Delegations Unlocked: A New Way for SA Councils to Execute Deeds

Up until recently, councils in South Australia were required to follow a process involving council resolutions and the affixing of the common seal in order to execute a deed. Amendments to the Law of Property Act 1936 (LP Act) have now altered this process. 

Historically, South Australian councils have been required to execute deeds by affixing the common seal. This has meant that a council resolution was required to affix the common seal to the deed in accordance with section 38 of the Local Government Act 1999 (SA) (the LG Act). As readers would be aware the affixation of the common seal of the council must be attested by the principal member and the chief executive officer.

Amendments to section 41 of the LP Act now enable a deed to be executed by “a person with express or implied authority to execute documents for and on behalf of the party”. For councils this is expected to enable deeds to be executed by an appropriately delegated officer being an officer to whom the council has delegate the power in section 36(1)(a)(i) of the LG Act, rather than under common seal. Of course, deeds can still be executed under common seal and in that case a council resolution is required to enter into the deed thereby authorising the common seal to be affixed to the deed.

Should you have any queries regarding the implementation of this amendment and its application in local government, please contact Felice D’Agostino on +61 8 8210 1202 at fdagostino@normans.com.au, or Dale Mazzachi on +61 8 8210 1221 at dmazzachi@normans.com.au.