Community Land Management Act 2021 (New South Wales) — Zoe

New South Wales act

Community Land Management Act 2021

In ForceNSW

Jurisdiction

New South Wales

Act Number

7 of 2021

Collection

act

Plain English Summary

8/10 complexity

The Community Land Management Act 2021 sets rules for running shared-property developments called community, precinct and neighbourhood schemes (groups of homes or buildings with common areas like parks, roads or facilities that all owners share and pay for through an 'association').

It explains how owners form and run associations (like a committee that makes decisions), hold meetings and vote (using simple majority, special resolutions where no more than 25% can oppose, or unanimous votes), manage money in two funds (day-to-day admin and long-term repairs), maintain and insure property, appoint managers or agents, create by-laws (rules for using the land), and resolve disputes (including through mediation or the Tribunal). It also covers limits during the early 'initial period' after development, duties of owners and committees, and new rules for sustainability (like solar panels) or accessibility upgrades.

It affects developers (with extra restrictions early on), owners, tenants, committees, managing agents and facilities managers. It matters because it makes collective decisions fair, protects shared spaces, prevents disputes from escalating, and updates older laws to handle modern issues like environmental upgrades and better transparency.

JSON API

Deep Dive

3,855 words · generated 24/04/2026

What it does

The Community Land Management Act 2021 (the Act) is the primary statute governing the ongoing operation of community, precinct and neighbourhood schemes in New South Wales. These schemes arise under the companion Community Land Development Act 2021, which handles subdivision and creation; the Management Act then regulates day-to-day governance once the scheme is registered.

At its heart the Act establishes that an association (community, precinct or neighbourhood) is the body corporate responsible for the scheme (s 7(1)). It confers principal authority on the association for management and control of association property and administration of the scheme for the benefit of members and lot owners (s 7(2)). Specific responsibilities are allocated across finances (Part 5), records (Part 10), maintenance and repair (Part 6) and insurance (Part 9).

The Act prescribes detailed machinery for decision-making. Resolutions are classified as ordinary, special (s 5(1): not more than 25 % against, or <50 % for sustainability or accessibility infrastructure resolutions) or unanimous (s 5(2)). Voting entitlements are tied to unit entitlements (ss 5(3)–(5)), with a two-thirds reduction applied to the original owner’s lots when they exceed half the total (s 5(6)). This prevents developer dominance post-initial period.

Meetings are tightly regulated. The original owner must convene the first AGM within two months after the initial period expires (s 12(1)), with a mandatory agenda (s 13) that includes confirmation of contributions, election of the committee, insurance review, by-laws, managing-agent appointment and receipt of initial documents (s 14). Subsequent AGMs are required annually (s 16); other general meetings may be called by the committee or on a qualified request (25 % of unit entitlement) (s 17). Tribunal intervention is available where meetings are not held (s 18).

Current sections

Direct links to the current provisions in Community Land Management Act 2021.

302

Official source available

Zoe has indexed the source text for search and analysis. Use the official register for the original document and download formats.

View on official register

Sourced from legislation.nsw.gov.au, CC BY 4.0.

Who it affects

The Act casts a wide net across the lifecycle of a scheme.

Developers/original owners: Subject to strict initial-period restraints (ss 25–27), mandatory delivery of documents and maintenance schedules at the first AGM (ss 13–14), potential compensation liability for inadequate estimates (s 94), and reduced voting power once they control ≥50 % unit entitlement (s 5(6)). They must also disclose connections when seeking committee election (s 35(1)(d)).
Lot owners (community development lots, precinct development lots, neighbourhood lots): Primary members of the association. They vote in proportion to unit entitlement, pay contributions, are bound by by-laws, owe duties not to interfere with support, services or enjoyment (s 143–144), and can be levied for insurance differentials caused by their use (s 87). Owners of successive estates or co-owners have restricted voting (s 22). Unfinancial owners lose ordinary voting rights (s 22(9)).
Subsidiary bodies (precinct, neighbourhood or strata associations within a community or precinct scheme): Treated as members of the parent association, vote by unit entitlement of the former development lot, and must notify the parent of their details (s 221). They are subject to parent by-laws and can hold restricted property rights (s 134).
Association committees and officers: Elected members (ss 32–34) owe fiduciary-like duties (s 41), face disqualification rules (s 35), and may be removed by the Tribunal for breach or misconduct (s 197). Officers (chairperson, secretary, treasurer) have defined functions (ss 46–48) and cannot be paid except by resolution at AGM (s 50).
Managing agents and facilities managers: Must hold appropriate licences (s 53), face term limits, disclosure and commission rules (ss 54, 61–64, 75), and may be appointed by the Tribunal (s 196). Facilities managers have best-interest duties (s 74A) and may hold exclusive possession of lots.
Tenants: Notified tenants of neighbourhood lots may nominate a non-voting representative on the neighbourhood committee (s 36) and must receive meeting agendas (cl 10 of Sch 1). They are bound by by-laws via the lease (s 132) and cannot be charged animal bonds (s 108A).
Mortgagees and covenant chargees: Entitled to notice of certain meetings, may cast priority votes on financial, expenditure or special-resolution matters after notice (s 23, cl 23 of Sch 1), and are jointly liable for certain contributions while in possession (s 89(3)).
The Tribunal and Secretary: The Tribunal exercises broad remedial jurisdiction (Part 11); the Secretary may investigate, mediate, prosecute and issue compliance notices (ss 209, 217, Part 10A).
Public authorities: Retain entry powers (s 230) and may enforce positive covenants.

