We have covered building bonds and a few other changes in the NSW strata reform, but there are still plenty of issues left to go over. One of the big ones for owners of strata property in NSW is adjustments to collective sale and renewal legislation – what might you have missed?
The changes in detail
At the moment, if a strata scheme was to be terminated, it would require the support of every owner in the development. NSW Fair Trading says that under the new law, the threshold for termination of a scheme is reduced to 75 per cent.
“By establishing a process for collective renewal and sale, lot owners will be empowered to realise the full potential of their strata building and make their own decisions in a democratic and transparent way,” reads NSW Fair Trading’s update on the legislation.
There are several steps to the process:
- Existing owners corporations have to opt in for this change – if 50 per cent of more don’t want it, it won’t happen.
- Any sale proposal has to be considered by the executive committee and at a general meeting.
- If 50 per cent or more agree to the proposal, a strata committee is formed to “investigate and develop” it.
- Costs, liabilities, how much each owner would get in a collective sale, proposed dates, and developer plans for the future must all be identified and addressed.
- If 75 per cent of owners do not agree within 12 months of the proposal being put forward, it will not go ahead.
This is, of course, a brief overview of the changes to the collective sale and renewal process, and the Land and Environment Court gets the final say in the proposal. If you want to find out more, feel free to get in touch with the team at Civium Strata.