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ARTICLE · 08 SEPTEMBER 2015

Compulsory acquisition of strata title in NSW

This exposure draft of Strata termination legislation could empower private citizens to acquire other people's homes.

AustraliaReal Estate and Construction

We have all seen the movie "The Castle", poking hilarious fun at the Government's powers of compulsory acquisition over your home.

But what if your own neighbour could also compulsory acquire your home?

The New South Wales Government has released an exposure draft of Strata termination legislation which empowers private citizens to forcibly acquire other people's homes.

So long as 75% of owners in the strata plan agree, (some of whom may be investors or developers), the entire site can be collectively sold or re-developed.

Sydney needs more housing and the Government's justification for this proposal is urban renewal and consolidation.

If an apartment building is nearing the end of its life then it might make "some sense" to force one or more reluctant owners to give in and sell their unit so as to enable re-development of the entire building. However, this is not a criteria in the draft legislation. There is no requirement that the building be run down.

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