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Posted 04 February 2019
Category: Strata, Urban Renewal
The level of interest in the strata renewal of existing strata schemes continues to increase despite a fall in property values in the Sydney market. This interest is either from lot owners working collaboratively together to find a buyer, where owners are achieving inflated prices for their units selling collectively rather than individually, or, when a developer may approach an owners corporation with an offer to purchase the whole site. This is particularly evident in areas which have been re-zoned or where blocks are underdeveloped within existing planning regulations.
When 100% support for a sale is not achieved, a sale is still possible as a result of the strata renewal legislation commenced on 30 November 2016 pursuant to Part 10 of the Strata Schemes Development Act 2015 (Part 10) if owners holding more than 75% of lots and unit entitlements are in support of the sale.
Some important tips for owners corporations in manoeuvring the Part 10 maze are:
***The information contained in this article is general information only and not legal advice. The currency, accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.