49Binding effect

49 Binding effect

49 Binding effect

(1) A development contract comes into effect when it is registered.

(2) A development contract registered with a scheme plan has effect as if it included an agreement under seal with the covenants set out in subsections (3) and (4)—

(3) The developer covenants that the developer must—

(a) carry out warranted development, and

(b) carry out development in accordance with—

(i) the covenants set out and implied in the contract, and

(ii) any relevant planning approval.

(4) The other parties covenant that the developer will be permitted to carry out, in accordance with the development contract and any relevant planning approval—

(a) warranted development, and

(b) authorised proposals.

(5) The covenants are given jointly and severally between the developer and each of the other parties.

(6) Any attempt to exclude, modify or restrict the operation of the covenants is void.

(7) The covenants do not affect any right or remedy a person has otherwise than under the covenants.

(8) The covenants do not merge in a transfer.

(9) Part 4 of the Community Land Management Act 2021 does not apply to matters arising under the covenants.

(10) In this section—

lot owner, for a scheme, means a person, other than a developer, who is the owner of a development lot or neighbourhood lot within the scheme.

other parties, for a scheme, means—

(a) the association and any subsidiary bodies, and

(b) the lot owners, and

(c) each registered mortgagee, chargee, covenant chargee or lessee of a lot.