A new development for commonhold purposes is defined as a new residential and/or commercial development where the developer applies for registration of the commonhold. It can also be where an existing freehold property is being developed as new residential and/or commercial properties, such as an old factory being converted into flats.
New developments are registered under s.7 of the Act. They are referred to in the Act as a registration without unit-holders. Form CM1 is used to lodge the application for registration, but a form FR1 may also be needed if the freehold land is not already registered.
All units and the common parts are initially registered in the name of the developer. The commonhold is created when the application for registration is completed. The individual units are registered as separate titles even before they have been sold to the unit holders. This makes the registration process of the units much simpler as a form TR1 can be used when the individual units are eventually sold. The common parts are also registered in one title, separate from the units. The extent of the common parts and the units is taken from the commonhold community statement.
