Termination of Units Plans and Unit Title Schemes Act 2014 (Northern Territory)

This Act establishes a statutory framework for ending unitised ownership arrangements in the Northern Territory, by terminating unit title schemes or cancelling units plans and dealing with the legal and practical consequences. Mechanically, it creates three statutory routes for termination: (a) unanimous resolution of the body corporate (Part 3, s 7); (b) a supermajority resolution by owners where Part 4 applies (Part 4, ss 8-14); and (c) an order of the Northern Territory Civil and Administrative Tribunal (the Tribunal) under Part 5 (ss 15-18). Section 6 makes termination under this Act exclusive except where s 72 of the Unit Title Schemes Act 2009 applies.

The Act sets out who may start the process and how. For terminations initiated by a proponent (an owner or group of owners) under Part 4, the proponent must apply to the schemes supervisor for an approval certificate with a draft notice of proposed termination and a prescribed fee (s 9(1), s 10). The schemes supervisor must review the application within the prescribed number of days and either issue an approval certificate, ask for more information, issue an explanatory notice, or reject the application (s 10(1)-(3)). After an approval certificate, the proponent requests the body corporate call a meeting to vote on the proposed resolution (s 11). If the required percentage of owners pass the resolution, certain procedural steps follow including serving the resolution on owners and mortgagees (s 12), registration of a notice of proposed termination by the Registrar‑General (s 12(9)(a)-(b)), and a 12‑month window to lodge the registration documents required under s 54G of the Land Title Act 2000 (s 19(1)).

The Act prescribes mechanisms for dealing with dissenting owners (objecting owners). Objecting owners have defined options upon a successful resolution, including withdrawing objection, selling outside the statutory forced‑sale regime, serving a notice of intention to sell under s 13, or applying to the Tribunal (s 12(1)(c)). If they elect or fail to act, the proponent can pursue compulsory acquisition of the objector’s unit by applying to the Tribunal for a sale order; valuation and procedural steps are specified (s 13(4)-(6)). The Tribunal’s power to approve termination is conditional and discretionary: it may only order termination if it is “just and equitable”, objections are unreasonable, and other prescribed factors support termination (s 17(1)-(2)). The Act also prescribes the legal effects of termination (s 20): the body corporate dissolves, former owners take shares of property in accordance with interest entitlements, liabilities vest jointly and severally in former owners, certain registered interests continue only in relation to specific land, and stamp duty is not payable because of the transfer operation (s 20(1)-(2)). The timing for the termination to take legal effect is tied to registration under the Land Title Act 2000: termination takes effect when the required documents are registered and the scheme statement or units plan is cancelled (s 19(3)).

NORTHERN TERRITORY OF AUSTRALIA TERMINATION OF UNITS PLANS AND UNIT TITLE SCHEMES ACT 2014 As in force at 1 May 2019 Table of provisions Part 1 Preliminary matters 1 Short title ......................................................................................... 1 2 Commencement .............................................................................. 1 3 Act binds Crown .............................................................................. 1 4 Interpretation ................................................................................... 1 5 Application of Criminal Code ........................................................... 6 Part 2 General rules 6 Termination of development ............................................................ 6 Part 3 Termination by unanimous resolution 7 Termination by resolution ................................................................ 6 Part 4 Termination by vote of required percentage of owners 8 Application of Part ........................................................................... 7 9 Application for approval certificate ................................................... 7 10 Approval certificate .......................................................................... 9 11 Resolution – proposed termination ................................................ 11 12 If resolution passed ....................................................................... 12 13 Sale to proponent of unit of objecting owner.................................. 15 14 Limits on vote after resolution defeated ......................................... 18 Part 5 Termination by Tribunal 15 Application of Part ......................................................................... 19 16 Who may apply to Tribunal ............................................................ 19 17 Order of Tribunal ........................................................................... 21 18 Appeal to Supreme Court .............................................................. 22 Part 6 Effect of termination 19 When termination takes effect ....................................................... 23 20 Effect of termination ....................................................................... 23

Termination of Units Plans and Unit Title Schemes Act 2014 ii Part 7 Miscellaneous provisions 21 Misleading information ................................................................... 25 22 Commencing proceedings ............................................................. 26 23 Regulations.................................................................................... 26 Part 8 Transitional matters for Termination of Units Plans and Unit Title Schemes Act 2014 24 Definitions ...................................................................................... 26 25 Application for termination made before commencement .............. 27 26 Notice of termination resolution sent before commencement ........ 27 27 Termination resolution passed before commencement ................. 27 ENDNOTES

NORTHERN TERRITORY OF AUSTRALIA

As in force at 1 May 2019

TERMINATION OF UNITS PLANS AND UNIT TITLE SCHEMES ACT 2014 An Act to provide for the termination of units plans and unit title schemes, and for related purposes Part 1 Preliminary matters 1 Short title This Act may be cited as the Termination of Units Plans and Unit Title Schemes Act 2014. 2 Commencement This Act commences on 1 January 2015. 3 Act binds Crown This Act binds the Crown in right of the Territory and, to the extent the legislative power of the Legislative Assembly permits, the Crown in all its other capacities. 4 Interpretation (1) In this Act: approval certificate means: (a) an approval certificate issued under section 10; or (b) an order made by the Tribunal on an application under section 10(5)(b) that has the same effect as an approval certificate. basic scheme, see section 63(3) of the Unit Title Schemes Act 2009. body corporate, in relation to a development: (a) if the development is a scheme – see section 5 of the Unit Title Schemes Act 2009; or

Part 1 Preliminary matters Termination of Units Plans and Unit Title Schemes Act 2014 2 (b) otherwise – means a corporation. building development, see section 4(1) of the Unit Titles Act 1975. common property, in relation to a development: (a) if the development is a scheme – see section 33(1) of the Unit Title Schemes Act 2009; or (b) otherwise – see section 4(1) of the Unit Titles Act 1975. condominium development, see section 4(1) of the Unit Titles Act 1975. corporation, see section 4(1) of the Unit Titles Act 1975. development means a scheme, unit development, building development, condominium development or estate development. development land means the units and the common property of a development. draft notice of proposed termination, see section 9(2). estate development, see section 4(1) of the Unit Titles Act 1975. higher scheme, in relation to a development, means: (a) if the development is a scheme – a higher scheme as defined in section 63(2) of the Unit Title Schemes Act 2009; or (b) otherwise – a development under which one or more building lots or estate development lots have been further subdivided into units and common property. interest entitlement, in relation to a development, means: (a) if the development is a scheme – see section 5 of the Unit Title Schemes Act 2009; or (b) otherwise – a unit entitlement as defined in section 4(1) of the Unit Titles Act 1975. notice of proposed termination, see section 10(6). objecting owner, in relation to a termination of a development mentioned in section 11(1), means an owner of a unit in the development who has not voted in favour of the resolution mentioned in that section.

Part 1 Preliminary matters Termination of Units Plans and Unit Title Schemes Act 2014 3 owner, in relation to a unit in a development: (a) means: (i) if the development is a scheme – the unit owner under the Unit Title Schemes Act 2009; or (ii) otherwise – the proprietor of the unit under the Unit Titles Act 1975; and (b) includes a person who has a share of the ownership of the unit as a joint tenant or tenant in common; and (c) also includes the following persons: (i) a mortgagee in possession of the unit; (ii) an executor of an estate that includes the unit; (iii) any other person who has the right to sell the unit. plan of termination means a plan of termination prescribed by regulation for section 54G of the Land Title Act 2000. prescribed number of days, in relation to a provision of this Act, means: (a) if a number of days has been prescribed for the provision by regulation – that number of days; or (b) if a number of days has not been prescribed by regulation: (i) for section 10(1) or (5) or 13(4)(d) – 56 days; or (ii) for section 12(2)(b)(i) or 13(2)(b) – 182 days; or (iii) for section 13(4)(a) or (b) – 14 days; or (iv) otherwise – 28 days. prescribed professional organisation means a professional organisation prescribed by regulation for this Act. proponent, in relation to a development to which Part 4 applies, means: (a) an owner of a unit in the development who proposes: (i) the termination of the development; or

Part 1 Preliminary matters Termination of Units Plans and Unit Title Schemes Act 2014 4 (ii) the termination of the development and the redevelopment of the development land; or (b) a person formed by 2 or more owners of units mentioned in paragraph (a). required percentage, of the owners of the units in a development to which Part 4 applies, means: (a) if the development is at least 30 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 80% of the total interest entitlement of the development on that day; or (b) if the development is at least 20 years of age but less than 30 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 90% of the total interest entitlement of the development on that day; or (c) if the development is at least 15 years of age but less than 20 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1) – owners who together have the right to vote in relation to at least 95% of the total interest entitlement of the development on that day. scheme, see section 5 of the Unit Title Schemes Act 2009. schemes supervisor, see section 5 of the Unit Title Schemes Act 2009. subsidiary scheme, see section 63(1) of the Unit Title Schemes Act 2009. termination, of a development, means: (a) if the development is a scheme – termination of the scheme; or (b) if the development is a unit development, building development, condominium development or estate development – cancellation of the units plan. Tribunal means the Northern Territory Civil and Administrative Tribunal.

