The Strata Schemes Management Act Amendments will take effect 30
November 2016. These amendments will affect the many residents of
New South Wales, currently living in a strata dwelling, all Owners
Corporations and Strata Committees as well as developers and
builders who plan on erecting a strata building.
Strata Scheme formed after commencement of
Once the amendments take effect (30 November 2016), 75% of owners
need to agree to the winding up of a strata scheme for the purpose
of selling the building (as opposed to 100% of owners
Strata Scheme formed prior to amendments
For a strata scheme existing prior to the amendments taking effect
(30 November 2016) 50% of owners need to agree to opt into the new
system. Once opted in, 75% of owners then need to agree on the
winding up of a strata scheme. If the new system is not opted into,
100% of the owners need to vote to wind up.
Process of Sale
Once the proposal to sell/develop a strata scheme is offered, a
meeting of all owners is called for the purpose of considering the
Should 50% of owners want to consider the offer, a committee is
elected to examine and explore the proposal. This committee may
appoint experts/specialists, e.g. valuers, lawyers, architects, to
assist in the examination of the offer.
The committee along with the owners corporation will meet
regularly for the purpose of discussing the process and details of
the sale, such as, the amount of money each owner will receive and
costs and liabilities faced by the owners corporation.
Once a final plan is formally served, owners will have a period
of time (minimum 60 days) to obtain independent advice. Should
owners agree to the plan, they are to sign a support notice and
provide the notice to the secretary of the committee.
Should 75% of the owners (or 100%, if the strata scheme has not
opted in) return signed notices, the plan will be approved and
agreements and plans will be drawn up and submitted to the Land and
Environment Court for approval.
The amendments will establish a Strata Renewal Advice Advocacy
Program where owners of lots may seek further information or be
directed to agencies which can assist with any issues or problems
being faced by owners.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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If an owner wants to remove a caveat, issuing a lapsing notice is a quick and easy way to shift the problem to the caveator.
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