The introduction of the new Strata Title Act Amendment has led to the creation of Leasehold Schemes and Titles in WA.
A leasehold scheme includes a subdivided underlying title with a reversionary interest and leasehold strata titles.
A Leasehold Title is a portion of the subdivided land that acts the same as a freehold parcel for the duration of the leasehold scheme (20-99 years).
Reversionary interest relates to the right of the owner of the underlying title. It allows them to possess the land subdivided by the leasehold scheme, upon expiry of the scheme.
This reversionary interest can be sold or transferred, but this type of transaction does not attract the standard rating and taxing charges contained in an Advice of Sale, an Advice of Sale only is required:
• To ensure fees are not requested in error for the underlying title, PRO will automatically flag the submission as an advice of sale only and not display any fees.
• When the underlying title is entered in PRO, a pop-up window stating ‘The title you have entered has a reversionary interest, please note no fees will display as Advice of Sale only is applicable for this property type’.
• The Electronic Advice of Sale summary will also note ‘Title contains reversionary interest’ under the property use section.
• Multiple Titles containing reversionary interests can be in one PRO submission. Alternative submissions i.e. strata titles for leasehold and freehold titles will need to be separate transactions.
• A title containing reversionary interest in EAS2 can be done as a one lot, one title transaction with no fees displaying. Multi lot, multi transactions are not available in EAS2.
Source: email Landgate Property Reporting Online (PRO) dated 27/05/2020