Part 1 Preliminary matters Termination of Units Plans and Unit Title Schemes Act 2014 5 unanimous resolution, of a body corporate of a development, means a resolution passed when the number of the votes counted in favour of the resolution is equal to the total number of the units in the development. unit in relation to a development: (a) if the development is a scheme – see section 37 of the Unit Title Schemes Act 2009; or (b) otherwise – see section 4(1) of the Unit Titles Act 1975. unit development means a development to which Part III of the Unit Titles Act 1975 applies, and includes lots subdivided under section 26Y, and building lots subdivided under section 26ZV, of that Act. valuer means a person who is a member of a prescribed professional organisation. (2) The start date for the reckoning of the age of a development for the definition of required percentage in subsection (1) is: (a) for a development that contains buildings: (i) if the date on which the development's buildings were substantially completed (or, in the case of different days, the date on which the first of the development's buildings to be substantially completed was substantially completed) is proven – that date; or (ii) if the date mentioned in subparagraph (i) is not proven but the date on which occupancy of the development's buildings was first permitted under the Building Act 1993 (or, in the case of different dates, the date on which occupancy of the first of the buildings was first permitted under that Act) is proven – that date; or (iii) if the dates mentioned in subparagraphs (i) and (ii) are not proven, but the Registrar-General has provided information under section 38 of the Land Title Act 2000 that indicates the earliest date on which a development's buildings existed – that date; or (b) for a development that does not contain buildings, or if the dates mentioned in paragraph (a)(i), (ii) and (iii) are not proven – the date on which the scheme was formed or the units plan was registered.

Part 3 Termination by unanimous resolution Termination of Units Plans and Unit Title Schemes Act 2014 6 (3) A term not defined in this Act but defined in the Land Title Act 2000, Real Property (Unit Titles) Act 1975, Unit Title Schemes Act 2009 or Unit Titles Act 1975 has the same meaning in this Act. 5 Application of Criminal Code Part IIAA of the Criminal Code applies to an offence against this Act. Note for section 5 Part IIAA of the Criminal Code states the general principles of criminal responsibility, establishes general defences, and deals with burden of proof. It also defines, or elaborates on, certain concepts commonly used in the creation of offences. Part 2 General rules 6 Termination of development (1) Unless section 72 of the Unit Title Schemes Act 2009 applies, a development may be terminated only under this Act: (a) by unanimous resolution; or (b) if Part 4 applies – by a vote of the required percentage of the owners of the units in the development in accordance with that Part; or (c) by order of the Tribunal under Part 5. (2) A higher scheme of a development may not be terminated under this Act unless, at the same time, all its subsidiary schemes are also terminated. Part 3 Termination by unanimous resolution 7 Termination by resolution A development may be terminated if the body corporate of the development decides to terminate it by a unanimous resolution.

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 7 Part 4 Termination by vote of required percentage of owners 8 Application of Part This Part applies to the termination, by a resolution of the required percentage of the owners of the units in a development: (a) that is at least 15 years of age on the day on which the proponent makes the application for an approval certificate under section 9(1); and (b) in which there are at least 10 units. 9 Application for approval certificate (1) If there is no unanimous resolution to terminate a development, the proponent of the termination of the development must make a written application to the schemes supervisor for an approval certificate, accompanied by the fee prescribed by regulation and a draft notice of proposed termination. (2) A draft notice of proposed termination must contain the following information: (a) the name and contact details of the proponent; (b) an explanation of the process required under this Part for the termination of the development that: (i) if the schemes supervisor has published a form of explanation – is in that form; and (ii) if the development is a unit development, building development, condominium development or estate development – states that there is a requirement that any development resulting from any redevelopment is a scheme; (c) a statement of the right of an owner of a unit in the development to sell the unit in accordance with this Part if the proposed termination is approved; (d) a statement of any proposed disposition of the property that is owned by the body corporate immediately before the termination;

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 8 (e) if redevelopment of the development land is proposed – a description of the reason for the proposed termination, and a description of the proposed redevelopment, including the following: (i) architectural plans for the proposed redevelopment; (ii) a statement of the approximate date on which it is proposed that the redevelopment would start and be completed; (iii) the estimated cost of the proposed redevelopment, including a plan for the financing of the proposed redevelopment; (iv) a proposal for the way in which owners of units in the development, and any tenants, would be dealt with during the carrying out of the works for the proposed redevelopment, and, if applicable, after its completion, including in relation to relocation or a payment to the owners instead of relocation; (v) if the proposed redevelopment would result in a higher scheme or subsidiary scheme – the information prescribed by regulation; (vi) if applicable, a proposed scheme statement for the development land after the redevelopment is completed; (vii) an estimate of the value of the development land after the proposed redevelopment is completed; (viii) a statement disclosing any arrangements or proposed arrangements with a person for any proposed redevelopment; (f) any other information about a matter mentioned in paragraphs (a) to (e) or another matter prescribed by regulation.

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 9 10 Approval certificate (1) As soon as practicable after receiving an application under section 9(1), the schemes supervisor must review the application, and do one of the following, within the prescribed number of days after receiving the application: (a) if satisfied that the draft notice is sufficient to permit the owners of the units in the development to make an informed decision on the proposed termination – issue an approval certificate to the proponent; (b) if not satisfied that enough information has been provided for the schemes supervisor to decide whether or not to issue an approval certificate – serve on the proponent a request that: (i) describes the type of information sought; and (ii) fixes a date before which the proponent must provide the information; (c) if not satisfied that the draft notice is sufficient as described in paragraph (a) – do one of the following: (i) if satisfied that the matters to be addressed for the application to comply with this Part could likely be addressed within a reasonable time – serve on the proponent an explanatory notice that: (A) describes those matters; and (B) fixes a date before which the proponent must address those matters; (ii) otherwise – reject the application. (2) If an explanatory notice under subsection (1)(c)(i) is served on the proponent, the proponent may do one of the following before the date fixed in the notice: (a) address the matters in accordance with the explanatory notice and serve on the schemes supervisor an amended draft notice of proposed termination; (b) choose not to proceed with the proposed termination and serve a notice withdrawing the application on the schemes supervisor;

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 10 (c) appeal to the Tribunal against the explanatory notice, not later than the last day of the prescribed number of days after the date fixed in the notice. (3) The proponent is taken to have abandoned the application for the approval certificate if: (a) a request under subsection (1)(b), or an explanatory notice under subsection (1)(c)(i), is served on the proponent; and (b) the proponent does not provide the information, or address the matters, before the date fixed in the request or notice, or any later date agreed to by the schemes supervisor. (4) If an amended draft notice of proposed termination is served under subsection (2)(a), the schemes supervisor: (a) must deal with the amended draft notice of proposed termination as though it were the original draft notice of proposed termination that accompanied the application served under section 9(1); but (b) must not serve another request under subsection (1)(b) or explanatory notice under subsection (1)(c)(i) after reviewing the amended draft notice. (5) If the schemes supervisor does not do one of the actions required by subsection (1) before the last day of the prescribed number of days applicable to that subsection: (a) the application for an approval certificate is taken to have been rejected; and (b) the proponent may apply to the Tribunal, not later than the last day of the prescribed number of days after the last day of the prescribed number of days applicable to subsection (1), for an order that has the same effect as an approval certificate; and (c) if the schemes supervisor does one of the actions mentioned in subsection (1) before the Tribunal has begun to hear the application under paragraph (b): (i) the action is as valid as if it had been done before that last day of that prescribed number of days; and (ii) the Tribunal must not proceed to hear the application; and

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 11 (iii) the schemes supervisor must, if the proponent so requests, pay to the proponent an amount not greater than the amount of any filing or hearing fee paid in relation to the application by the proponent. (6) A draft notice of proposed termination (or amended draft notice of proposed termination) becomes the notice of proposed termination for this Act: (a) if the proponent has applied to the Tribunal for an order under subsection (5)(b) – when the order made by the Tribunal that has the same effect as an approval certificate takes effect; or (b) otherwise – when the approval certificate is issued under this section. 11 Resolution – proposed termination (1) As soon as practicable after receiving an approval certificate under section 10, a proponent must serve a request on the body corporate asking that a meeting of the body corporate be held to vote on a resolution for the termination of the development in accordance with the notice of proposed termination. (2) The body corporate must: (a) notify each owner and each mortgagee of a unit in the development of the meeting; and (b) include a copy of the notice of proposed termination with the notice to each owner and each mortgagee of the meeting; and (c) hold the meeting not earlier than 3 months and not later than 12 months after the date of the approval certificate. (3) A mortgagee must be heard at the meeting if the mortgagee: (a) is present at the meeting; and (b) requests to be heard at the meeting to object to the proposed termination of the development. (4) If the body corporate does not do what it is required to do under subsection (2): (a) the proponent may apply to the Tribunal, within the prescribed number of days, for an order requiring the body corporate to do what it is required to do; and

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 12 (b) the Tribunal may make any order it considers necessary, including the following: (i) an order requiring the body corporate to do what it is required to do; (ii) an order requiring another person to do what the body corporate is required to do instead of the body corporate. 12 If resolution passed (1) If, at a meeting held after a request is served under section 11(1), the resolution is passed by the required percentage of the owners of the units in the development: (a) the termination of the development, in accordance with the notice of proposed termination and this Act, is approved; and (b) the body corporate must, within 14 days after the resolution is passed, serve a copy of the resolution on each owner and each mortgagee of a unit in the development; and (c) an objecting owner must do one of the following, within the prescribed number of days after the resolution is served under paragraph (b): (i) give a notice in writing to the proponent stating that the objecting owner is no longer to be considered an objecting owner; (ii) give a notice in writing to the proponent stating that the objecting owner is selling the unit otherwise than under section 13; (iii) serve the written notice of intention to sell the unit under section 13; (iv) apply to the Tribunal for an order under Part 5; and (d) a mortgagee who objects to the proposed termination may apply to the Tribunal, within the prescribed number of days after the resolution is served on the mortgagee under paragraph (b), for an order under Part 5. Note for subsection (1) See section 19 for how and when the termination takes effect.

