The Registrar General can end a strata scheme when 100 percent of owners want to sell or redevelop it. If some owners disagree or are unsure, they can follow a collective sale and renewal procedure.
For a strata scheme to be sold or redeveloped:
- owners of at least 75 percent of the lots in the scheme must agree
- the Land and Environment Court must be satisfied that this is justified.
Steps for collective sale and renewal
1. Vote to opt into the process
The owners corporation must first opt in. This applies to strata schemes registered before 30 November 2016. If most owners, more than 50 percent, do not support opting in, the process stops.
2. Initiate the collective sale/renewal process
The Secretary should call a meeting for the strata committee to consider a proposal to sell or redevelop the scheme.
3. Form a strata renewal committee
Most owners, more than 50 percent, must agree to go ahead with the proposal. Next, a strata renewal committee is elected to investigate and develop it. The committee can appoint valuers, lawyers, tax experts and other professionals to help.
4. Develop a strata renewal plan
The strata renewal committee develops a strata renewal plan. This will inform the lot owners’ decisions about the sale or redevelopment. The strata renewal committee and the owners corporation can meet to discuss and further develop the plan. The plan must include:
- a general overview of the proposal
- a full and frank statement by the proposed purchaser or developer. This will state how they intend to use the building/s and land
- when owners must vacate their units
- the amount each owner will receive. This must be no less than the compensation value for their unit.
Find out how to prepare a strata renewal plan on the Office of Registrar General website.
5. Consider the plan
The owners corporation elects an independent returning officer to oversee voting on the plan.
The owners must have at least 60 days to consider the plan and seek independent advice. Owners who are in favour must give the independent returning officer a signed support notice. If 75 percent do not support the plan in three months, it expires.
6. Approve the plan
The Land and Environment Court need to approve the strata renewal plan before it can be carried out. Before approving it, the Court would:
- consider if the process has been properly followed
- initially seek to resolve any disputes through conciliation or mediation.
The Court can reject a strata renewal plan if:
- it was not developed in 'good faith', or
- the process has not been properly followed.
If a strata renewal plan lapses, there is a 12 month waiting period before the owners corporation can reconsider the same or another plan.
Advice and advocacy service
Vulnerable groups, for example an aged or disability pension, can use Fair Trading’s free advocacy service.
Who is eligible for the service?
- recipients under the National Disability Insurance Scheme (NDIS)
- other persons with disabilities (not NDIS)
- Aboriginal and/or Torres Strait Islander people
- low income/Centrelink recipients
- persons under Public Guardianship
- persons on a full pension (subject to means testing).
What advice and services are provided to eligible lot owners?
- advice on proposed sale and renewal plan
- alternative housing choices
- advice on their rights, responsibilities and the actions available to them in respect of the collective sale and renewal affecting them
- advocacy services in their dealings with owners corporation, developers and/or other relevant parties
- negotiating on their behalf with the owners corporation, developer and/or relevant party
- assisting in case preparation for NSW Civil and Administrative Tribunal (the Tribunal) and Land and Environment Court (the Court) mentions and hearings
- legal representation at the Tribunal or the Court , where determined to be appropriate
- referrals to relevant authorities
- community education activities.
Who provides the service?
Strata Collective Sale Advocacy Service (General)
Marrickville Legal Centre
338 Illawarra Road, Marrickville NSW 2204
Telephone: (02) 9559 2899
Strata Collective Sale Advocacy Service (Older Persons)
Seniors Rights Service
Level 4, 418A Elizabeth St
Surry Hills 2010
Telephone: 1800 424 079
Services commenced from 30 November 2016.
What if I’m not eligible for the service?
Affected lot owners who are not eligible to access the Service may also contact the Law Society of NSW for assistance to find a specialist legal practitioner. These legal services are at the lot owners expense.
Need more information?
- affected owners and interested parties can call us on 1800 214 023
- contact the Law Society of NSW to find lawyers specialised in property law advice
Visit the Registrar General's website for detailed information, including translated information in Chinese, Korean, Vietnamese and Arabic.