Northern Territory Consolidated Acts

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UNIT TITLE SCHEMES ACT 2009 - SECT 71

Amalgamating schemes to form layered scheme

    (1)     Two or more basic schemes that are not subsidiary schemes may be amalgamated to form a layered scheme if:

        (a)     the Tribunal orders the formation of the layered scheme on application by a unit owner or the body corporate of at least 1 of the basic schemes; or

        (b)     the body corporate of each of the basic schemes, by a unanimous resolution, agrees to form the layered scheme.

    (2)     The order or resolution must provide for the following:

        (a)     the first scheme statement of the layered scheme;

        (b)     a subsequent scheme statement of each of the basic schemes reflecting the order or resolution;

        (c)     the rights and liabilities accrued in relation to the basic schemes;

        (d)     other matters prescribed by regulation.

    (3)     The Tribunal may make an order under subsection (1)(a) only if the Tribunal considers it is just and equitable to do so.

    (4)     The body corporate of each of the basic schemes must lodge the subsequent scheme statement mentioned in subsection (2)(b) before the layered scheme is formed.

Fault element:     Strict liability offence.

Maximum penalty:     100 penalty units.

Note for subsection (4)

The bodies corporate of the basic schemes must prepare and lodge the first scheme statement of the layered scheme. See section 20(1)(b) and (2)(c).

    (5)     Except as otherwise provided by this Act, the amalgamation does not affect any accrued liability for a tax or charge relating to the scheme land of any of the basic schemes.

    (6)     A thing done for any of the basic schemes has effect after the formation of the layered scheme to the extent to which it is consistent with the scheme statement of each of the basic schemes and of the layered scheme.

    (7)     This section does not prevent any changes being made to any of the basic schemes under this Act in conjunction with the amalgamation (including, for example, a consolidation of any of the units).

Example for section 71

Diagram 71.1 shows the structure of 2 basic schemes (Schemes A and B).

Diagram 71.2 shows the structure of a layered scheme (Scheme C) formed as a result of the amalgamation of Schemes A and B. Parts of the common property of Schemes A and B (including a swimming pool and tennis court) become the common property of Scheme C.

Diagram 71.1 – Before amalgamation








Scheme A

Common property of Scheme A including a swimming pool and other common property

Unit 1

Unit 2

Unit 3

Unit 4
7FE2C392EE5278D969257FB1007AF700_WordVersion_102.jpg>







Scheme B

Common property of Scheme B including a tennis court and other common property

Unit 1

Unit 2

Unit 3

Unit 4

7FE2C392EE5278D969257FB1007AF700_WordVersion_103.jpg

Diagram 71.2 – After amalgamation

Scheme C

Unit 1 of Scheme C
Scheme A

Unit 2 of Scheme C
Scheme B

Common Property of
Scheme A

Common Property of
Scheme B

Common Property of Scheme C including a swimming pool, tennis court and other common property

Unit 1

Unit 1

Unit 2

Unit 2

Unit 3

Unit 3

Unit 4

Unit 4

7FE2C392EE5278D969257FB1007AF700_WordVersion_104.jpg



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