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 13 (2) The following applies to an objecting owner who gives or serves a notice mentioned in subsection (1)(c): (a) if the notice is given under subsection (1)(c)(i) – the objecting owner must cooperate in the termination of the development; (b) if the notice is given under subsection (1)(c)(ii): (i) the objecting owner must, within the prescribed number of days after giving the notice, provide a copy of a binding contract to purchase the objecting owner's unit to the proponent; and (ii) the objecting owner must proceed with the sale as soon as practicable after providing the copy, and in any event, not later than 42 days after providing it; (c) if the notice is served under subsection (1)(c)(iii) – the objecting owner must proceed with the sale in accordance with section 13 as soon as practicable. (3) If an objecting owner does not do one of the things mentioned in subsection (1)(c) as required by that subsection, or comply with subsection (2)(a) or (c) if applicable, the proponent may apply to the Tribunal, within 28 days after the last day of the prescribed number of days applicable to subsection (1)(c), for an order for the sale of the objecting owner's unit to the proponent: (a) at a price fixed by the Tribunal after it has received the written report mentioned in subsection (5); and (b) on the other terms and conditions ordered by the Tribunal and that comply with any requirements prescribed by regulation as mentioned in section 13(5)(a)(ii). (4) If subsection (2)(b) applies and an objecting owner does not comply with it, the proponent may apply to the Tribunal for an order for the sale of the objecting owner's unit to the proponent: (a) at a price fixed by the Tribunal after it has received the written report mentioned in subsection (5); and (b) on the other terms and conditions ordered by the Tribunal and that comply with any requirements prescribed by regulation as mentioned in section 13(5)(a)(ii). (5) The Tribunal must not fix a price under subsection (3)(a) until it has received a written report of a valuer's expert advice on the value of the unit, assessed on the basis mentioned in section 13(4)(d)(i).

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 14 (6) An application under this section must be served as follows: (a) an application under subsection (1)(c)(iv) or (d) must be served on the following persons: (i) the proponent; (ii) each owner of a unit in the development; (iii) each mortgagee of a unit in the development; (iv) the schemes supervisor; (b) an application under subsection (3) must be served on the following persons: (i) the objecting owner; (ii) each mortgagee of the objecting owner's unit; (iii) the schemes supervisor. (7) The effect of an application mentioned in subsection (1)(c)(iv) or (d) is to suspend termination of the development until the application or, if applicable, an appeal under section 18, has been decided. (8) If a person acquires, or enters into a binding agreement for the acquisition of, a unit in the development after the resolution is passed but before the details and information are registered under subsection (9)(b): (a) the body corporate must, as soon as practicable and in any event within 14 days after the body corporate becomes aware of the acquisition or entering into of the agreement, serve a copy of the resolution mentioned in subsection (1) on the person; and (b) after the copy of the resolution is served: (i) this Act applies to the person as if the person were an objecting owner; and (ii) the person must do one of the things mentioned in subsection (1)(c), within the prescribed number of days after the copy of the resolution is served under paragraph (a).

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 15 (9) After the resolution is passed: (a) the body corporate must give to the Registrar-General, within 14 days after the date of the meeting: (i) a copy of the notice of proposed termination; and (ii) any document or information prescribed by regulation; and (iii) the fee prescribed by regulation; and (b) the Registrar-General must, as soon as practicable after receiving the documents under paragraph (a), register the notice of proposed termination, and the information prescribed by regulation, in the land register kept under section 6 of the Land Title Act 2000; and (c) a person who acquires, or enters into a binding agreement for the acquisition of, a unit in the development after the details and information are registered under paragraph (b) has the same rights and duties as the owner from whom the person has acquired the unit; and (d) the proponent must pay the body corporate, on demand, the amount of the fee that the body corporate has paid under paragraph (a)(iii). (10) The body corporate may apply to the Tribunal for an extension of the 14 days mentioned in subsection (9)(a). 13 Sale to proponent of unit of objecting owner (1) An objecting owner who decides to sell the owner's unit to the proponent under this section must, within the prescribed number of days after a copy of the resolution is served on the objecting owner under section 12(1)(b), serve a written notice of intention to sell the unit on the following persons: (a) the proponent; (b) the mortgagee of the unit; (c) the body corporate; (d) the schemes supervisor.

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 16 (2) The notice under subsection (1) must include the following information: (a) a statement of the price at which the objecting owner offers to sell the unit; (b) a statement of the period (which must end at least the prescribed number of days after the service on the proponent of the notice of intention to sell) during which the offer to sell at the price mentioned in paragraph (a) is open for acceptance; (c) any other information about a matter mentioned in paragraph (a) or (b) or another matter prescribed by regulation. (3) Before the last day of the prescribed number of days applicable to subsection (2)(b), the proponent and the objecting owner may agree to the sale of the unit, either at the price mentioned in subsection (2)(a) or at another price on which they agree. (4) If the proponent and the objecting owner do not agree to the sale of the unit under subsection (3): (a) the proponent must, within the prescribed number of days after the service of the notice under subsection (1), serve a written application on the schemes supervisor, accompanied by the fee prescribed by regulation, for an appointment under paragraph (b); and (b) the schemes supervisor must, within the prescribed number of days after the service of the application under paragraph (a), request a prescribed professional organisation to appoint a valuer to provide expert advice as to the value of the unit; and (c) the prescribed professional organisation must, within the prescribed number of days after the request under paragraph (b), appoint a valuer to provide that advice; and (d) within the prescribed number of days after the appointment under paragraph (c), the valuer must: (i) assess the value of the unit, using the rules in Schedule 2 to the Lands Acquisition Act 1978 in the same way as they would be used for an assessment of compensation payable for an acquisition of the unit under that Act; and

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 17 (ii) provide a written report as to the valuer's expert advice on the value assessed under subparagraph (i) to the following persons: (A) the proponent (on payment of the reasonable fees of the valuer); (B) the objecting owner; (C) the body corporate; (D) the schemes supervisor. (5) The objecting owner must, within the prescribed number of days after the report is provided under subsection (4)(d)(ii): (a) execute a binding agreement to sell the unit to the proponent: (i) at a price equal to the value mentioned in the report; and (ii) on terms and conditions that comply with any requirements prescribed by regulation, including as to when the sale will occur or when vacant possession of the unit must be delivered; or (b) apply to the Tribunal for an order under Part 5 in relation to the termination of the development. (6) The following persons may apply to the Tribunal, and the Tribunal may make any order it considers necessary, in the following circumstances: (a) the objecting owner may apply for an order requiring the proponent to apply to the schemes supervisor for the appointment of a valuer as required by subsection (4)(a); (b) the proponent may apply for an order requiring the schemes supervisor to request a prescribed professional organisation to appoint a valuer, if the schemes supervisor does not make the request as required by subsection (4)(b); (c) the proponent, the objecting owner or the schemes supervisor may apply for an order appointing a valuer to perform the functions under subsection (4)(d)(i) and (ii) if the prescribed professional organisation does not appoint one as required by subsection (4)(c);

Part 4 Termination by vote of required percentage of owners Termination of Units Plans and Unit Title Schemes Act 2014 18 (d) the proponent, the objecting owner or the schemes supervisor may apply for an order fixing the price for the sale of the unit if the valuer does not provide the report as required by subsection (4)(d)(ii); (e) the proponent may apply for an order for the sale of the unit to the proponent at the price mentioned in subsection (5)(a)(i) if the objecting owner does not execute the binding agreement mentioned in that subsection; (f) the proponent or the objecting owner may apply for an order fixing the terms and conditions of the sale of the unit to the proponent if the proponent and the owner are unable to agree on the terms and conditions under subsection (5)(a)(ii) as required by that subsection. (7) The following are payable by the proponent: (a) the costs associated with a sale mentioned in subsection (3), (5)(a) or (6)(e) or (f); (b) the reasonable fees of the valuer for performing the functions under subsection (4)(d)(i) and (ii). 14 Limits on vote after resolution defeated (1) This section applies when a person wishes to propose the termination of a development after a resolution for the termination of the development is voted on and not passed by the required percentage of the owners of the units in the development (the earlier resolution). (2) If the terms of the proposal are identical to those in the earlier resolution, the proponent for the earlier notice of proposed termination, or another proponent, may: (a) serve a request under section 11(1) on the body corporate; or (b) make an application under section 9 for an approval certificate. (3) A request mentioned in subsection (2)(a) must not be served, and an application mentioned in subsection (2)(b) must not be made, within 26 weeks after the meeting at which the earlier resolution was not passed. (4) If the terms of the proposal are not identical to those in the earlier resolution, the proponent (whether or not the proponent in relation to the earlier resolution) must make an application under section 9 for an approval certificate but must not make the application within

Part 5 Termination by Tribunal Termination of Units Plans and Unit Title Schemes Act 2014 19 26 weeks after the meeting at which the earlier resolution was not passed. (5) This Act applies every time a request mentioned in subsection (2)(a) is served, or an application mentioned in subsection (2)(b) or (4) is made, in the same way as it does to an earlier proposal. Part 5 Termination by Tribunal 15 Application of Part This Part applies when an application is made to the Tribunal by: (a) a person mentioned in section 16(1) for an order in relation to the termination of a development: (i) if the development is one in which there are fewer than 10 units; or (ii) if the development is one to which Part 4 does not apply for any other reason; or (b) a person mentioned in section 16(2) for an order in relation to the termination of a development to which Part 4 applies. 16 Who may apply to Tribunal (1) The following persons may apply to the Tribunal for an order mentioned in section 15(a): (a) if the development is a scheme: (i) if the scheme is a basic scheme – the body corporate, or an owner of a unit, of the basic scheme; or (ii) if the scheme is a higher scheme – the body corporate, or an owner of a unit, of the higher scheme or any of its subsidiary schemes; (b) if the development is a unit development, building development, condominium development or estate development – the corporation, the administrator of the corporation or an owner of a unit in the development.

