› Flat Chat Strata Forum › The Professionals › Buy-out by an innovative developer. › Current Page
The smart way to do this is for the developer to approach each owner and offer them a provisional deal whereby they say, I will give you, let’s say $20K right now if you agree to sell the apartment to me at such and such an agreed price provided everyone else agrees to sell by a certain date. If the others don’t agree to sell, then you pay me back the money, interest-free.
That way there is a legally binding pathway for the developer, a premium built into the purchase price and a lot of peer pressure on the other owners not to hold out for silly money.
At worst, the developer loses the amount of interest on the ‘loan’ that they would have got had they kept it in their own bank account.
Apparently this is going on right now all over Sydney. A more cynical developer would buy up the majority of apartments in the building then start demanding that expensive building work be done, forcing the other owners to sell. This is also happening around town.
But KP is right, this has nothing to do with extinguishment of strata since, if the developer owns all the units then they can do what they want with the building.