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 amendments
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 currently)

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

  1. Once the proposal to sell/develop a strata scheme is offered, a meeting of all owners is called for the purpose of considering the sale/development offer.
  2. 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.
  3. 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.
  4. 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.
  5. 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.