As of 1 July 2025, significant changes to NSW’s community land laws have come into effect, impacting thousands of property owners, buyers, and developers across the state, including right here in Penrith.
If you live in or are considering buying into a community title scheme, such as a gated estate, townhouse complex, or shared-title development, these updates could affect your rights, responsibilities, and how your property is managed. Let’s break down what’s changing and what it means for you.
What Is Community Land?
Community land schemes are a form of property ownership where individuals own their lot (like a house or townhouse) but share ownership of common areas, such as driveways, gardens, or recreational facilities.
Unlike strata schemes, community schemes are governed by the Community Land Development Act 2021 and the Community Land Management Act 2021. These laws have now been updated to better align with modern living and the evolving needs of shared communities.
Key Changes from 1 July 2025
1. Alignment with Strata Laws
The updated legislation brings community schemes more in line with strata schemes, particularly in how they:
- Manage finances and insurance
- Conduct meetings and voting
- Handle disputes and compliance
This means more consistency across different types of shared-title living, which is especially helpful for buyers comparing options.
2. Sustainability Infrastructure
Community schemes can now more easily approve and install sustainability infrastructure, like solar panels, EV charging stations, and water-saving systems.
This is a big win for environmentally conscious communities and aligns with Penrith’s growing focus on sustainable development.
3. Fairer Contract Terms
Developers are now required to provide clearer, fairer contracts when setting up new community schemes. This includes:
- Transparent budgeting
- Realistic levies
- Clear disclosure of developer rights
This change protects buyers from being locked into unfair or unclear arrangements.
4. Committee Responsibilities
The role of the association committee (similar to a strata committee) has been clarified. Members now have a statutory duty to act in good faith, and there are clearer rules around conflicts of interest and decision-making.
This helps ensure that your community is managed fairly and transparently.
What Should You Do?
If you’re a:
- Current owner: Review your scheme’s by-laws and committee structure.
- Committee member: Familiarise yourself with your new legal duties.
- Prospective buyer: Ensure your contract reflects the updated laws and levies.
How can we help?
We’ve been helping Penrith locals navigate property law for over 40 years. Whether you’re buying, selling, or managing a community scheme, our experienced conveyancing and property law team is here to guide you through the July 2025 reforms and help you understand your rights and obligations under the new laws. Contact us today for a consultation or contract review on our contact page or call us on (02) 4734 9333.
#CommunityLandNSW #PropertyLawPenrith #ConveyancingNSW #BellLawyers #NSWLawUpdate #SustainableLivingNSW #PenrithPropertyLaw
