November 9, 2016 at 2:21 pm #2626AnonymousInactive
Re the collective sale of a strata building. A developer has made an approach to buy a building we manage.
In this building of 12 lots, 4 lots owners don’t wish to accept the offer (for the whole building). Note the 4 lots represent 33% of all lot owners by number of lots, however their units of entitlement only make up 23.5% of the whole strata scheme. Do they have the votes / power to block a collective sale based on the fact their UE is less than the 25% threshold ?
Additionally, two car spaces are owned as separate lots in the same strata scheme. Are the owners of these two car space lots able to vote and influence the collective sale outcome ?
November 9, 2016 at 10:01 pm #2630Amanda FarmerExpert
- This topic was modified 51 years ago by .
Welcome to the Forum and thanks for the great question.
For a collective sale, the new law commencing 30 November provides that 75% of lots must agree. This is strictly a “lot” count, not a calculation based on unit entitlements. So, in the building you manage, the 4 lot owners could block a collective sale because, with their 4 lots objecting, the proposal would only get 66% approval.
Car space lots are not included in the count. That is because car space lots (like storage lots) are considered ‘utility lots’ and they are expressly excluded from the count.
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