Under what circumstances can unit titles be created following residential development?

Detailed Explanation

Unit titles can be created when a residential development is capable of being legally divided into separate ownership areas (units) and shared areas (common property) through the registration of a Units Plan under the Unit Titles Act 2001 (ACT). This applies where the development is suitable to operate as a unit title scheme, allowing individual parts of the development to be separately owned while maintaining shared areas that are jointly managed by the owners. Examples of residential developments that may be suitable for unit titles include:

• Apartments (Class A units): where each unit is defined by the boundaries of the building, such as walls, floors, and ceilings. This is commonly used for apartment buildings where individual apartments are separately owned, while areas such as hallways, lifts, and shared facilities form part of the common property.
• Townhouses or dual occupancy developments (Class B units): where each dwelling can be separately identified and owned. In these developments, each townhouse or dwelling may form an individual unit, while shared areas such as driveways, access ways, or landscaped areas may form part of the common property.

For a unit title scheme to be created, the development must generally include:

• at least two units, so that separate ownership interests can be established;
• common property, being areas that are shared and jointly managed by the unit owners; and
• a registered Units Plan, which defines the boundaries of each unit, identifies common property, and establishes the ownership interests associated with each unit.

Once the Units Plan is registered, the individual units become separate legal interests that can be owned, transferred, or dealt with independently, subject to the requirements of the relevant legislation and any planning or Crown lease conditions.