The Act therefore touches every participant from the moment of registration through to termination, with particular ongoing burdens on committees and agents.

Key duties and rights

Duties

Association: maintain and repair association property (s 109(1)), renew/replace fixtures (s 109(2)), prepare annual estimates and levy contributions (ss 83–84), insure buildings and public liability (ss 148, 152), keep accurate records and roll (ss 165–166), hold AGMs (s 16), act in members’ best interests.
Original owner: convene first AGM and deliver documents/maintenance schedule (ss 12–14), refrain from restricted acts during initial period (ss 25–27), compensate for inadequate estimates (s 94).
Committee members: honesty, care, diligence, benefit of association, compliance with Act, confidentiality, non-nuisance (s 41).
Owners/occupiers: no interference with support, services, access ways or enjoyment (ss 143–144), pay contributions, comply with by-laws, allow entry for repairs (s 119).
Managing agents: disclose commissions and connections (s 64), record functions exercised (s 59), avoid undisclosed gifts (s 61(2)), provide information on request (ss 62–66).
Facilities managers: act in association’s best interests, comply with prescribed duties (s 74A).

Rights

Members: vote according to unit entitlement (subject to original-owner reduction and priority votes), inspect records (s 172), require motions on agenda (cl 3 of Sch 1), apply to Tribunal for orders (s 187), receive financial statements and notices.
Owners: apply for Tribunal orders on contributions (s 92), invalid resolutions (ss 22–23), appointment of agent (s 196), by-law revocation (s 140).
Subsidiary bodies: exclusive-use rights over association property by by-law (s 134), representation on parent committee (s 33).
Mortgagees/covenant chargees: priority vote on financial and special-resolution matters after notice (cl 23 of Sch 1), notice of meetings where relevant.
Tenants (neighbourhood schemes): nominate representative (s 36), receive agendas, no animal-bond requirement (s 108A).
Tribunal: wide remedial powers including invalidating resolutions, appointing agents, varying contributions, ordering compensation, revoking by-laws.

All rights are exercisable only after satisfying procedural prerequisites (notice, payment of contributions, quorum).

How it interacts with other laws

The Act is designed to operate in tandem with the Community Land Development Act 2021 (which creates the schemes and registers plans, unit entitlements and development contracts). Cross-references appear throughout: e.g. service lines (s 14(1)(d) referring to s 34 of the Development Act), revised unit-entitlement schedules (s 13(2)(n)), and termination (s 206).

It aligns closely with the Strata Schemes Management Act 2015. Definitions of “special resolution” are harmonised (s 5(7)), many meeting and financial provisions mirror strata rules, and the same Tribunal jurisdiction applies. Strata corporations within a community scheme are subsidiary bodies and subject to parent by-laws (s 127(1)(b)).

The Interpretation Act 1987 supplies general definitions and affects construction (s 4(1) note). The Real Property Act 1900 governs registration of orders and changes of address (ss 205, 228). Planning and environmental laws interact via development approvals required before registration and by-laws that must not conflict with planning approvals (s 129(3)(a)).

Local Government Act 1993 supplies the definition of “relative” for connected-person rules (s 6(1)(a)) and interacts with open-access-way status (s 112). The Property and Stock Agents Act 2002 and its Regulation govern licensing and conduct of managing agents and facilities managers (ss 53, 61, 70). Workers compensation and public-liability insurance obligations cross-reference the Workplace Injury Management and Workers Compensation Act 1998 (s 152(1)(a)).

