Proposed reform to simplify the process for removing restrictive covenants on title
The Office of the Registrar General has published a discussion paper about simplifying the process for removing obsolete restrictive covenants from property title.
A restrictive covenant is an agreement between parties which restricts the use and benefit of the land and may limit the flexibility of building developments.
In NSW there are three available avenues to set aside restrictive covenants. We refer you to our previous article which sets out the options you may take to remove restrictive covenants affecting your property.
Proposed Reforms
The proposed reform seeks to simplify the process of removing outdated covenants that are no longer applicable to the land by expanding the types of covenants and incorporating sunset dates for all new covenants.
The reforms released for comment by way of consultation discusses the following matters:
Expanding the class of ‘obsolete covenants’ to allow old covenants to be deemed obsolete after 12 years;
Either simplifying or removing the requirement to provide notice to remove obsolete covenants;
Imposing time limits on new covenants; and
Extending the Supreme Court’s powers to extinguish restrictive covenants.
The proposed reforms have not yet been implemented and further legislative comments and review are required prior to taking effect.
Prior to the change, the existing processes to remove restrictive covenants remain in place. We recommend that you speak with one of our people to ascertain how you could potentially set aside a restrictive covenant affecting your property.
Ron Zucker 0410 590 111
Eollyn Cortes 0478 727 395
Sagang Chung 0431 435 333
Julia Zou 0426 670 202
Comments