What Do I Need to Know About the New Collective Sales Process?
In our video series Michael Vumbaca, General Manager at Jamesons Strata discusses the collective sales process.
One of the more controversial pieces of new legislation is the collective sales process. This piece of new legislation entitles up to 75% of all owners in a building to sell their building to a developer or any other party.
Under the old legislation, you needed to have 100% of votes in favour of this motion before proceeding down this path whilst under the new legislation on a 75% majority is required. To protect the rights and interests of all parties, there is a very specific and set process that applies, which concludes in the Land and Environment Court signing off on the sale. This ensures that all owners are protected when going through this very stressful and long process.
We believe that the collective sale process is a good thing for the industry as there are a lot of dilapidated buildings around New South Wales that simply do not have enough money in their Capital Works funds to sustain them over many years to come. This new process provides them a framework to sell their buildings and potentially make money on the sale of their asset that they might not have had previously. It also means that you can expect to see a further spike in developments in New South Wales over the next 10+ years, as a lot more buildings will go down this path of sale as opposed to spending money on refurbishment and redevelopment.
Jamesons are a family run business that have provided Sydney residents with strata management services for over 50 years. If you would like more information regarding strata management, please contact Jamesons Strata Management on (02) 8969 3400.