The Civil and Administrative Tribunal Act 2013 supplies the Tribunal’s general powers, costs rules and enforcement of monetary orders. The Dividing Fences Act 1991 treats associations as owners for fencing purposes (s 229). The Disability Discrimination Act 1992 (Cth) informs assistance-animal by-law rules (s 130A).

The Act prevails over inconsistent contractual provisions (s 232) but does not limit other statutory rights (s 213). Tribunal orders altering by-laws or schedules are recorded on the Register and have statutory force (ss 204–206).

Recent amendments (2022–2025) have inserted animal-keeping rules (ss 129A, 108A), spending limits (s 105A), electronic-meeting and record provisions (ss 164, 173), and the comprehensive investigation regime in Part 10A, all of which interact with the Fair Trading Act 1987 (administered by the Secretary) and the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020 (building-defect overlap).

Court challenges and controversies

Because the Act channels most disputes to the Tribunal, superior-court litigation is relatively rare but significant when it occurs.

Constitutional and jurisdictional issues: Early challenges under the predecessor 1989 Act questioned whether certain Tribunal powers involved exercise of judicial power (e.g. ordering compensation under s 94). The current Act’s drafting (civil-penalty and enforcement provisions in Part 10A) has been crafted to avoid s 76(ii) Constitution difficulties by characterising most remedies as administrative or regulatory.
Validity of by-laws: Tribunal decisions revoking “harsh, unconscionable or oppressive” by-laws under s 140 have been upheld on appeal (e.g. occupancy limits, animal prohibitions). The 2023–2025 amendments clarifying that reasonable animal-keeping rules are not harsh (s 129A(4)) were a direct legislative response to conflicting Tribunal outcomes.
Original-owner voting and initial-period restraints: Developers have contested the s 5(6) voting reduction and s 29 compensation liability. Courts have strictly enforced the statutory language, emphasising the protective purpose (see decisions under the 1989 Act that remain persuasive).
Managing-agent commission disclosure: Several Tribunal and Supreme Court cases have turned on whether commissions were disclosed “in good faith” (s 64(3)(b)). The 2024–2025 amendments tightening disclosure content and adding training-service rules were prompted by complaints that agents were structuring payments to avoid the statutory cap.
Maintenance enforcement: Prior to Part 10A the absence of a dedicated regulator led to reliance on private applications. Owners’ corporations and associations frequently argued that s 109 duties were not being enforced; the 2025 insertion of compliance-notice and undertaking regimes directly addresses this gap. Early commentary suggests potential judicial review on the reasonableness of notices, but the statutory language grants the Secretary broad discretion.

Controversies have centred on perceived imbalance: developers argue the initial-period restraints and voting reductions deter investment; owners complain of under-maintenance and opaque agent commissions; strata lawyers note ongoing divergence between community-title and strata regimes despite harmonisation rhetoric. The 2025 amendments represent a policy shift toward proactive regulatory oversight, mirroring reforms in the strata sector.

No High Court decisions have yet construed the 2021 Act, but several Court of Appeal authorities on the 1989 Act (particularly on by-law validity and Tribunal jurisdiction) continue to bind.

Gotchas

Most practitioners miss the interaction between the initial-period restrictions and development-contract carve-outs. Section 25(d) prohibits adding land “except in accordance with the development contract (if any)”. A poorly drafted contract can lock the association into expensive or undesirable expansions; once the initial period ends the power is lost. Always check the registered development contract before advising on major capital works.

The two-thirds voting reduction for the original owner (s 5(6)) is calculated ignoring fractions and applies only when the original owner’s entitlement is “not less than half”. A 49.9 % holding escapes the reduction—developers sometimes deliberately structure ownership to stay just below the threshold. Conversely, once the reduction bites it applies to every poll and special resolution until the original owner’s holding falls below 50 %.

Section 61(3)(b1) and the new training-service disclosure rules (inserted 2024–2025) are frequently overlooked. An agent who receives a “training service” valued above the prescribed threshold without general-meeting approval and the detailed motion document commits an offence. Many legacy agency agreements do not contain the required clauses; they are therefore non-compliant.

The animal-keeping amendments (ss 129A, 108A) contain an evidentiary trap. A by-law is not “harsh” if it does not unreasonably prohibit keeping; however an association that fails to decide a request within a reasonable time is taken to have given permission (s 129A(5)(b)). Committees that simply ignore requests are therefore deemed to have approved the animal, exposing the association to later nuisance claims.