Part 5 Termination by Tribunal Termination of Units Plans and Unit Title Schemes Act 2014 20 (2) The following persons may apply to the Tribunal for an order mentioned in section 15(b): (a) a person on whom a right to apply to the Tribunal is conferred by Part 4 if: (i) a unanimous resolution to terminate the development has not been passed; and (ii) a resolution has been passed as mentioned in section 12(1); (b) the corporation, the administrator of the corporation or an owner of a unit in the development if: (i) the development is a unit development, building development, condominium development or estate development; and (ii) a unanimous resolution to terminate the development has not been passed; and (iii) a meeting was held after a request under section 11(1) but the resolution for the termination of the development was not passed by the required percentage of the owners of the units in the development; (c) the body corporate, or an owner of a unit if: (i) the development is a basic scheme; and (ii) a unanimous resolution to terminate the development has not been passed; and (iii) a meeting was held after a request under section 11(1) but the resolution for the termination of the development was not passed by the required percentage of the owners of the units in the development; (d) the body corporate, or an owner of a unit in the higher scheme or any of its subsidiary schemes if: (i) the development is a higher scheme; and (ii) a unanimous resolution to terminate the development has not been passed; and

Part 5 Termination by Tribunal Termination of Units Plans and Unit Title Schemes Act 2014 21 (iii) a meeting was held after a request under section 11(1) but the resolution for the termination of the development was not passed by the required percentage of the owners of the units in the development. 17 Order of Tribunal (1) The Tribunal may make an order approving the termination of a development, or the termination of the development and the redevelopment of the development land, only if the Tribunal considers that: (a) it is just and equitable to do so; and (b) any objection to the termination or redevelopment by an owner of a unit in the development is unreasonable; and (c) it is otherwise necessary to do so, taking into account any factors prescribed by regulation. (2) In deciding whether to approve the termination of a development and any redevelopment of the development land, the Tribunal must also consider the following: (a) the extent to which an owner of a unit in the development is likely to suffer adverse consequences if the termination of the development were ordered; (b) the extent to which an owner of a unit in the development is likely to suffer adverse consequences if the termination of the development were not ordered; (c) the financial benefits and risks of the proposed termination and, if applicable, the proposed redevelopment; (d) whether an order of the Tribunal, or of a court, other than an order for termination of the development, would be more appropriate; (e) any matter prescribed by regulation. (3) In considering the application, the Tribunal must take into account the views expressed by any of the following: (a) the schemes supervisor; (b) an affected local government council;

Part 5 Termination by Tribunal Termination of Units Plans and Unit Title Schemes Act 2014 22 (c) the body corporate, or an owner or mortgagee of a unit in the development or in a higher scheme in relation to the development. (4) The Tribunal may, subject to any requirements prescribed by regulation, make any order it considers necessary in relation to the termination or any redevelopment of the development land, including the following: (a) an order extending the time in which an application to the Tribunal must be made, or to extend any other time limit in this Act; (b) an order providing for accommodation for occupiers of units; (c) an order providing for the sale of a unit of an objecting owner; (d) an order for the formation of a new scheme under the Unit Title Schemes Act 2009 after redevelopment is complete; (e) an order, on application by a person who has an interest in property that the body corporate held immediately before the termination, for the control or disposal of the property; (f) an order for the termination of a tenancy, which may include compensation of the tenant. (5) However, the Tribunal's power under this section does not extend to making an order relating to the consolidation or subdivision of land otherwise than in accordance with the Planning Act 1999. (6) An order of the Tribunal takes effect at the later of the following: (a) if no appeal is instituted under section 18 – at the end of the last day of the prescribed number of days applicable to section 18(3); (b) if an appeal is instituted within the prescribed number of days applicable to section 18(3) but is unsuccessful – at the end of the proceedings for the appeal. 18 Appeal to Supreme Court (1) A party to an application may appeal to the Supreme Court against an order of the Tribunal on the application. (2) The appeal may be made in relation to a question of law only. (3) The appeal must be instituted within the prescribed number of days after the Tribunal makes its order.

Part 6 Effect of termination Termination of Units Plans and Unit Title Schemes Act 2014 23 (4) In deciding the appeal, the Supreme Court may: (a) confirm the Tribunal's order; or (b) set aside the Tribunal's order and substitute another order that the Tribunal could have made. Part 6 Effect of termination 19 When termination takes effect (1) For the termination of a development to take effect, section 54G of the Land Title Act 2000 (the registration provision) must be complied with as follows: (a) if the termination is one to which Part 3 applies – the body corporate must lodge the documents required under the registration provision within 12 months after the unanimous resolution mentioned in section 7 is passed; (b) if the termination is one to which Part 4 applies – the proponent must lodge the documents required under the registration provision within 12 months after the body corporate gives the documents to the Registrar-General under section 12(9)(a); (c) if the termination is one to which Part 5 applies – the body corporate must lodge the documents within 12 months after the order of the Tribunal ordering termination takes effect under section 17(6). (2) The person mentioned in subsection (1)(a), (b) or (c) may apply to the Tribunal for an extension of the 12 months. (3) The termination of a development takes effect when: (a) the documents required for the termination are registered under the registration provision; and (b) the Registrar-General cancels the scheme statement or units plan under the registration provision. 20 Effect of termination (1) On the termination of a development: (a) the body corporate is dissolved; and

Part 6 Effect of termination Termination of Units Plans and Unit Title Schemes Act 2014 24 (b) each person who was an owner of a unit in the development immediately before the termination (a former owner) is entitled to a share of the property held by the body corporate immediately before the termination in accordance with the interest entitlements; and (c) the liabilities of the body corporate are vested jointly and severally in the former owners; and (d) the liabilities for any statutory charges over the common property are vested jointly and severally in the former owners; and (e) each person who was a holder of a registered interest in the development land, other than a lessee, immediately before the termination, continues to be the holder of the registered interest but only in relation to the following land: (i) the land included in all of the units in the development immediately before the termination; (ii) the land that was common property of the development immediately before the termination; and (f) the liabilities for any taxes or statutory charges accrued by a former owner in relation to a unit continue to be vested in the former owner. (2) A former owner: (a) is not liable to pay any stamp duty that would otherwise be payable because of the operation of subsection (1); and (b) is entitled to contributions from other former owners for the liabilities mentioned in subsection (1)(c) or (d) in accordance with the interest entitlements. (3) Subsections (1) and (2) have effect subject to any requirement prescribed by regulation. (4) In this section: owner, in relation to a unit: (a) means: (i) if the development is a scheme – the unit owner under the Unit Title Schemes Act 2009; or

Part 7 Miscellaneous provisions Termination of Units Plans and Unit Title Schemes Act 2014 25 (ii) otherwise – the proprietor of the unit under the Unit Titles Act 1975; and (b) includes a person who has a share of the ownership of the unit as a joint tenant or tenant in common. Part 7 Miscellaneous provisions 21 Misleading information (1) A person commits an offence if: (a) the person gives information to another person; and (b) the other person is the schemes supervisor or a valuer; and (c) the person knows the information is misleading information; and (d) the person knows the schemes supervisor or the valuer is acting in an official capacity. Maximum penalty: 200 penalty units or imprisonment for 12 months. (2) A person commits an offence if: (a) the person gives a document to another person; and (b) the other person is the schemes supervisor or a valuer; and (c) the person knows the document contains misleading information; and (d) the person knows the schemes supervisor or a valuer is acting in an official capacity. Maximum penalty: 200 penalty units or imprisonment for 12 months. (3) Strict liability applies to subsections (1)(b) and (2)(b). (4) Subsection (2) does not apply if the person, when giving the document: (a) draws the misleading aspect of the document to the schemes supervisor's or valuer's attention; and

Part 8 Transitional matters for Termination of Units Plans and Unit Title Schemes Act 2014 Termination of Units Plans and Unit Title Schemes Act 2014 26 (b) to the extent to which the person can reasonably do so – gives the schemes supervisor or valuer the information necessary to remedy the misleading aspect of the document. (5) In this section: acting in an official capacity, in relation to the schemes supervisor or a valuer, means the schemes supervisor or valuer is exercising powers or performing functions under, or otherwise related to the administration of, this Act. misleading information means information that is misleading in a material particular or because of the omission of a material particular. 22 Commencing proceedings Proceedings for an offence against this Act may be commenced only: (a) within 2 years after the date on which the offence is alleged to have been committed; or (b) with the authorisation of the Minister – at a later time within 5 years after the date on which the offence is alleged to have been committed. 23 Regulations (1) The Administrator may make regulations under this Act. (2) The regulations may provide for the formula of the calculation of the fee to be paid by the proponent under section 9(1), including the calculation of the fee as a percentage of the estimated value of the development land mentioned in section 9(2)(e)(vii). Part 8 Transitional matters for Termination of Units Plans and Unit Title Schemes Act 2014 24 Definitions In this Part: commencement means the commencement of this Act.

Part 8 Transitional matters for Termination of Units Plans and Unit Title Schemes Act 2014 Termination of Units Plans and Unit Title Schemes Act 2014 27 25 Application for termination made before commencement (1) This section applies if, before the commencement: (a) one of the following applications had been made to the Supreme Court: (i) an application to cancel a units plan under section 95 of the Unit Titles Act 1975; (ii) an application to terminate a unit title scheme under section 14 of the Unit Title Schemes Act 2009; and (b) the Supreme Court had not made a final order in relation to the application. (2) The Supreme Court must hear and determine the application as if this Act had not commenced. 26 Notice of termination resolution sent before commencement (1) This section applies if, before the commencement: (a) one of the following notices had been sent: (i) a notice of a general meeting at which a resolution authorising the corporation to apply for the cancellation of the units plan is to be voted on under section 95A of the Unit Titles Act 1975; (ii) a notice that a resolution mentioned in section 15(a) of the Unit Title Schemes Act 2009 to terminate a scheme is to be voted on; and (b) the resolution had not been voted on. (2) The resolution is to be voted on, and if it is passed unanimously the cancellation or termination is to be registered, as if this Act had not commenced. 27 Termination resolution passed before commencement (1) This section applies if, before the commencement: (a) one of the following resolutions had been passed: (i) a unanimous resolution authorising the corporation to apply for the cancellation of the units plan mentioned in section 95A of the Unit Titles Act 1975;

Part 8 Transitional matters for Termination of Units Plans and Unit Title Schemes Act 2014 Termination of Units Plans and Unit Title Schemes Act 2014 28 (ii) a unanimous resolution mentioned in section 15(a) of the Unit Title Schemes Act 2009 to terminate a scheme; and (b) the cancellation or termination had not been registered. (2) The cancellation or termination is to be registered as if this Act had not commenced.

