crown tenures - nsw


The legal description of large rural properties invariably includes some crown tenures or occupations. It is common for all the property to consist of crown tenures. Therefore, unlike his/her urban counterpart the rural valuer must have a good knowledge of crown tenures and how they affect the market value of the property. Since crown tenures vary greatly from state to state two states are used for comparative purposes; New South Wales and South Australia.


STATE EXAMPLE - NEW SOUTH WALES

The Department of Lands (DOL) is responsible for the administration, management and protection of crown lands for the Central and Eastern Divisions of the state. It also provides a comprehensive mapping and surveying service and is an agent for the Central Mapping Authority (CMA). Coordinates the State Land Information System. The Western Lands Commission is responsible for pastoral leases in the Western Division.


ABORIGINAL LAND CLAIMS

The Crown Lands Office deals with claims for land lodged under s 36/7 Aboriginal Land Rights Act 1983.


CEMETERIES

The major metropolitan cemeteries such as Rookwood are dedicated on reserved crown land. They are managed by local trustees who are responsible for burials, maintenance and control.


COMMONS

The Crown Lands Office administers the Common Regulation Act through local Land Offices. Trustees are appointed.


COMMONWEALTH/ STATE LAND EXCHANGE

The Crown Lands Office administers on behalf of NSW an agreement with the Commonwealth for the mutual exchange or transfer of properties between governments. For various public purposes.


CONVERSION OF LEASES

It is possible to convert most lease tenures to a purchase title which will when paid off, become freehold. Applications for conversions are lodged with the local Land Office where the requests are determined.

See crown lands office - nsw

See western lands commission (wlc)


CROWN LANDS

The Crown is the ultimate sovereign of all land in the State and today, State Parliament is the Crown. Tenants of the Crown including freehold owners are subject to the doctrine of "eminent domain" that is, their land can be resumed at any time (and if necessary, without compensation) by the Crown.


CROWN GRANT

The first title deed issued by the Crown over alienated land is a Crown Grant. Crown Grants are recorded as the first proprietor on the Folio of the Register and applies to about 11 types of tenure. The Crown reserves part of the bundle of rights to itself such as minerals and riparian rights.


RELEVANT LEGISLATION – NSW

The most important legislation covering Crown lands in NSW are:


The most important government bodies in relation to crown lands are:

Crown lands have two broad classes of user:


Since 1980 the Registrar General has been authorised to issue title deeds for unalienated land. All crown tenures will eventually be held under Torrens Title and all existing purchases and leases are gradually being brought under that title.

The various jurisdictions over crown lands were brought together under the Crown Lands Consolidation Act, 1913 which is administered by the DOL in the Eastern and Central Divisions. The Western Lands Commissioner administers the Western Division.


A complex situation arose with the status of crown tenures because of:


Since 1913 there have been major attempts at rationalization in 1960, the 1970s and 1989. Because of the rationalization programs, crown tenures today are fewer, less complex and have fewer controls than before.

A number of Crown tenures were repealed in 1964 but some minor tenures still exist such as Scrub Leases, Inferior Lands Leases, and Improvement Leases. In 1970 amending legislation allowed conversion of most tenures to unrestricted freehold. The longer term leases can be mortgaged in a similar manner as for freehold land.

The mix of crown tenures broadly, reflects the different philosophical attitudes of the two major parties. The conservative side of politics has favoured ownership or purchase titles whereas Labor has favoured leasehold titles.


CURRENT POLICY – NSW

Under the Crown Lands (Continued Tenures) Act, the existing forms of tenure can be classified into 4 broad groups:

INCOMPLETE PURCHASES

Examples of incomplete purchases are:


REPAYMENTS

Repayments are made on the balance owing at 8% pa.

Minimum annual instalment: $100

For the conversion of a perpetual lease to an incomplete purchase:

Term: 32 years

Interest: 8% pa.


On the sale of an incomplete purchase, the balance is paid in full by the new registered holder within 3 months from transfer. Holders of CPs before 1875 on which interest only is being paid will be required to pay the balance of the purchase money.


GENERAL PURCHASES

Transfer restrictions may be removed from irrigation area holdings which are used for residential, commercial or other non farming purposes.


OTHER PURCHASES


PERPETUAL LEASES


RENTAL POLICY

FOR TENURES NOT SUBJECT TO PERIODIC DETERMINATION

Minimum: $100 pa (rent base)

Then adjusted yearly according to the CPI.

Where the rents are greater than or equal to $100, the rent is subject to annual CPI adjustments.


SUBJECT TO PERIODIC DETERMINATION

No change except all leases are subject to a 5 year rental determination period. Conditions attaching to leases will be limited to those recorded on the Register under the Real Property Act and the general provisions set out in schedule 6 of the Crown Lands (Continued Tenures) Act. The schedule lists the existing statutory requirements in a simplified manner.

Transfer restrictions have been removed on town land leases in irrigation areas and non farming holdings in irrigation areas to be held by corporations or trustees.


CONVERSION TO FREEHOLD

A long term crown lease can usually, be converted to freehold. However, the owner will be required to pay current market value or the original notified value. The original notified value is adjusted annually in line with the CPI.


OTHER PERPETUAL LEASES


TERM LEASES


RENT

Essentially the same as for Perpetual Leases.


CONVERSION

As for Perpetual Leases. Provision no longer exists for the extension of a term lease to a Perpetual Lease.


SPECIAL LEASES (PERPETUITY AND FOR YEARS)

Rents on the above leases are subje to periodic redetermination at intervals of at least 5 years. They cannot be extended to a Perpetual Lease. Nor can they be converted to an Incomplete Purchase, but holders can purchase the freehold.


ADDITIONAL CROWN TENURES


YEARLY LEASES


RENT

Annual renewal as determined by the Minister. May not be transferred without consent of the Minister and no mortgages will be registered over them.


PERMISSIVE OCCUPANCIES AND QUARRY LICENCES

The rent is determined by the Minister and not the Local Land Board.


ROAD ENCLOSURES (PERMITS)

Can now be cultivated in certain circumstances.


RESTRICTED TITLE FREEHOLD

The fee payable for removal of this restriction is 3% of land value. It is no longer necessary to obtain Minister's consent to lease restricted

freehold land.


EXCLUSION FOR ACCESS AND RESERVATIONS FROM SALE

The policy relating to the exclusion of access particularly along watercourses on the conversion of perpetual leases to freehold has now been discontinued except in exceptional circumstances. Similarly, restrictions from sale which have covered the conversion of perpetual leases to freehold in the past are lifted after the lodgement of conversion applications.

Where a reservation from sale is placed over the land for conservation reasons, other mechanisms such as the Environmental Planning and Assessment Act 1979 and the Soil Conservation Act will apply.


See crown lands – south australia



8