A council or accredited certifier may direct in a strata certificate that certain lots being created upon registration of the plan are to be affected by a restriction on use subject to section 63 Strata Schemes Development Act 2015. These lots are referred to as utility lots. This restriction is recorded in the second schedule of the folios as:
RESTRICTION ON THE USE OF UTILITY LOTS (SEE S.63 STRATA SCHEMES DEVELOPMENT ACT 2015) Common property title
PURSUANT TO S.63 STRATA SCHEMES DEVELOPMENT ACT 2015 THIS STRATA SCHEME CONTAINS UTILITY LOT(S)
The legislation indicates that the lot is to be used primarily for storage and not for human occupation also that a utility lot is for the use of a proprietor or occupier of another lot in the scheme which is not another utility lot.
See section 4 Strata Schemes Management Act 2015 and section 63 Strata Schemes Development Act 2015.
Utility lots may be transferred in the same manner as any other strata lot. The restriction does not prohibit any change in ownership.
If a strata plan of subdivision involves a utility lot, steps should be taken to have the restriction removed prior to registration of the plan. If it is the intention of the council that lots in the new plan are to be utility lots, the strata certificate must reflect this.
If a strata plan of consolidation involves a utility lot steps should be taken to have the restriction removed prior to registration of the plan unless all lots being consolidated are restricted.
Where all of the lots being consolidated are utility lots the restriction should be carried forward on the new lot(s).
Release of Restriction
If it is intended to release a restriction from a utility lot a Request (RPA Form 11R) should be lodged. This request must be executed by the local council see section 64 Strata Schemes Development Act 2015.