Emil Ford Lawyers

Time to renew or sell your unit block?

 Changes to NSW strata legislation mean that developers no longer have to obtain a 100% majority of the owners to collapse a strata scheme and redevelop. Now, a developer only requires owners of at least 75% of lots in the scheme to agree to the redevelopment, but a plan to redevelop or sell must be approved by the Land and Environment Court of NSW.

If there is owner interest in redevelopment of the property, any person may put together a proposal. This proposal must be considered by the strata committee. If a 50% majority of owners agree to the proposal, the Owners Corporation elect a ‘Strata Renewal Committee’ to consider the redevelopment. The committee’s main job is to develop a Strata Renewal Plan. The legislation prescribes a number of legal and technical requirements that must be contained in the plan. The Committee may also engage professionals (such as lawyers and property valuers) to assist in the preparation of the plan.

If a 75% majority is obtained, the Strata Renewal Plan can be taken to the Land and Environment Court after a general meeting of the Owners Corporation. The Land and Environmental Court will consider the plan and must give its approval to the plan before redevelopment can go ahead.

All parties to this process should ensure they have legal representation to navigate through the mandatory steps created by these legislative requirements. For assistance with strata redevelopment or other strata management issues, please contact  or  for more information.

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