Introduction of community titles, annual audit report deadline fast approaching, and CPD reminder - Settlement industry bulletin issue 105
2 September 2021
Introduction of community titles, annual audit report deadline fast approaching, and CPD reminder
In this bulletin:
- Introduction of community titles legislation
- Annual audit report deadline is approaching
- Reminder to complete your CPD requirements
Community titles: New strata options for Western Australia
As part of strata reforms in recent years, the Community Titles Act 2018 (WA) (CT Act) came into effect on 30 June 2021. To accommodate the new laws, existing settlement laws have changed.
What is a community scheme?
The new laws introduce a community scheme as a new form of land tenure in Western Australia. A community scheme allows a parcel of freehold land to be subdivided in a way that creates several individual schemes. This differs to the usual strata laws which only allow for the creation of one scheme for each parcel of land.
Community schemes will offer:
- the ability to subdivide land and buildings in the one scheme;
- provide fairer and more flexible governance and common property management options; and
- the ability to share infrastructure between schemes.
What has changed for me?
The changes to the settlement laws and regulations include the insertion of community title related terms, as well as references to the CT Act. The settlement agents' regulations now include community title settlements as a continuing professional development subject.
The changes may also affect you in relation to the documentation you can draft, such as the offer and acceptance contract for a community titled purchase.
More information about community titles, including managing a scheme and buying or selling a lot, is available on the Landgate strata reform page.
If you have any queries about community titles, please contact the Landgate strata enquiry line on 9273 7047 or by email Landgate customer service.
Annual audit report deadline is approaching
Don't forget to lodge your annual audit report for the 2020/21 financial year, with the Commissioner for Consumer Protection by 30 September 2021.
All current settlement agent triennial certificate holders, who held or received monies in trust during the financial year, will need to lodge an audit report. If you did not hold or receive monies in trust during the financial year, you need to submit a Declaration of no receipt of trust funds instead of an audit report.
You can submit audit reports and statutory declarations via email to the audits team.
You may not need to submit an audit or statutory declaration for your individual licence if you meet all of the below criteria:
You did not have an open trust account under your individual licence during the financial year;
You held the role of either bona fide control, branch manager, director, licensed director, partner, or licensed partner for another licensed entity that traded during the financial year;
The licensed trading entity you held the role for, submits its own audit or statutory declaration; and
This exemption only applies for the period of time that you held the role with the other trading entity.
Information on auditing and trust account requirements is available on our Auditing settlement agents - forms and publications page or by emailing the audits team or calling 1300 304 054.
We are nine months into what seems to be another hectic year. Don’t let your busy schedule side-track you from meeting your 2021 Compulsory Professional Development (CPD) requirements.
Reduce your potential for future stress and a potential fine by registering now with approved training providers to complete CPD activities to gain the four core and two elective points by 31 December 2021.
More information on your CPD obligations and the consequences of not meeting these obligations is available on our Compulsory Professional Development (CPD) – settlement agents page or by emailing our contact centre or calling 1300 304 054.
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