Part 10A compliance notices can be issued for breaches of the s 109 maintenance duty. Because the notice can require opening-up or demolition of building work (s 177L), it overlaps with the Residential Apartment Buildings (Compliance and Enforcement Powers) Act 2020. The Act expressly prohibits use of a compliance notice where a building-work rectification order could be issued (s 177X(2)). Practitioners must carefully characterise the defect before choosing the enforcement pathway; choosing the wrong one can lead to jurisdictional challenge and cost orders.

Finally, the electronic-meeting and voting provisions (inserted 2023–2025) still require the secretary or managing agent to take “reasonable steps” to ensure all entitled persons can participate (cl 8(2) of Sch 2, cl 27(2) of Sch 1). Failure to do so can invalidate the meeting. Many smaller associations still use Zoom without closed-captioning or telephone dial-in options, exposing resolutions to challenge by owners with disabilities.

How to comply

For associations and committees

Maintain an up-to-date electronic roll and records (s 164). Review at least annually.
Schedule the first AGM (or subsequent AGMs) within statutory time limits and ensure the mandatory agenda is followed (ss 12–13).
Prepare accurate financial estimates before each AGM, taking into account the initial maintenance schedule for the first year (s 83(4)). Engage independent surveyors for multi-storey schemes (s 14(2A)).
Levy contributions strictly in accordance with unit entitlement (ss 85–86). Issue written notices containing Secretary-approved information (s 88(1A)). Apply payment plans consistently and document refusals with reasons (s 90).
Insure to the required value and review annually (ss 148–150). Disclose commissions at every AGM (s 64).
Maintain and repair association property; deferral is permitted only for pending litigation and only if safety and access are unaffected (s 109(4)). Budget realistically in the capital-works fund.
Ensure all committee members understand their s 41 duties. Disclose any pecuniary interests (cl 16 of Sch 2). Do not allow the committee to decide matters reserved for general meeting (s 40(4)).
When appointing or reappointing managing agents or facilities managers, use Secretary-approved forms, obtain at least three quotations where required (s 154), and ensure disclosure of connections (s 75). Record all delegated functions (s 59).
For sustainability or accessibility projects, obtain the required quotations, consider the statutory checklist (ss 125, 125A), and frame the resolution as a “sustainability infrastructure resolution” or “accessibility infrastructure resolution” to attract the lower 50 % opposition threshold (s 5(1)).
Respond to animal-keeping requests promptly; silence equals approval (s 129A(5)).

For owners and tenants

Pay contributions on time or negotiate a compliant 12-month payment plan before arrears trigger loss of voting rights.
Give tenancy notices and association-interest notices promptly (ss 20, 219).
Comply with by-laws; challenge only those that are harsh, unconscionable or oppressive (s 130(1), s 140).
Do not interfere with support, services or enjoyment (ss 143–144).
When selling, ensure the s 174 certificate is obtained and disclose any known defects.

For managing agents and facilities managers

Maintain separate trust accounts, provide quarterly reconciliations, and record every exercise of delegated functions (ss 59, 62–63).
Disclose every commission, training service, connection or pecuniary interest in the exact form and at the exact times required (ss 64, 75). Obtain general-meeting approval for any non-permitted benefit.
Never accept a proxy that would confer a material benefit on you (cl 24(7)–(8) of Sch 1).
For facilities managers, document how every decision advances the association’s best interests (s 74A).

For developers

Deliver complete initial documents, certified maintenance schedule and contribution estimates at the first AGM (ss 13–14).
Comply strictly with initial-period restraints or obtain Tribunal approval (ss 25–28).
Disclose all connections when standing for committee election (s 35(1)(d)).
Structure any post-initial-period works through the association rather than unilaterally.

General compliance tips

Use the Secretary’s approved forms for notices, certificates, proxy appointments and agency agreements.
Keep a central register of all disclosures, resolutions and Tribunal orders.
Before any major expenditure obtain two independent quotations (s 105A); document inability to do so and place on the next general-meeting agenda.
Record all meetings (including electronic) and circulate minutes within 14 days.
When in doubt, obtain legal advice or apply to the Tribunal for directions rather than risk a s 207 civil penalty or s 29 damages action.

Systematic use of checklists derived from the mandatory agenda items (s 13, cll 5 and 8 of Sch 1) and annual review of the maintenance schedule against actual expenditure will prevent most common breaches.