ENDNOTES Termination of Units Plans and Unit Title Schemes Act 2014 29 ENDNOTES 1 KEY Key to abbreviations amd = amended od = order app = appendix om = omitted bl = by-law pt = Part ch = Chapter r = regulation/rule cl = clause rem = remainder div = Division renum = renumbered exp = expires/expired rep = repealed f = forms s = section Gaz = Gazette sch = Schedule hdg = heading sdiv = Subdivision ins = inserted SL = Subordinate Legislation lt = long title sub = substituted nc = not commenced 2 LIST OF LEGISLATION Termination of Units Plans and Unit Title Schemes Act 2014 (Act No. 48, 2014) Assent date 8 December 2014 Commenced 1 January 2015 (s 2) Statute Law Revision Act 2017 (Act No. 4, 2017) Assent date 10 March 2017 Commenced 12 April 2017 (Gaz G15, 12 April 2017, p 3) Agents and Land Legislation Amendment Act 2019 (Act No. 6, 2019) Assent date 28 March 2019 Commenced ss 3 to 5, 9 and 10, pts 3 to 5, ss 17, 25 to 27, 29, 33 and 34: 1 May 2019 (Gaz G18, 1 May 2019, p 4); rem: 1 September 2019 (Gaz G26, 26 June 2019, p 7 and Gaz G30, 24 July 2019, p 2) 3 GENERAL AMENDMENTS General amendments of a formal nature (which are not referred to in the table of amendments to this reprint) are made by the Interpretation Legislation Amendment Act 2018 (Act No. 22, 2018) to: ss 1, 4, 6, 12, 13, 17, 19, 20, 25, 26 and 27. 4 LIST OF AMENDMENTS s 7 amd No. 6, 2019, s 16 s 19 amd No. 4, 2017, s 34 pt 9 hdg exp No. 48, 2014, s 48 pt 9 div 1 hdg exp No. 48, 2014, s 48 ss 28 – 30 exp No. 48, 2014, s 48

ENDNOTES Termination of Units Plans and Unit Title Schemes Act 2014 30 pt 9 div 2 hdg exp No. 48, 2014, s 48 ss 31 – 32 exp No. 48, 2014, s 48 pt 9 div 3 hdg exp No. 48, 2014, s 48 ss 33 – 35 exp No. 48, 2014, s 48 pt 9 div 4 hdg exp No. 48, 2014, s 48 ss 36 – 43 exp No. 48, 2014, s 48 pt 9 div 5 hdg exp No. 48, 2014, s 48 ss 44 – 47 exp No. 48, 2014, s 48 pt 9 div 6 hdg exp No. 48, 2014, s 48 s 48 exp No. 48, 2014, s 48

1 Termination of Units Plans and Unit Title Schemes Act 2014

The Act introduces and relies on a set of technical concepts that determine eligibility, thresholds and timelines. The key definitions are in s 4. They include: proponent (an owner or group of owners who propose termination and possibly redevelopment) (s 4(1)); required percentage (the supermajority threshold that varies with the age of the development: 80%, 90% or 95% depending on age bands) (s 4(1)); draft notice of proposed termination and notice of proposed termination (ss 9(2), 10(6)); approval certificate (s 4(1)); prescribed number of days (the statutory default timeframes where regulations are silent; defaults are specified in s 4(1)); and objecting owner (an owner who did not vote in favour where the required percentage resolution passed) (s 4(1)).

The Act distinguishes three termination pathways. A unanimous resolution (Part 3, s 7) requires every vote and bypasses Part 4/5 processes. Part 4 provides the structured supermajority pathway for developments meeting objective criteria: at least 15 years old and at least 10 units (s 8). Part 5 creates a Tribunal‑led termination route where Part 4 is inapplicable or for developments with fewer than 10 units, and provides standing rules about who may apply (ss 15-16). Section 6(2) interlocks terminations with hierarchical schemes: a higher scheme cannot be terminated unless subsidiary schemes are also terminated.

The approval certificate (s 10) is a gating mechanism. The schemes supervisor must determine whether the draft notice contains sufficient information to let owners make an informed decision. The Act lists what the draft notice must include: contact details, a process summary, statements about owners’ rights and property disposition, and if redevelopment is proposed, architectural plans, timing estimates, financing plans, accommodation or compensation proposals for owners/tenants, information about higher/subsidiary schemes, a proposed post‑redevelopment scheme statement and an estimate of post‑redevelopment value (s 9(2)(a)-(e)). The content requirements convey that the statutory process is intended to channel information to facilitate informed voting and post‑resolution administration.

Valuation is a specific concept for compulsory acquisition of objecting owners’ units. When an objecting owner either offers a unit for sale under s 13 or refuses to sell, the Act requires a valuer appointed through a prescribed professional organisation to assess the unit using Schedule 2 of the Lands Acquisition Act 1978 rules (s 13(4)(d)(i)). The valuer must provide a written report that the Tribunal will use to fix a purchase price if necessary (s 13(4)(d)(ii), s 12(5)). The Act therefore imports acquisition valuation methodology into this termination context.

Timing and procedural defaults are critical conceptual controls. The Act uses “prescribed number of days”, defined in s 4(1) with a set of specified defaults; these timings govern the schemes supervisor’s review, proponent and body corporate actions, valuer appointment and owner response windows (see defaults in s 4(1) and the sections that refer to prescribed timeframes, e.g. s 10(1), s 12(1)(c), s 13). Further, the registration requirement in s 19 ties legal effect to the Land Title Act 2000 registration provision (s 54G), and requires lodging of documents within 12 months of the relevant trigger event (s 19(1)).

Enforcement and review are institutionalised. The Tribunal has a gatekeeping function and broad but defined remedial powers (s 17(4)), including ordering sales, accommodation arrangements, redevelopment outcomes and the formation of a new scheme after redevelopment (s 17(4)(b)-(d)). Appeals from Tribunal decisions are constrained to questions of law and go to the Supreme Court (s 18). Criminal sanctions apply for materially misleading information to the schemes supervisor or a valuer acting in an official capacity (s 21), and Part IIAA of the Criminal Code applies (s 5).

Finally, the Act sets out the post‑termination entitlement and liability mechanics: the body corporate dissolves and former owners receive shares of the property according to interest entitlements (s 20(1)(a)-(b)); liabilities of the body corporate and statutory charges become jointly and severally vested in former owners (s 20(1)(c)-(d)); certain registered interests survive but only in relation to the relevant land parcels (s 20(1)(e)); and no stamp duty is payable because of the operation of subsection (2)(a) (s 20(2)).

Owners and occupiers

Unit owners are the primary affected class: they may be proponents (s 4(1) definition of proponent), objecting owners (s 4(1)), or be subject to compulsory sale (ss 12-13). Following termination, former owners receive a share of the former body corporate’s property according to interest entitlements and acquire joint and several liability for the body corporate’s liabilities and statutory charges (s 20(1)-(2)). Owners also exercise voting rights that determine whether a termination proceeds; the Act distinguishes unanimous and required‑percentage votes (s 7, s 4(1) definition of required percentage).

Body corporate and corporations

The body corporate (or, for non‑scheme developments, a corporation) is a central actor. It must hold meetings and provide statutory notices following a proponent’s request (s 11(2)). It must lodge documentation for registration with the Registrar‑General if a required percentage resolution passes (s 12(9)(a)). On termination the body corporate is dissolved (s 20(1)(a)), and prior property held by the body corporate vests in former owners (s 20(1)(b)).

Proponents and developers

Proponents, who initiate Part 4 processes, bear up‑front costs (application fee under s 9(1)), must prepare detailed draft notices (s 9(2)), and must pay fees or reimburse the body corporate as required (s 12(9)(d)). If redevelopment is involved, the draft notice must include architectural plans, finance proposals and other specified material (s 9(2)(e)(i)-(vii)). Proponents may also be obliged to purchase objecting owners’ units in certain circumstances, and are liable for costs associated with compulsory sales and valuer fees (s 13(7)).

Mortgagees and financiers

Mortgagees of units are entitled to receive notice of meetings and may be heard at meetings if present and requesting to be heard (s 11(2)(a)-(b), s 11(3)). If they object to the proposed termination, mortgagees may apply to the Tribunal within prescribed days (s 12(1)(d)). Mortgagees of an objecting owner’s unit are specified as persons on whom applications concerning compulsory sale must be served (s 12(6)(b)(ii), s 13(1)(b)).

Schemes supervisor, Registrar‑General and prescribed professionals

The schemes supervisor supervises the approval certificate process: reviewing draft notices, issuing approval certificates, requesting further information, or rejecting matters (s 10). The Registrar‑General is the registration authority for s 54G Land Title Act 2000 requirements; registration (or failure to register) controls when termination takes legal effect (s 19(1)-(3)). A prescribed professional organisation is obliged, on request, to appoint a valuer for compulsory sale valuations (s 13(4)(b)-(c)); valuers must prepare reports using Lands Acquisition Act valuation rules (s 13(4)(d)(i)-(ii)).

Tribunal and courts

The Northern Territory Civil and Administrative Tribunal adjudicates disputes under Part 5, may make orders approving termination subject to statutory criteria (s 17), and hears appeals from proponent claims where the schemes supervisor has not acted within prescribed days (s 10(5)). Tribunal orders take effect subject to appeal periods (s 17(6)), and Tribunal orders may be appealed to the Supreme Court on questions of law within prescribed days (s 18).

Tenants and occupiers

Tenants are mentioned in the information to be provided in the draft notice where redevelopment is proposed and the Act expressly allows the Tribunal to make orders concerning accommodation or termination of tenancy including compensation (s 9(2)(e)(iv), s 17(4)(b), (f)). The Act thus creates potential direct effects on tenants through relocation, coachings or compensation arrangements ordered as part of termination or redevelopment.

