My first thought is that the people with the disproportionately lower unit entitlements have been getting a free ride for a long time by having UEs that had been set at artificially low levels (a common practice to attract buyers to larger units). They’ve had their cake and now they want to eat it.
If I were you, I would be suggesting that you look at what the UEs should have been (you can get a surveyor or just agree on a figure). Then take an arbitrary date – let’s say when the the person who has owned there for the longest bought in – and recalculate what the levies should have been. The difference is what the S2 owners owe the G7. Then recalculate the proportion of the purchase amounts, give the G7 what they are owed and all is fair(-ish). Otherwise, tell them that the G7 plan to sell and they can deal with the new owner.
And to answer your questions (bearing in mind that the law hasn’t been passed yet):
1. Would they (G7 owners) find developers (or buyers) NOW willing to buy just 7 out of 9 properties – for FUTURE development?
Absolutely – it’s already happening. If developers think they can get council approval to eventually build something that will make a profit, they’ll be all over it.
2. If these 75%-owners become 75%-developer (once propreties acquired by the developer), would the develper be allowed to force the 25%-owners to sell – in the same way as the 75%-owners?
Yes, especially on the numbers you have provided. The one fly in the ointment may be at all “collective sale” agreements will have to be approved by the Land and Environment Court and that’s where the other owners might be able to force an adjustment to the sale price – but they will have to hire some heavy hitting lawyers to do so.
3. If the G7 owners sold at a developement premium, would the ‘market prices’ then be the prices-with-the-developement-premium or just the market-going-prices at the current market? (with the new proposed law, the 25% owners could be forced to sell their properties at the ‘market prices’ plus moving costs)
Market prices only come into play in a redevelopment scheme (the block will be renovated substantially, with the possible addition of new apartments, but the original owners have the option to move back in). When the block is going to be bulldozed and replaced, it’s done on UEs as a share of the overall sale price negotiated with the developer. Obviously, the developer is going to try to push the price down so, once again the S2 will be looking at hiring lawyers to plead their case at the L&E Court. There are enough protections there to stop the minority being screwed financially but those same protections will prevent them from exploiting the situation.
Again, if all you are quibbling over is who gets how much of what, talk to a mediator about reaching a consensus. By all means get a couple of offers from developers and then you will at least be dealing with real figures rather than pie in the sky.