A Buyer's Guide to Community Title Land in NSW

Community title lets you own an individual parcel of land while sharing ownership and responsibility for common property with other owners. For buyers, the key things to understand are what you own, what the Community Association manages, what levies cover and what rules apply to your lot.

This guide explains the essentials for NSW buyers and how the structure applies at Saltwater Shores at Diamond Beach.

Key Takeaways: 

• You separately own your individual lot under the Torrens Title system.

• A Community Association owns and manages the association property.

• A Community Management Statement sets the framework for the scheme and its by laws.

• Owners contribute levies towards the costs of managing and maintaining association property.

• Community title does not determine whether a lot can be occupied permanently. Zoning and development consent determine permitted use.

• At Saltwater Shores, some nominated lots are approved for permanent residential accommodation while other developable lots are approved for tourist and visitor accommodation.

What Is Community Title in NSW?

Community title combines separate ownership of individual lots with collective ownership and management of shared property. Your lot has its own title and boundaries. At the same time, you become a member of the Community Association responsible for the association property.

Association property can include private roads, landscaping, pathways, recreational areas, environmental land, drainage infrastructure or other facilities that benefit multiple owners.

If you are deciding between a community title lot and a conventional land purchase, read Community Title vs Torrens Title in NSW.

How Does Community Title Differ from Strata?

Strata title is commonly used for apartments and townhouses where owners share parts of a building. Community title is generally used for land based developments where owners have separately defined lots and the shared elements sit outside those lots.

That makes community title well suited to master planned and coastal developments where roads, landscaping, environmental areas or facilities need ongoing collective management.

What is a Community Management Statement (CMS)?

The Community Management Statement is one of the most important documents to review before buying. It sets the framework for how the scheme operates and contains the by laws applying to the Community Association, owners and occupiers.

Depending on the scheme, it may deal with maintenance, access, landscaping, shared services, building and design requirements, insurance, waste, use restrictions and other rules.

Before purchasing, obtain a copy and make sure your solicitor reviews the obligations applying to the lot.

What Do Community Title Levies Pay For?

Levies fund the expenses of the Community Association. The amount depends on the property and facilities included in the scheme.

• maintenance of community roads and pathways

• landscaping and shared open areas

• shared lighting and infrastructure

• environmental management

• insurance for association property

• administration and management

• capital works and major maintenance

Special levies may also be raised where additional funds are required. Buyers should ask for current or proposed budgets, levies and any known major expenditure.

Why Can Community Title Work Well in a Coastal Development

Coastal estates can contain shared areas that are difficult to manage efficiently lot by lot. Community title creates a formal structure for maintaining those areas and sharing the cost between owners.

At Saltwater Shores, the structure allows shared infrastructure, landscaping and other association property to be managed collectively rather than relying on informal arrangements between neighbours.

To see current opportunities within the development, view available land at Saltwater Shores.

Zoning, Permitted Use and Permanent Occupancy

Title and permitted use are separate issues. Community title determines how the land is owned and managed. Planning controls and development consents determine how a lot can be used.

Saltwater Shores is currently within the SP3 Tourist zone under the Greater Taree Local Environmental Plan 2010. The development consent has been modified so nominated lots can be used for permanent residential accommodation, while other developable lots are required to be used for tourist and visitor accommodation.

Saltwater Shores has also lodged a Planning Proposal seeking to rezone the SP3 Tourist portion of the site to R2 Low Density Residential. If approved and the Local Environmental Plan is amended, the rezoning would enable permanent residential occupation across the entire development.

A Planning Proposal is not an approval. Buyers should rely on the planning controls and development consent applying to the particular lot at the time of purchase.

For a clearer explanation of the lots that currently have permanent residential approval, see permanent living at Saltwater Shores.

What Are My Rights and Responsibilities?

You separately own your individual lot and can generally sell, transfer or mortgage it subject to the registered interests and restrictions applying to the property. You are also a member of the Community Association and have rights and responsibilities relating to association property.

Owners must generally pay levies, comply with the Community Management Statement and by laws, maintain their own property as required and meet their own insurance obligations. Owners also participate in decisions about association budgets, maintenance and shared property.

Do Design Guidelines Apply?

Saltwater Shores includes development design guidelines which are referenced in the Community Management Statement. The Design Guidelines include design requirements dealing with matters such as materials, environmental design, colours, fencing, landscaping and external structures. These operate in addition to normal planning and development controls.

Buyers planning to build should check the relevant design requirements before committing to a house design.

What About Insurance?

The Community Association has insurance responsibilities for association property in accordance with the legislation and scheme requirements. Individual owners remain responsible for insurance relating to their own lot and buildings where applicable.

Buyers should review the management statement and obtain insurance advice rather than assuming the association policy covers their individual property.

Questions to Ask Before Buying

• Can I review the Community Management Statement and by laws?

• What are the current or proposed levies?

• What property and infrastructure does the association maintain?

• What is the approved use of this particular lot?

• What design requirements and title restrictions apply?

• What services are available to the lot?

• Who manages the Community Association?

For an established scheme, financial statements and meeting records can also provide useful insight into how the association operates.

Community Title: The Bottom Line

Community title gives you separate ownership of your lot together with a structured way to fund and manage shared property. The trade off is that you pay levies and must comply with the rules of the scheme.

For developments with meaningful shared infrastructure or environmental areas, that can be a practical arrangement. What matters is understanding the documents, costs and approved use of the individual lot before you buy.

For a direct comparison with a conventional title, read Community Title vs Torrens Title in NSW.
Ready to explore Saltwater Shores? View available lots and current pricing or contact the sales team.

FAQs about Community Title Land in NSW

Should you have further questions about Community Title Land in NSW, then we have a section in our FAQ’s which may assist or reach out to us and one of our sales team will provide you with further information.

What to Do Next

Construction is progressing and enquiries are open. If you have been researching land estates on the NSW Mid North Coast, contact the Saltwater Shores team to request current availability, understand the community title structure and discuss whether the estate suits the way you intend to use the property.

To learn more about how community title will operate at Saltwater Shores, visit the enquiry page and our team will be in touch.