(1) The Registrar may cancel a unit plan upon the application of the proprietor or proprietors of all the units shown on the plan.
(2) Every such application to the Registrar for cancellation of a unit plan shall be in form 5 in Schedule 1, and shall be accompanied by or have lodged in support thereof—
(b) the outstanding copy (if any) of every registered mortgage, charge, lease, or sublease relating to any unit or to any part of the common property; and
provided that the Registrar may dispense with production of any such outstanding certificate of title or copy.
(3) Before cancelling the unit plan, the Registrar shall satisfy himself that all rates which have been assessed in respect of the units and the common property have been paid, and that any administrator has consented to the cancellation, and that no unit is subject to any caveat, mortgage, charge, lease, or sublease registered against the title to the unit.
(4) The cancellation of a unit plan shall be effected when a memorandum of cancellation has been appropriately entered on the plan or the recorded copy thereof and on the supplementary record sheet (if any) by the Registrar.
(5) Upon the cancellation of the unit plan—
(b) the fee simple estate, or (as the case may be) the estate as lessee or licensee, in that part of the land which immediately before the cancellation comprised units shall vest in those persons referred to in paragraph (a) in the same shares as the estate referred to in that paragraph is held by those persons, and shall merge with that estate:
(6) Where 2 or more persons were the proprietors of any unit, whether as joint tenants or tenants in common, the share in the land which vests in them as aforesaid shall, as between themselves, vest in them—
(b) as tenants in common in shares corresponding to the shares in which the unit of which they were the proprietors was vested in them immediately before the cancellation, if that unit was then vested in them as tenants in common,—
and the Registrar shall issue a certificate of title for the land to the persons entitled thereto in accordance with paragraphs (a) and (b).
(7) Upon the cancellation of a unit plan the body corporate shall be deemed to be dissolved; and, unless otherwise determined beforehand by unanimous resolution of the persons who were the proprietors immediately before the cancellation, all property and money (including insurance money received by the body corporate) shall, subject to any right of set-off, be distributed among those persons according to their unit entitlements immediately before the cancellation:
provided that the body corporate shall be deemed to remain in existence to the extent that any debt is owing by it and in respect of any action pending against it, and the liability of the persons who were the proprietors immediately before the cancellation shall continue accordingly.
(8) The Registrar must, on cancelling a unit plan, give notice to the territorial authority (as defined in the Local Government Act 2002) in whose district the land is situated that the plan has been cancelled and the body corporate dissolved.
(9) The Registrar shall also cancel any relevant supplementary record sheet; and, for the purposes of section 67 of the Land Transfer Act 1952, that sheet shall be deemed to be a certificate of title issued under that Act in respect of that land.
Compare: Victoria Act, s 27
Subsection (3) was amended, as from 2 November 1979, by section 24(1) Unit Titles Amendment Act 1979 (1979 No 37) by substituting the words
“is subject to any caveat, mortgage, charge, lease, or sublease registered against the title to the unit” for the words
“or part of the common property is subject to any caveat, mortgage, charge, lease, or sublease”.
Subsection (5)(c) was inserted, as from 2 November 1979, by section 24(2) Unit Titles Amendment Act 1979 (1979 No 37).
Subsection (8) was amended, as from 1 April 1980, by section 8(3) Local Government Amendment Act 1979 (1979 No 59) by substituting the words
“territorial authority (as defined in the Local Government Act 1974) in whose district” for the words
“Council of the county, borough, or town district in which”.
Subsection (8) was substituted, as from 1 July 2003, by section 262 Local Government Act 2002 (2002 No 84). See sections 273 to 314 of that Act as to the savings and transitional provisions.
Subsection (8) was amended, as from 22 October 2003, by section 3 Unit Titles Amendment Act 2003 (2003 No 101) by omitting the words
“, and to the Valuer-General,”.
Subsection (9) was inserted, as from 2 November 1979, by section 24(3) Unit Titles Amendment Act 1979 (1979 No 37).