Other statutory bodies

Local government is an identified stakeholder whose views the Tribunal must take into account (s 17(3)(b)). Planning and building law intersect: the start date for determining the age of a development may rely on Building Act 1993 occupancy dates (s 4(2)(a)), and the Tribunal is prohibited from ordering consolidation or subdivision inconsistent with the Planning Act 1999 (s 17(5)).

The distribution of burdens and decision rights

Proponents initiate and fund much of the process (s 9(1), s 13(7)). Body corporates are procedural gatekeepers for meetings and registration (s 11(2), s 12(9)). The schemes supervisor controls whether members are given the informational enabling approval certificate (s 10). The Tribunal acts as the final gate for judicially supervised terminations (ss 15-17). Owners retain vote and litigation rights, and objectors have defined procedural options to avoid forced sale or to challenge termination (s 12(1)(c)). Mortgagees have limited participatory rights but no blanket veto.

Duties of proponents

Make a written application to the schemes supervisor for an approval certificate, with the prescribed fee and a draft notice of proposed termination (s 9(1)). The draft notice must include specified particulars: proponent contact details, an explanation of the Part 4 process, statements of owner rights to sell, the proposed disposition of body corporate property, and, where redevelopment is proposed, the prescribed redevelopment information (s 9(2)(a)-(e)). If the schemes supervisor serves an explanatory notice, the proponent must address the matters or appeal to the Tribunal within the prescribed number of days (s 10(2)-(3)). After an approval certificate is issued, the proponent must serve a request on the body corporate to call a meeting (s 11(1)) and, on successful resolution, pay fees the body corporate has paid for registration on demand (s 12(9)(d)).

Duties of the body corporate

Following a proponent’s request, the body corporate must notify each owner and mortgagee of the meeting and include the notice of proposed termination in the notice of meeting (s 11(2)(a)-(b)). It must hold the meeting within the 3-12 month window after the approval certificate (s 11(2)(c)). If the body corporate fails to do this, the proponent may apply to the Tribunal for an order requiring compliance and the Tribunal may order another person to perform the duty (s 11(4)). If the required percentage resolution passes, the body corporate must, within 14 days, serve a copy of the resolution on each owner and mortgagee (s 12(1)(b)) and within 14 days give required documents and fees to the Registrar‑General for registration (s 12(9)(a)).

Owners’ rights and choices

Voting: owners exercise votes and determine whether a termination proceeds either unanimously (s 7) or by required percentage (s 4(1)). Objecting owners have explicit post‑resolution choices: withdraw objection, state intention to sell outside s 13, serve a notice to sell under s 13, or apply to the Tribunal under Part 5 (s 12(1)(c)). If an objecting owner chooses to sell under s 13, the Act gives a defined negotiation and valuation pathway, and if agreement fails it prescribes a valuer appointment and price‑fixing process using Lands Acquisition Act rules (s 13(2)-(5)). An objecting owner may also apply to the Tribunal to challenge the termination or obtain other relief (s 12(1)(c)(iv)).

Mortgagee rights and duties

Mortgagees must be notified and may be heard at the meeting (s 11(2)(a)-(b), s 11(3)). If a mortgagee objects to the proposed termination they may apply to the Tribunal within the prescribed number of days after service of the resolution (s 12(1)(d)). Mortgagees of objecting owners’ units are parties to sale processes and must be served with notices related to intended sale (s 12(6)(b)(ii), s 13(1)(b)). Mortgagees’ rights to procure or protect security interests post‑termination are recognised in s 20(1)(e) which preserves registered interests, where applicable, but limits their scope to specified land.

Schemes supervisor duties

Review an application within prescribed days and issue an approval certificate if the draft notice provides sufficient information, or otherwise request more information, issue an explanatory notice with a cure period, or reject the application (s 10(1)-(3)). If the schemes supervisor fails to act within the prescribed number of days the application is taken to be rejected and the proponent may apply to the Tribunal for an order equivalent to an approval certificate (s 10(5)). The schemes supervisor may also be a named recipient of service for Tribunal applications and valuer reports (s 12(6), s 13(4)(d)(ii)).

Tribunal powers and applicants’ rights

A number of persons have standing to apply to the Tribunal under Part 5 (s 16). The Tribunal may approve termination only if it is “just and equitable” and objections are unreasonable and necessary factors support termination (s 17(1)). The Tribunal must consider prescribed matters including likely adverse consequences for owners, financial benefits and risks, and whether less intrusive orders would be more appropriate (s 17(2)). The Tribunal may make orders on time extensions, accommodation for occupiers, sale of objectors’ units, formation of new schemes post‑redevelopment and control or disposal of property previously held by the body corporate (s 17(4)). Tribunal orders (when made) are subject to appeal to the Supreme Court on questions of law only (s 18).

Valuers and prescribed professional organisations

A prescribed professional organisation must, on the schemes supervisor’s request, appoint a valuer within prescribed days (s 13(4)(b)-(c)). The valuer must assess unit value using Schedule 2 rules of the Lands Acquisition Act 1978 and provide a written report to a set of parties (s 13(4)(d)(i)-(ii)). The proponent pays the reasonable fees of the valuer and costs associated with compulsory sale (s 13(7)).

Criminal and civil obligations

There are criminal offences for giving the schemes supervisor or a valuer misleading information or documents when those persons are acting in an official capacity, with maximum penalties of 200 penalty units or 12 months imprisonment (s 21(1)-(2)). Strict liability applies to certain elements (s 21(3)), and Part IIAA of the Criminal Code applies to offences under the Act (s 5). Time limits for commencing proceedings for offences are in s 22.

Criminal offences and penalties

The Act criminalises the knowing provision of misleading information or documents to the schemes supervisor or a valuer acting in an official capacity (s 21(1)-(2)). Both offences carry a maximum penalty of 200 penalty units or 12 months imprisonment. Section 21(3) makes strict liability applicable to the elements in subsections (1)(b) and (2)(b) (that the recipient is the schemes supervisor or a valuer). Subsection (4) provides a limited defence where the person, when giving the document, draws the misleading aspect to the recipient’s attention and, to the extent reasonably possible, supplies information to remedy it. Part IIAA of the Criminal Code applies to offences under the Act (s 5), which incorporates general principles of criminal responsibility and defences noted in the Code.

Civil and administrative enforcement

The Tribunal is the primary civil enforcement and adjudicative body under the Act. It has broad remedial powers to make necessary orders in relation to termination and redevelopment, but only after considering whether termination is just and equitable and whether objections are unreasonable (s 17(1)-(2)). Orders the Tribunal can make include compelling the body corporate to perform duties, ordering sale of objectors’ units, providing for accommodation or tenancy termination (including compensation), forming a new post‑redevelopment scheme, and controlling/disposing of property of the former body corporate (s 11(4), s 17(4)(a)-(f)). The Tribunal may also appoint valuers in place of a prescribed professional organisation or the schemes supervisor (s 13(6)(c)-(d)).

Enforcement of procedural obligations

The Act gives individuals and parties standing to apply to the Tribunal to enforce procedural duties. For example, if a body corporate fails to call or notify a meeting after a proponent’s request, the proponent may apply to the Tribunal for an order requiring the body corporate to comply, and the Tribunal may require another person to do the duty (s 11(4)). If a proponent fails to supply requested information during the schemes supervisor’s review, the application is taken as abandoned (s 10(3)). If the schemes supervisor fails to act within the prescribed number of days, the application is taken to be rejected and the proponent may apply to the Tribunal for an order equivalent to an approval certificate (s 10(5)).

Time limits, appeals and suspension effects

The Act uses “prescribed number of days” for many time limits, including the schemes supervisor's review (default 56 days for s 10(1)), the period for objecting owners to take post‑resolution steps (default 28 days for many provisions but with specific defaults in s 4(1)), and valuer appointment timetables (s 4(1), s 13(4)). Failure to comply with those time periods triggers statutory consequences: abandonment of an application, suspension of termination where an application to the Tribunal is made (s 12(7)), or the right to apply to the Tribunal for corrective orders (s 11(4)). Tribunal orders take effect when appeal periods lapse or, if appealed, on final disposition (s 17(6)). Appeals to the Supreme Court from Tribunal orders are limited to questions of law and must be instituted within the prescribed number of days (s 18).

Financial enforcement and cost allocation

The Act allocates the fees and costs of the process across participants. Proponents must pay the application fee under s 9(1). If a required percentage resolution passes, the proponent must pay the body corporate the fee the body corporate paid to register the notice with the Registrar‑General (s 12(9)(d)). The proponent also pays costs associated with sales under s 13(7), and must pay the reasonable fees of the valuer appointed to advise on price (s 13(7)). The Act thereby centralises certain financial burdens on the initiating party. The Tribunal may make orders allocating costs or providing other remedies (s 17(4)(e)).

Limitations and prosecutorial windows

Proceedings for offences under the Act must be commenced within 2 years after the alleged offence date, unless authorised by the Minister up to 5 years (s 22). This limitation interacts with the criminal sanctions for misleading information in s 21.

Regulatory enforcement

The Administrator may make regulations under s 23. Those regulations may set fees formulas and other procedural requirements. The Act contemplates regulation to define prescribed professional organisations and valuer appointment processes. Non‑compliance with regulations could be the subject of civil enforcement actions or court/Tribunal scrutiny given the centrality of those processes in facilitating lawful termination.

Unit title and land law framework

The Act is embedded into the broader unit title and land registration framework. It cross‑references the Unit Title Schemes Act 2009, the Unit Titles Act 1975 (formerly Real Property (Unit Titles) Act 1975), and the Land Title Act 2000. Many defined terms are taken from or linked to those statutes (s 4(3)). The registration event that gives legal effect to termination is the Land Title Act 2000 s 54G registration provision; termination occurs when the documents required under that provision are registered and the scheme statement or units plan is cancelled (s 19(1)-(3)). This makes the Land Title Act the operational mechanism for turning an approved termination into a legal land‑title effect.

