Pre-grant financial compliance. To obtain title under the Act the Company must ensure payment of the unimproved value of the land as fixed by an appraiser appointed by the Board, and payment of survey, Crown grant and assurance fees payable in respect of registration and grant (s 3). Practically that requires early engagement with the Board about the valuation process so the Company can budget for the unimproved value as determined by the Board-appointed appraiser and ensure funds are available to pay survey and registration fees promptly.
Engage with the Board about permitted uses. The Act limits permitted use to chalet accommodation and appurtenances unless the Board approves other associated purposes in writing (s 3(a)). To avoid risk of a Board certificate for unauthorised use, the Company should seek written approvals from the Board for any activity beyond guest accommodation before undertaking those activities. Any written Board approval should be preserved in records as evidence of authorized use.
Maintain documentary proof of effective use. Because revocation may be certified when the premises have not been "effectively used" for authorised purposes for a period of not less than two years during the preceding three years (s 3(b)(ii)), the Company should keep contemporaneous turnover records, occupancy logs, bookings, maintenance logs, advertising and other operational records that demonstrate effective use of the premises. Those records provide documentary evidence if the Board ever investigates or needs to be satisfied about the use threshold.
Avoid unauthorised or "improper" purposes. The Act authorises revocation where the premises have been used for purposes "not authorized by or under this Act or for any improper purpose" (s 3(b)(i)). The Act does not define "improper purpose". The safest compliance strategy is to limit activity to the expressly permitted use and to obtain prior written Board approval for any departure. Keep written approvals accessible and document compliance with any additional covenants the Governor in Council may impose.
Prepare for survey and title formalities. The Company must pay survey and registration fees as a precondition to grant (s 3). Engage a surveyor and liaise with registry officials early to ensure survey work, title documentation and assurance requirements are completed in a timely manner following payment of fees. Ensure that the Crown grant documentation is kept safe and that copies or duplicates are identifiable, because s 4(d) requires production if revocation occurs.
Consider assignment implications and document transfers. The Act’s definition of Company includes assigns (s 2). If the Company intends to transfer the grant or its interest, structure the transaction to ensure the assignor and assignee understand that covenants and potential revocation rights remain attached to the land. Obtain written confirmation of any necessary consents or approvals from the Board or the Governor in Council if advisable, because the Act itself is silent about assignment formalities.
Plan removal logistics in the event of revocation. Under s 4(b) the Company will have only such period as the Board specifies in the Gazette notice to remove buildings or structures and must do so on terms the Board directs. To reduce the risk of losing improvements, the Company should maintain plans and logistical arrangements enabling removal within a short period, and keep records evidencing ownership of removable improvements. Obtain quotes and have contractors on standby if removal is plausible given operational risk.
Manage encumbrances and third-party interests proactively. Because s 4(c) discharges encumbrances on revocation, parties with security interests should consider the statutory risk. If lenders, lessees or easement-holders have interests in the premises, ensure loan and security documents address the reality that in the event of revocation their interests may be extinguished as a matter of statute. Lenders should seek protective clauses, and the Company should inform prospective financiers of the statutory regime when negotiating security.
Record-keeping and audit trail. Robust record-keeping of Board approvals, operational use, payments of unimproved value and fees, survey and registration documentation, and insurance and maintenance records will support the Company in defending against a Board certificate for non-use or unauthorised use. Given the Act’s lack of procedural safeguards, contemporaneous documentary evidence will be the primary factual source if disputes arise.
No statutory compensation; adjust risk allocation in contracts. Section 5 bars compensation by the Crown for acts under the Act. Parties entering contracts relating to the premises should allocate the risk of statutory revocation and extinguishment of encumbrances contractually, for example by shifting the risk of revocation costs to a particular party or requiring representations and warranties about compliance.
Engage legal counsel for administrative review options. The Act does not set internal appeal mechanisms for Board certifications or Governor in Council decisions. If a Board certificate is issued, consider immediate advice on external administrative law remedies, judicial review thresholds, and injunctions under general law, noting these remedies are not provided for within the Act and will rely on general principles external to the statute.
Monitor statutory notices. Because revocation takes legal effect and triggers title reversion from the date of publication in the Government Gazette (s 4(a), s 4(c)), monitor the Gazette for any notices affecting the property. Timely knowledge of a Gazette notice will be indispensable if removal or immediate legal action is necessary.
Document custody of Crown grant originals. Keep original Crown grant documentation in a secure but accessible location. Section 4(d) obliges holders to produce Crown grant documents to the Registrar of Titles when required in the event of revocation; failure to produce originals may impede administrative rectification of title records.
In each step, map actions to the statutory provisions cited: pay unimproved value and fees and secure survey and registration (s 3); operate only within authorised uses or secure written Board approval (s 3(a)); maintain evidence of effective use to meet the two-year-in-three requirement (s 3(b)(ii)); prepare for removal under Board terms if revocation occurs (s 4(b)); and note the lack of Crown compensation for acts under the Act (s 5).