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How to remove or vary a restrictive covenant
There are three main ways to remove or vary a covenant:
By applying to the Supreme Court for an order under section 84 of the Property Law Act 1958.
By amending the planning scheme under Part 3 of the Planning and Environment Act 1987.
By applying for a planning permit under Part 4 of the Planning and Environment Act 1987.
More information about options 2 and 3 are provided below.
If you want to remove or vary a covenant under any of these procedures, you should obtain your own expert legal advice about the option best suited to the particular circumstances of the case. Likely costs, which may be substantial, should be taken into account before starting any action.
Amending the planning scheme
A restrictive covenant can be removed or varied by amending the planning scheme under Part 3 of the Planning and Environment Act 1987.
The amendment is to the schedule to Clause 52.02 of the planning scheme.
A planning scheme amendment can be requested by anybody, but must be prepared by a planning authority (usually the council) with the approval of the Minister for Planning.
The planning authority must give notice to all owners and occupiers of land benefited by the restrictive covenant, and it must consider all submissions. If the planning authority does not agree to a change requested by a submitter, the submission must be referred to an independent planning panel.
Planning scheme amendments usually affect a large area and require a range of strategic matters to be considered. This method is usually not used to remove covenants on individual lots at the request of the owner, unless other changes to the planning scheme (such as a rezoning of the land) are also proposed.
More information about the planning scheme amendment process
The planning permit process
MAKING AN APPLICATION
A registered restrictive covenant can be removed or varied by applying for a planning permit under Part 4 of the Planning and Environment Act 1987 (the Act).
Any person can apply for a planning permit to remove or vary a registered restrictive covenant. The application must be signed by the owner of the land or accompanied by a declaration that the applicant has notified the owner about the application.
The application must be made to the responsible authority, which is usually the local council. It must be accompanied by a copy of the restrictive covenant and information clearly identifying each lot benefited by the restrictive covenant (refer to section 47(1) of the Act).
It is advisable to discuss a proposed application with the responsible authority before the application is finalised and submitted. The responsible authority can provide advice on the nature of the supporting information to submit with the application.
NOTICE OF AN APPLICATION
Notice of an application to remove or vary a restrictive covenant must be given to all owners and occupiers of land who benefit from the restrictive covenant (subject to some conditions set out in section 47(2) of the Act), and people may object to the application. A notice must also be placed on the site subject to the application, and a notice must be published in the local newspaper.
SPECIAL REQUIREMENTS FOR GRANTING A PERMIT
Strict requirements apply to the granting of a planning permit to remove or vary a registered restrictive covenant. These are set out in sections 60(2) and (5) of the Act.
Section 60(2) applies to restrictive covenants created on or after 25 June 1991. This section states that a planning permit cannot be granted to remove or vary a registered restrictive covenant unless the responsible authority is satisfied that any benefiting landowner will be unlikely to suffer material detriment, including financial loss or loss of amenity.
Section 60(5) applies to restrictive covenants created before 25 June 1991. This section provides that a planning permit cannot be granted to remove or vary a restrictive covenant if a benefiting owner has objected, or if there is any chance that a benefiting owner may suffer detriment of any kind (even if that benefiting owner did not object). This test is very stringent and it may be difficult to prove that there would be no detriment.
RIGHTS OF REVIEW
If the responsible authority refuses to grant a planning permit, the applicant for the permit may apply to the Victorian Civil and Administrative Tribunal (VCAT) for a review of the decision.
If the responsible authority decides to grant a permit, and a person has objected to the proposal, the objector may apply to VCAT for a review of the decision.
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