Valuation and acquisition rules

For compulsory acquisition of an objecting owner’s unit, the Act requires valuation to be performed using the rules in Schedule 2 to the Lands Acquisition Act 1978 (s 13(4)(d)(i)). That imports the valuation methodology from the acquisition regime, aligning compensation measurement with established acquisition valuations. The Tribunal then uses that report to fix the sale price if necessary (s 12(5), s 13(5)-(6)).

Criminal law

Part IIAA of the Criminal Code applies to offences under the Act (s 5). That imports general criminal responsibility principles and defences relevant to misleading statements offences in s 21.

Planning and building law overlaps

The start date for reckoning a development’s age (which determines required percentage thresholds) depends on building completion or first permitted occupancy under the Building Act 1993 where those dates are proven (s 4(2)(a)). The Tribunal’s powers to order subdivision or consolidation are expressly constrained so as not to conflict with the Planning Act 1999; the Tribunal cannot make orders relating to consolidation or subdivision of land otherwise than in accordance with the Planning Act (s 17(5)). This channels land‑use and physical subdivision decisions to the planning regime.

Stamp duty and taxation

The Act stipulates that a former owner is not liable to pay stamp duty that would otherwise be payable as a result of the operation of s 20(1) (s 20(2)(a)). That creates a tax interaction relief for transfers that happen as a consequence of termination. However, s 20(1)(f) preserves liability for taxes or statutory charges accrued by a former owner in relation to a unit.

Tribunal and court interactions

Tribunal orders under the Act can be appealed to the Supreme Court on questions of law only (s 18). The Tribunal’s determinations about justness, redevelopment necessity and valuation are therefore subject to judicial review on legal grounds. The Tribunal also may be asked to substitute for other bodies in making valuer appointments or ordering registration where procedural authorities fail to act (s 13(6)).

Regulatory instruments

Regulations under s 23 may prescribe professional organisations, calculation formulas for fees, other required documents for registration under s 12(9), and various procedural matters. The Act anticipates regulations will define and refine procedural and financial interactions, including how the proponent’s fee might be calculated as a percentage of estimated post‑redevelopment value (s 23(2)).

Transitional and historic applications

Transitional provisions (Part 8, ss 24-27) preserve pre‑commencement processes commenced under prior Acts. If applications to the Supreme Court or notices of meetings were made before commencement, those matters continue to be dealt with as if this Act had not commenced (ss 25-27). That prevents retroactive displacement of pending proceedings.

Interplay with higher/special schemes

A higher scheme cannot be terminated under this Act unless at the same time its subsidiary schemes are also terminated (s 6(2)). This prevents partial terminations from undermining scheme hierarchies established by the Unit Title Schemes Act 2009 (see s 63 references in definitions).

Commencement and early history

The Act received assent on 8 December 2014 and commenced on 1 January 2015 (s 2 and Endnotes 2). The instrument as reproduced includes amendments and reprints up to 1 May 2019 (cover note).

Statute Law Revision and interpretation amendments

General technical amendments of a formal nature were made by the Interpretation Legislation Amendment Act 2018 (Act No. 22, 2018) to a range of sections including ss 1, 4, 6, 12, 13, 17, 19, 20, 25, 26 and 27, according to Endnote 3. These were described as general amendments of a formal nature and are not itemised in detail in the source.

Agents and Land Legislation Amendment Act 2019

The Agents and Land Legislation Amendment Act 2019 (Act No. 6, 2019) amended parts of the Act and inserted amendments with staggered commencement dates. Endnote 2 records the assent date as 28 March 2019 and that certain sections commenced on 1 May 2019 (ss 3 to 5, 9 and 10, parts 3 to 5, ss 17, 25 to 27, 29, 33 and 34) with some provisions later remade or remitted with other commencement dates referenced. Section 7 was amended by No. 6, 2019, s 16 (Endnote 4).

Specific section amendments listed

Endnote 4 gives a short list: s 7 amended by No. 6, 2019, s 16; s 19 amended by No. 4, 2017, s 34. The endnotes also list expiry and repeals of earlier Part 9 and related sections on expiry, indicating the Act has had structural modifications post‑enactment.

Transitional arrangements preserved

Part 8 contains transitional provisions (ss 24-27) that were enacted with the original Act to handle applications, notices and resolutions in train at commencement. These provisions were left in place and may have been affected by later formal amendments mentioned in Endnotes 2-4.

Regulatory development anticipated

Section 23 contemplates regulations that will supply detail, and Endnote 3 indicates future‑looking or housekeeping amendments may occur. The Act’s operation therefore depends in part on delegated legislation, with a potential future amendment history in the regulations (s 23(2) contemplates a fee formula).

How to read the amendment history

The consolidated text includes notes about reprints and formal amendments. Users should rely on the reprint date and cross‑check with the Northern Territory legislation database for any changes after 1 May 2019, particularly in the Governor’s or Administrator’s instrument schedules that declare the commencement of specific amendments.

What is not in the source

The source does not include any case law interpreting the Act nor does it show any specific regulations made under s 23. It lists primary amending Acts and the specific sec‑amp changes made by them as above. For contemporary practice, always confirm current versions, accompanying regulations, and relevant decisions of the Tribunal and Supreme Court since the Act’s commencement and amendments.

No cases named in the source

The Act as provided contains no judicial decisions, reported Tribunal determinations, or case law citations. The statutory provisions anticipate litigation (for example, Tribunal applications, appeals to the Supreme Court and valuer disputes) but the source does not record any decisions applying the Act.

Litigation pathways established by the Act

The Act creates a defined dispute resolution path. Parties can apply to the Northern Territory Civil and Administrative Tribunal in multiple contexts: for orders equivalent to approval certificates where the schemes supervisor fails to act within prescribed days (s 10(5)(b)), to require the body corporate to perform duties (s 11(4)), to seek orders about the sale of objecting owners' units where they fail to exercise statutory options (s 12(3)), and for approvals or orders authorising termination where Part 5 applies (ss 15-17). Tribunal orders are appealable to the Supreme Court on questions of law only (s 18). That two‑tiered design anticipates judicial review as a matter of law and fact finding before the Tribunal.

Likely litigation focal points (based on statutory design)

While no cases are recorded in the source, the Act’s structure suggests likely areas of dispute that would give rise to proceedings:
- Challenges to the sufficiency of a draft notice and the schemes supervisor’s decision to issue or refuse an approval certificate (s 10). The Act provides a direct route to the Tribunal if the schemes supervisor fails to act within prescribed days (s 10(5)). Litigation here would likely turn on the adequacy of information and procedural fairness.
- Valuation disputes arising from compulsory sale of an objecting owner’s unit under s 13, particularly on the use and interpretation of Schedule 2 to the Lands Acquisition Act 1978 valuation rules (s 13(4)(d)(i)). The Act requires a valuer report on that basis (s 13(4)(d)(ii)); disputes about the valuer’s methodology, scope or independence would be a natural locus for Tribunal scrutiny.
- Whether the Tribunal should exercise the statutory discretion to approve termination under s 17(1)-(2), which requires the Tribunal to assess whether termination is “just and equitable” and whether objections are unreasonable. Litigation could hinge on the weighing of financial benefits and risks, likely adverse consequences to owners, and the availability of alternative orders (s 17(2)(a)-(d)).
- Procedural enforcement by proponents or objectors when statutory timelines are not complied with, including applications to compel the body corporate to call meetings (s 11(4)), or to enforce the lodging and registration requirements under s 19(1).
- Challenges related to the Tribunal’s limits where planning or subdivision is involved, given s 17(5) which prohibits the Tribunal from making orders inconsistent with the Planning Act 1999.

Appeal limits and legal questions

Appeals to the Supreme Court are limited to questions of law (s 18(2)); therefore factual findings and discretionary judgments by the Tribunal would normally be final unless a legal error is alleged. The appeal must be instituted within the prescribed number of days (s 18(3)). Tribunal orders take effect after appeal periods or final determination (s 17(6)), which affects strategic timing for parties.

Practical absence of litigation record in the source

Because the source does not include decisions or case citations, practitioners need to search Tribunal and Supreme Court databases and jurisdictional registers for decisions under this Act post‑commencement. The absence of litigation history in the Act does not indicate absence of disputes in practice; rather, the Act defines the institutional routes that disputes will follow.

Timing defaults and prescribed days

The Act uses “prescribed number of days” and supplies defaults in s 4(1) where regulations are silent: 56 days for s 10(1) or (5) or s 13(4)(d); 182 days for s 12(2)(b)(i) or s 13(2)(b); 14 days for s 13(4)(a) or (b); otherwise 28 days. Those defaults affect critical windows (schemes supervisor review, valuer appointment and owner response). Practitioners must identify the applicable “prescribed” periods because failure to act within them triggers statutory consequences (e.g. abandonment of an application under s 10(3), or the right to apply to the Tribunal under s 10(5)). Assuming a regulatory setting will change defaults is risky; rely on the Act’s defaults until regulations say otherwise.

Age and unit count eligibility can disqualify Part 4

Part 4 only applies to developments at least 15 years old and with at least 10 units (s 8). The start date for reckoning age relies on proof of building completion dates, building occupancy under the Building Act 1993, or Registrar‑General information (s 4(2)). Incomplete proof or ambiguous dates can materially change the required percentage threshold (s 4(1) defines required percentage depending on age bands). Ensure documentary proof of dates before selecting the Part 4 pathway.

Higher/sibling scheme constraints

Section 6(2) prevents termination of a higher scheme unless all subsidiary schemes are terminated simultaneously. This can make termination impractical where hierarchies exist; practitioners must map scheme relationships under the Unit Title Schemes Act 2009 (see the cross‑references in s 4 definitions).

