crown
leasehold - act
Residential
land in the ACT is held under a 99-year lease from the Crown. This
means that you do not own the land outright but rather you lease the
right to use it for 99 years. There is a nominal rent but it is not
paid unless asked for. This factor together with almost certain
extension of the term means that ownership in the ACT is very similar
to freehold ownership in NSW.
All
land in the ACT is held under the Real Property Act 1925. This Act
is similar to Real Property Acts in each Australian State. Land so
held is known as Torrens Title land which is State-guaranteed title
based on a registration system. See
torrens title.
The
Buyer buys the residue of the term of the lease granted for the
subject block. The Buyer has similar certainty of ownership (because
of the Torrens system) as has the owner of freehold land elsewhere.
Leasehold provides the ACT Government with a very convenient and
direct method for controlling land use. The Land (Planning and
Environment) Act 1991 (ACT), s171, gives the owner the right within
the last 30 years of the term to obtain the grant of a further
residential lease. The same Act details the compensation rights if
there is no further lease granted.