Collective sales in strata schemes: Are they effective?

In most Australian jurisdictions, all members of an owners corporation or body corporate must unanimously agree to sell their lots in order to enter into a collective sale agreement or to terminate their scheme.

NSW takes a different approach. In 2016, the NSW Government reformed the Strata Schemes Development Act 2015 (NSW) (SSDA), requiring that only 75 per cent of owners and an order from the Land and Environment Court (LEC) could facilitate a collective sale or redevelopment. Although controversial, the reforms sought to address the issue of ageing strata buildings and the escalating housing crisis by lowering the consent threshold.

The only other jurisdiction in Australia which currently allows a strata plan to be terminated by a majority is the Northern Territory which allows a termination if a 'required percentage', varying from 80 per cent to 95 per cent depending on the age of the building, is achieved.