Reviewing a community title scheme on purchase
Community title is used for large master-planned developments combining private lots, community property, and often subsidiary strata or precinct schemes. Buyers take a lot plus membership in the community association with its own budget, by-laws, and governance.
This is an 8-step workflow for reviewing a NSW community title scheme on purchase under the Community Land Management Act 2021 and Community Land Development Act 2021.
Before you start
- Contract for sale with s 66W or s 52A certificate
- Community management statement
- Most recent community association financials and minutes
- By-laws and any architectural or landscaping covenants
The workflow
Map the scheme hierarchy
Identify whether the scheme is a single community scheme, or has subsidiary precinct or neighbourhood schemes. Each layer has separate levies and governance.
Review the community management statement
Review the CMS — it governs use, architectural controls, services, and by-law amendment process. Amendments require supermajority consent.
Examine levies and sinking fund
Review current quarterly levies, special levies, sinking fund balance, and 10-year capital works plan. Calculate annualised holding cost for the buyer.
Check insurance
Confirm the community association holds building insurance for community property and required public liability cover. Individual lots may still require separate cover.
Review recent minutes and disputes
Read the last 12 months of minutes for any pending disputes, defect claims, major works, or governance issues that could materially affect the buyer.
Assess architectural controls
Architectural and landscaping covenants in CTS are often strict. Confirm any buyer plans (pool, extension, shed) are permissible or secure pre-purchase approval.
Check development in the community
If the developer still controls the association (initial period), review handover status, outstanding developer obligations, and defect bond.
Report to client and complete
Deliver a written report to the buyer identifying unusual by-laws, financial risks, and any matters requiring special conditions or price adjustment. Complete on settlement.
What you will have at the end
A purchase completed with full understanding of the community scheme's financial position, governance, and use restrictions.
Common issues
- Missing subsidiary scheme levies in total holding cost calculations
- Architectural covenants that would block the buyer's planned works
- Inadequate sinking fund with major works imminent
- Developer-controlled initial period still in place, limiting owner voice
- Outstanding defect litigation not disclosed in the contract
Run this workflow on a real matter
Quillio reviews NSW community management statements and by-laws, flagging architectural, use, and financial issues for buyer reports. See /practice-areas/property-lawyers.
This workflow is a general guide. Community title regimes differ between states — South Australia, Queensland, and Western Australia have distinct statutes.
Try this workflow with Quillio.
Quillio can run this workflow on a real matter, with citations to current AU authority on every step. The free trial requires no credit card.
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