By Paul Vergotis and Katharine Huxley -
Snapshot
- To date, three written judgments have been handed down in relation to Strata Renewal Proceedings in the Land and Environment Court of NSW. Each of these judgments relates to interlocutory matters in applications to the Court for orders effecting strata renewal plans for collective sale.
- The three judgments provide useful guidance on the procedure being adopted by the Court for joinder of parties, costs orders and security for costs, identification of parties and the necessity for position papers in these proceedings.
- Given the increasing demand to accommodate Sydney’s growing population and intensify land use, Strata Renewal Proceedings both for collective sale and redevelopment of strata schemes are expected to become a regular occurrence in the Court.
The Strata Schemes Development Act 2015 (NSW) (‘SSD Act’) provides for the collective sale of strata schemes where a strata renewal plan (‘SRP’) has received the support of at least 75 per cent of the owners in the strata scheme (s 178(1)(b)). If this level of support is received, the Owners Corporation may resolve to apply to the Land and Environment Court (‘the Court’) for orders to give effect to the SRP (‘Strata Renewal Proceedings’). Once such orders are made, the owner of each lot in the strata scheme (including any dissenting owners) must sell their lot in accordance with the SRP and the orders of the Court.
To date, three written judgments have been handed down in relation to Strata Renewal Proceedings: The Owners – Strata Plan 6877 v 2-4 Lachlan Avenue Pty Ltd [2018] NSWLEC 13 (‘Lachlan’), The Owners – Strata Plan 6666 v Kahu Holdings Pty Ltd [2018] NSWLEC 15 (‘Kahu’) and The Owners – Strata Plan 49574 v Scorpio Holdings (Aust) Pty Limited & Ors [2018] NSWLEC 54 (‘Scorpio’).
