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ARTICLE · 28 APRIL 2016

Development conditions requiring registered covenants – factors relating to reasonableness

The use of covenants as a development control mechanism is a relatively new phenomenon and should be used with caution.

AustraliaReal Estate and Construction

The use of covenants as a development control mechanism is a relatively new phenomenon. Section 349 of the Sustainable Planning Act 2009 (SPA) precludes covenants from having legal effect when entered into in connection with a development application other than as a requirement of a condition of a development approval, or under an infrastructure agreement.

Sections 373A of the Land Act 1994 and section 97A of the Land Title Act 1994 impose restrictions on the scope of covenants that may be registered. Most relevantly to planning, the covenant must relate to the use of a lot or part of a lot or a building or proposed building, or be aimed directly at preserving a native animal or plant or a natural or physical feature of the lot that is of cultural or scientific significance. Revegetation is not within the scope of these sections.

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