The Strata Schemes Development Act 2015 (NSW) (SSD Act) allows for a collective sale or redevelopment of a strata scheme to proceed by an order of the Court if at least 75% of lot owners in the scheme support the strata renewal plan.

The Strata renewal process, in brief, involves submitting a Strata Renewal Proposal, that is considered by a Strata Renewal Committee. Then the SRC prepares a Strata Renewal Plan, which is circulated and considered by owners, and finally, once the level of support required is reached, the Owners Corporation meets and the plan is submitted for approval by the Land and Environment Court.

In Application by the Owners – Strata Plan No 61299 [2019] NSWLEC 111, the Land and Environment Court was asked to order that a strata renewal plan be given effect under the SSD Act. The scheme proposed in this case was a collective sale of all lots, as opposed to a redevelopment. The Applicant did not have unanimous support for the proposed collective sale as required by the SSD Act, but the absence of another party (the non-consenting owners) was not an impediment to making the orders because all owners had been served with the Class 3 Application and with the documents required in the lead-up to the commencement of the case. The thorough evidence and submissions of the Applicant demonstrated satisfaction with the prescriptive requirements of the SSD Act.

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