Category: Industry Updates
New requirements for creating restrictive covenants in transfers and restrictions in plans will come into effect on 1 July 2018.
From 1 July 2018, all Covenants created in Transfers and many Restrictions created in Plans of Subdivision, will be required to incorporate a Memorandum of Common Provisions (MCP) to contain the details of the Covenant or Restriction. The MCP is a separate registered document. The new “short form” look of the Covenant / Restriction will include a standard preamble, the burdened land, the benefited land, reference to a MCP Dealing No for the details, and generally an expiry date.
Historically, developers of multi lot subdivisions have had the option of creating Covenants to control such things as Design Guidelines etc, through contracts / registration of transfers, on a purchaser by purchaser basis. This option (under the Transfer of Land Act 1958), is …