Western Australian Current Acts Western Australian Current Acts (1) A strata titles
scheme is terminated —
(a) for
a leasehold scheme —
(i)
at the end of the expiry day for the scheme; or
(ii)
if the registration of the scheme is cancelled before
that day, when the cancellation of the registration of the scheme is
registered or recorded by the Registrar of Titles;
or
(b) for
a freehold scheme, when cancellation of the registration of the scheme is
registered or recorded by the Registrar of Titles.
(2) On termination of
a strata titles scheme, the following occur —
(a) the
scheme documents cease to have any effect;
(b) the
lots and common property cease to exist;
(c) the
land becomes a parcel of land that is not subdivided by a strata titles
scheme;
(d) for
a leasehold scheme —
(i)
the person who was the owner of the leasehold scheme
immediately before termination becomes the owner of the parcel of land and is
entitled to vacant possession of the land; and
(ii)
if the leasehold by-laws (as in force immediately before
termination of the scheme) provided for the payment of compensation on the
expiry of the scheme — the owner of the parcel of land (from time to
time) is liable to pay compensation to the persons who were owners of lots in
the scheme immediately before its termination as required under those by-laws;
(e) for
a freehold scheme — the persons who were owners of the lots immediately
before termination of the strata titles scheme become the owners of the parcel
of land as tenants in common in shares proportional to the unit entitlements
of their respective lots immediately before termination of the scheme (or, if
there was only 1 such owner, the person becomes the owner of the parcel of
land);
(f) the
strata company ceases to exist;
(g) all
rights vested in the strata company immediately before it ceased to exist are
vested in the persons who become the owners of the parcel of land on
termination of the scheme;
(h) the
persons who become the owners of the parcel of land on termination of the
scheme become jointly and severally liable for all of the liabilities of the
strata company subsisting immediately before it ceased to exist (and those
persons are liable to contribute amongst themselves in shares proportional to
the unit entitlements of their respective lots immediately before termination
of the scheme);
(i)
legal proceedings begun by or against the strata company
may be completed by or against the persons who were owners of lots in the
scheme immediately before its termination.
(3) If 2 or more
persons own a lot in a strata titles scheme, or are the owners of a leasehold
scheme, that is terminated, the owners hold their share in the new parcel of
land as tenants in common or as joint tenants in the same manner as they owned
the lot or scheme and, if they owned it as tenants in common, in the same
proportions as they owned the lot or scheme.
[Section 195 inserted: No. 30 of 2018 s. 83.]
[Heading inserted: No. 30 of 2018 s. 83.]