Commentary on the Sections: Part 1 Miscellaneous Section 58: Development rights
112.This section and the next are designed to reserve to the developer certain rights to do things which will enable him both to develop and market the units in the development and to develop the common parts, and to react reasonably to commercial pressures.
113.Section 58(1) defines a developer as one who makes an application under section 2, and development business as set out in Schedule 4.  Broadly, this relates to execution or completion of works, marketing and variation of the extent of the commonhold land.  Subsection (2) permits the commonhold community statement to contain provisions to facilitate or permit the developer to do development business, and subsection (3) provides that those provisions may include a requirement that a unit-holder or the association co-operate with the developer for the appropriate purposes, but that the rights conferred on the developer may be constrained by terms and conditions set down in the commonhold community statement and that there may be provisions about breach of such a term or condition.  Subsection (4) provides that any provisions for this purpose made under subsection (2) shall be subject to regulations under section 32, and in the case of development business under paragraph 7 of Schedule 4 which relates to the appointment and removal of directors, subject to the memorandum and articles of association of the commonhold association. Subsection (5) provides that the rights conferred under subsection (2) may be regulated or restricted by regulations.  Subsection (6) provides that, should the developer have been granted rights under subsection (2) but subsequently surrenders them, he shall send a notice to the Registrar, who will note the register and inform the commonhold association and the rights will cease to apply from the date of registration.