New South Wales Consolidated Acts
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STRATA SCHEMES DEVELOPMENT ACT 2015 - SECT 81
Effect of strata development contract
(1) A strata development contract has effect as an agreement under seal
containing the covenants specified in Schedule 3 entered into by the
owners corporation and each person who for the time being is any of the
(a) the developer of the strata scheme,
(b) if the scheme is a
leasehold strata scheme--the lessor of the scheme,
(c) an owner of a lot,
other than the developer,
(d) a registered mortgagee, chargee,
covenant chargee or lessee, or an occupier, of a lot.
(2) The contract ceases
to have effect:
(a) in relation to a person described in subsection (1) (a),
(b), (c) or (d), when the person ceases to be a person so described, and
in relation to all of the persons described in subsection (1), when the
development scheme to which the contract relates is concluded.
(2) does not affect an obligation incurred by a person, or a right that
accrued to a person, under the contract before it ceased to have effect in
relation to the person.
(4) A lessee entitled under a lease to immediate
possession of a development lot is taken to be the developer, and the person
who would otherwise be the developer is taken not to be the developer, for the
purposes of this Act, the regulations and the strata development contract.
(5) A mortgagee, chargee or covenant chargee in possession of a
development lot is taken to be the developer, and the person who would
otherwise be the developer is taken not to be the developer, for the purposes
of this Act, the regulations and the strata development contract.
strata development contract does not permit development to be carried out in
contravention of this Act or any other Act or law.
(7) A provision in any
other contract or instrument under which a strata development contract is
excluded, modified or restricted is void.
(8) A covenant entered into under a
strata development contract does not merge on the transfer of a lot.
section does not affect a right or remedy a person may have apart from a right
or remedy under a strata development contract.
(10) However, the
Strata Schemes Management Act 2015 does not apply in relation to matters
arising under a strata development contract.
Note : A
strata development contract for a strata scheme is void to the extent that it
is inconsistent with a strata management statement for the scheme. See
section 105 (7).
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