Development Covenants in Crown Leases for redevelopment sites

There has been a change in practice for Crown leases that are granted as a result of a development application for construction, consolidation or subdivision where there are existing buildings on site (i.e. redevelopment).

If development approval requires the surrender of an existing lease and the re-granting of a new lease the Planning and Land Authority will no longer automatically insert development covenants (a timeframe to commence and complete the approved development) into the lease granted as a result of development approval.

Where there is a subdivision that results in a lease being issued over one or more undeveloped blocks, the lease will continue specify the time within which the lessee will need to commence and complete the approved development.

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