Registration is the decisive event

The Act ties legal effect to registration under the Land Title Act 2000 s 54G (s 19). The 12‑month deadline to lodge required documents after the triggering event (s 19(1)) is strict unless the Tribunal grants an extension (s 19(2)). If parties do not complete registration within the window, the resolution or order has not produced legal termination. Relying solely on votes or Tribunal orders without completing s 54G registration risks failure of the whole termination.

Joint and several liability after termination

On termination, liabilities of the body corporate and statutory charges vest jointly and severally in former owners (s 20(1)(c)-(d)). This can create exposure for owners who assumed liabilities would be washed away by termination. The Act also preserves liability for taxes or statutory charges accrued by a former owner in relation to a unit (s 20(1)(f)). Parties should account for contingent or latent liabilities before termination.

Compulsory sale procedure pitfalls

Objecting owners have tactical options after a required percentage resolution (s 12(1)(c)). If they elect to sell under s 13, they must serve notices and comply with strict timelines. If no agreement is reached, there is a detailed valuation and sale path (s 13(4)-(5)). Key pitfalls include failing to serve prescribed notices (s 13(1)-(2)), missing response windows, and misunderstanding valuation methodology (Schedule 2 of the Lands Acquisition Act 1978 is the standard). The proponent pays reasonable valuer fees and associated costs (s 13(7)), which may be substantial.

Misleading information is criminalised

Supplying materially misleading information or documents to the schemes supervisor or a valuer (while they are acting in an official capacity) can attract heavy criminal penalties,up to 200 penalty units or 12 months imprisonment (s 21(1)-(2)). Strict liability applies to whether the recipient is the schemes supervisor or a valuer (s 21(3)). Parties submitting draft notices or valuation information must carefully document disclosures and avoid omissions.

Regulatory detail may be missing

The Act delegates significant procedural detail to regulations (s 23). Examples include the calculation formula for the application fee (s 23(2)) and the prescription of professional organisations and valuer standards. Absent regulations, default timeframes and the Act’s text control. Practitioners must verify whether regulations have been made and what they require.

Tribunal discretion and planning law boundary

The Tribunal’s discretion under s 17 is broad but constrained by the requirement that its orders be “just and equitable” and that objections be unreasonable. The Tribunal cannot order subdivision or consolidation inconsistent with the Planning Act 1999 (s 17(5)), so physical land reconfiguration often needs separate planning approvals. Expect multi‑agency process complexity where redevelopment requires planning and development approvals.

Transitional and pre‑commencement matters

The Act preserves certain pre‑commencement applications and resolutions by providing that pending matters proceed as if the Act had not commenced (s 25-27). Failure to note whether a matter pre‑dated commencement may lead to applying the wrong procedural regime.

Limited appeal grounds and effects of suspension

Appeals from Tribunal decisions go to the Supreme Court on questions of law only (s 18). Parties with substantive grievances grounded in factual or discretionary findings have limited appellate pathways. Furthermore, certain applications to the Tribunal suspend the operation of termination (s 12(7)), which affects timing and potential change in market conditions between resolution and final effect. Parties should plan for both suspension effects and constrained appellate relief.

Checklist for proponents (Part 4 pathway)

Eligibility check:
- Confirm the development meets Part 4 application criteria: at least 15 years old and at least 10 units (s 8). Establish the start date for age calculation using building completion records, Building Act 1993 occupancy permits or Registrar‑General data (s 4(2)).
Draft notice preparation:
- Draft the notice to include all items required by s 9(2): proponent contact details, a process explanation (in a published form if available), the statement of owners’ rights to sell, disposition of body corporate property, and full redevelopment information if applicable (architectural plans, timetable, financing, treatment of owners and tenants, post‑redevelopment scheme statements, estimated post‑redevelopment value, and disclosure of arrangements with other persons) (s 9(2)(a)-(e)).
Fee and application:
- Lodge a written application with the schemes supervisor, include the draft notice and pay the prescribed fee (s 9(1)). Confirm the fee calculation methodology under any regulations (s 23(2)) or use the statutory defaults if regulations are silent.
Respond to schemes supervisor:
- Monitor the schemes supervisor’s review window (default 56 days under s 4(1) unless regulations prescribe otherwise) and respond to requests for information or explanatory notices within the fixed deadline, or appeal the explanatory notice to the Tribunal within the prescribed time (s 10(1)-(3)).
Request meeting and conduct vote:
- On approval certificate, serve the request on the body corporate to hold the meeting (s 11(1)). Ensure the body corporate serves notices to owners and mortgagees and holds the meeting within the statutory 3-12 month window (s 11(2)). Attend and be prepared for mortgagees’ participation (s 11(3)).
Post‑resolution steps:
- If the required percentage resolution passes, ensure the body corporate serves the resolution on owners/mortgagees within 14 days (s 12(1)(b)). Prepare to pay any fees the body corporate pays to the Registrar‑General on demand (s 12(9)(d)). Provide required documents to the Registrar‑General for registration within 14 days of the meeting (s 12(9)(a)-(b)) and lodge registration documents per Land Title Act s 54G within 12 months (s 19(1)(b)). Apply to the Tribunal for an extension to the 12 months if necessary (s 19(2)).

Checklist for objecting owners

Review options:
- After service of the passed resolution, choose one of s 12(1)(c) options within the prescribed number of days: withdraw objection; state intention to sell outside s 13; serve a written notice to sell under s 13; or apply to the Tribunal (s 12(1)(c)).
If selling under s 13:
- Serve the notice of intention to sell on the proponent, mortgagee, body corporate, and schemes supervisor within the prescribed time (s 13(1)-(2)). Provide a binding contract copy if selling outside s 13 under s 12(2)(b)(i) within the prescribed period and proceed with sale within 42 days (s 12(2)(b)(i)-(ii)).
If valuation is needed:
- Be aware valuation will be conducted using Lands Acquisition Act Schedule 2 rules (s 13(4)(d)(i)), and that the valuer will report to relevant parties (s 13(4)(d)(ii)). Prepare documentation to support valuation positions.

Checklist for body corporate

Meeting obligations:
- On receipt of a proponent’s request after an approval certificate, send notices to all owners and mortgagees enclosing the notice of proposed termination and hold the meeting within the 3-12 month window (s 11(2)). If the body corporate fails, expect Tribunal enforcement proceedings (s 11(4)).
Post‑resolution registration:
- If a required percentage resolution passes, promptly serve copies of the resolution on each owner and mortgagee within 14 days (s 12(1)(b)). Within 14 days of the meeting provide the Registrar‑General with copies of the notice of proposed termination, prescribed documents and the prescribed fee (s 12(9)(a)). Maintain records of fees paid; the proponent must reimburse the body corporate on demand (s 12(9)(d)).
Records and service:
- Keep meticulous records of service on mortgagees, owners and purchasers who acquire units after the resolution (s 12(8)(a)-(b)). Ensure that information added to the land register is correct and complete per s 12(9)(a)(ii).

Checklist for mortgagees and financiers

Notification and participation:
- Ensure systems capture and respond to notice of meetings (s 11(2)(a)). If intending to raise objections, attend and request to be heard (s 11(3)). If objecting to the resolution, be prepared to apply to the Tribunal within the prescribed days (s 12(1)(d)).
Protect security:
- Review mortgage documents and account for post‑termination changes to registered interests (s 20(1)(e)). Consult with solicitors about protecting lender security given the dissolution of the body corporate and possible reallocation of land and titles.

Valuer and prescribed professional organisation compliance

Appointment and report timing:
- A prescribed professional organisation must, within prescribed days of the schemes supervisor’s request, appoint a valuer (s 13(4)(b)-(c)). Valuers must value according to Schedule 2 of the Lands Acquisition Act 1978 and produce written reports to named parties (s 13(4)(d)(i)-(ii)). Comply with any professional or regulatory standards and ensure disclosure of conflicts.
Fees and payment:
- Note that the proponent pays reasonable fees of the valuer (s 13(7)). Ensure engagement letters specify fees, scope, timetable and report recipients.

Tribunal and litigation practice points

Standing and timing:
- If the schemes supervisor fails to act within prescribed days, proponents may seek Tribunal orders equivalent to approval certificates (s 10(5)). Objecting owners, mortgagees, body corporates and other named persons have standing under s 16 depending on development type. File Tribunal applications within prescribed days to avoid suspension or loss of procedural rights (s 12(6)-(7)).
Preparing evidence:
- Prepare to address s 17 factors: justness and equity, whether objections are unreasonable, adverse consequences to owners, financial benefits and risks, and whether alternative orders are preferable (s 17(1)-(2)). Submit cogent evidence on valuation, redevelopment feasibility, owner impacts, tenancy arrangements and compliance with planning and building law.

General compliance flag: avoid misleading submissions

Parties must not give materially misleading information or documents to the schemes supervisor or valuers (s 21). When drafting notices, valuations or disclosures, identify potential misleading aspects proactively and remedy them to avoid the criminal offence carve‑out failing (s 21(4)). Keep contemporaneous records of disclosures and communications.

Practical operational points

Map scheme hierarchies to confirm whether higher and subsidiary schemes constrain termination (s 6(2)). Coordinate with planning and building authorities early when redevelopment is involved because Tribunal cannot order subdivision inconsistent with the Planning Act (s 17(5)) and age calculations may rely on Building Act occupancy data (s 4(2)(a)). Revisit the legislation and any regulations before commencing: the Act contemplates regulations that may alter fees, timeframes, or professional prescriptions (s 23).

Record keeping and stakeholder communications

Maintain clear communication with owners, mortgagees, tenants and local councils; prepare owner information packs aligned to s 9(2). Ensure all statutory service requirements are evidenced in case that proof is needed for Tribunal or Registrar‑General processes (s 11(2)(a), s 12(9)(a), s 12(6)).

Termination of Units Plans and Unit Title Schemes Act 2014

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Termination of Units Plans and Unit Title Schemes Act 2014

Source text: opening excerpt

1 Termination of Units Plans and Unit Title Schemes Act 2014

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