Under existing strata laws when a developer offers a full buyout of an apartment building 100% of residents have to agree to the deal. However, the NSW Government is proposing to reduce that threshold to 75% as part of the new reforms to strata title laws. These new changes are to be introduced to State Parliament in October 2015.
This would be a win for developers who believe that it will help increase density in capital cities around Australia. Currently it is difficult for ageing properties to be redeveloped as residents who do not wish to sell can stop the sale.
Victor Dominello, Minister for Innovation and Better Regulation, said that protections would be in place to ensure just terms compensation. However, opposition MP Peter Primrose has countered that the current proposal would see owners evicted from their homes in forced sales, particularly older owners.
In its current incarnation the reform does not have any requirement for developers to only make use of this threshold reduction when redeveloping run-down properties.
