The strata renewal process can feel overwhelming, owners may feel bullied into having to accept an offer from a developer coupled with high pressured tactics to get owners to think that if they do not agree that they can make them liable for costs including Court costs. That is not the case and you are entitled to get legal advice including to fight the outcome provided you act in good faith. Our role as experienced lawyers in this field is to ensure that you do act in good faith and by following our advice we are confident that we can get you an outcome whereby you are able to stand up for your rights and recover the fair value bearing in mind you will be loosing a valuable property. The law requires every step to be followed carefully, and when it reaches the Court, outcomes can have long-lasting financial impacts so sitting back and ignoring the Court process is not a good option.

Recently, in one of only two cases of its kind, the NSW Land and Environment Court approved a strata renewal plan for redevelopment after carefully reviewing whether all requirements had been met. Although an order for costs was made against a dissenting owner it was because there had been circumstances where the owners conduct cost significantly extra costs that were totally unnecessary. Most cases do not end this way.

Part of our role for dissenting owners is in rreparing a valuation report for dissenting owners based on our own independent town planning advice on the highest and best use of the site. In most strata renewal matters, there will be a difference in opinion on what the total valuation is. We can negotiate a better outcome for you or test the offer in Court.

For some owners who are investors, the Strata renewal may put them as a high disadvantage to owner occupiers as they may not be eligible to get the costs associated with a replacement property when deductions are made for capital gains tax and stamp duty on a replacement property, so the offer may not be as good as what it seems. Also offers may be made an Option deals, which are not the same as a sale and are worth less yet owners do not always appreciate this. Always get specialist advice in this complex area of law. We ensure that we protect owners as well by giving advice that falls within the requirements of acting in good faith. This protects your position on recovering costs which you are presumed to be entitled to under the Act.

When reviewing the plan, the Court looked closely at whether:

1. The process had been carried out properly and in good faith.
2. The developer’s relationships with owners affected the fairness of the outcome.
3. The amount offered to the dissenting owner was at least equal to (and in this case, greater than) the property’s assessed compensation value.
4. Is the outcome just and equitable – something that is yet to be properly tested.