The Law Society of NSW has reported that the Office of the Registrar General has been asked to provide clarification for conveyancing practitioners about vendor disclosure obligations for strata properties where leases are recorded on the common property folio. In particular, in relation to strata schemes affected by electricity sub-stations on common property that are the subject of leases and sub leases.
The Conveyancing (Sale of Land) Regulation 2017 requires certain documents to be attached to the Contract for Sale of Land. These documents are set out in Schedule 1 of the Regulation (‘Prescribed Documents’).
For Contracts relating to strata or community lots, Item 5 of Schedule 1 requires copies of all registered Deeds, dealings and instruments that create (or purport to create) an easement, a profit a prendre, restriction, use of the land or positive covenant that burdens or benefits all or any part of the common property or association property to be annexed. Copies of all memoranda referred to in these instruments must also be annexed.
Leases and subleases of common property are generally not required to be annexed to the contract as part of the vendor disclosure obligations, unless they create any of the interests noted in Item 5 of Schedule 1 (this is distinct from any contractual obligation to annex a copy of a lease of a lot, such as where a lot is being sold with a tenant in occupation and the lease is being assigned).
This article is provided for general information purposes only and should not be construed as a legal advice. In all instances contracting parties are reminded to consider each of the dealings recorded on the folio of the register to determine whether those items which require disclosure under the Regulations either as a prescribed document under Schedule 1 or to satisfy a warranty obligation under Schedule 3.
For more information, please contact Nicole Rockliff of Rockliff Snelgrove Lawyers on (02) 9299 4912.