draft of the Termination of Units Plans and Unit Titles Schemes Act 2014.
This proposed legislation is expected to be introduced to Parliament in the October 2014 sittings. It seeks to provide greater flexibility in decision making for the owners of units (often called strata units or town houses) concerning their commonly owner property and mutual obligations and rights regarding one another. The legislation should also lead, over time, to better land use.
The proposed legislation provides new principles for the cancellation of unit title plans and schemes. These principles provide, for schemes and plans that are at least 15 years old and which contain at least 10 units, an option for cancellations to occur based around achieving a prescribed level of support. This level ranges from 80% to 95% depending on the age of the scheme or plan.
These new provisions replace the current law where the options are limited to seeking 100% agreement of all owners or a decision from the Supreme Court. Owners who object to a proposed cancellation will have the right to challenge the merits of the decision before the Northern Territory Civil and Administration Tribunal (NTCAT) with a further right of appeal to the Supreme Court on grounds of law.
Critically, the proposed law seeks to set out a clearer set of rules for the Tribunal and the Court when dealing with contested cancellations. These are designed to ensure that due regard is had to the respective advantages and disadvantages of all owners in allowing or not allowing a cancellation of schemes or plans.
Comments should be sent to:
Director, Policy Coordination
Department of the Attorney-General and Justice
GPO Box 1722,
DARWIN NT 0801
Or by email to Policy.AGD@nt.gov.au
Last updated: 18 April 2016