This has cropped up at our Council recently as well.
We had a senior planner signing off, but no checks in place about debts about land, in one of the recent examples we had about 50% of strata units that had a debt attached to it.
Legal have asked me for advice what happens with the debt on the land.
I note up the top of the form it mentions before signing to complete the steps in the info sheet I circulated below which talks about debts, so I imagine the onus would fall on us if we got put to the test in court.
Termination of a Strata Scheme by the Registrar General (nswlrs.com.au) has some more info as well.
Hope this helps.
Dallas
