(1)A layered arrangement of community titles schemes is a grouping of community titles schemes—
(a)in which there is 1 community titles scheme (the principal scheme) that—
(i)is not a lot included in another community titles scheme; and
(ii)is made up of—
(A)the scheme land for all other community titles schemes in the grouping; and
(B)its own common property; and
(C)each lot (if any) that is not a community titles scheme, but that is included in the scheme; and
(b)in which there is at least 1 basic scheme; and
(c)in which there may or may not be 1 or more community titles schemes located between the principal scheme and each basic scheme.
See schedule 1, parts 2 and 3 for examples of layered arrangements of community titles schemes.
(2)Each community titles scheme, other than the principal scheme, in a layered arrangement of community titles schemes—
(a)is a subsidiary scheme for the principal scheme; and
(b)unless it is a lot included in the principal scheme—may also be a subsidiary scheme for another community titles scheme forming part of the layered arrangement.
(3)A subsidiary scheme, for a community titles scheme (scheme A), is a community titles scheme the scheme land for which forms part of the scheme land for scheme A.
(4)In this Act, the expression included in, if used in the context of the inclusion of a lot in a community titles scheme, establishes the relationship the lot has to the scheme and, in general terms, is used to establish that the lot is directly a part of the scheme, rather than only indirectly a part of the scheme.
(5)The diagram and notes in schedule 1, part 3 illustrate more comprehensively how the expression ‘included in’ is used.