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  • #10538

    I live in a strata unit of 27. About 9 years ago we were approached to sell to an unknown developer with the option of cash or back into completed apartment 4 levels down. It was unanimously rejected. 

    Over the last 4 years we discovered the developers were our local RSL. They have bought all the houses around our building and even the side street allowing us access to our car park. 

    Slowing the RSL is forcing our hand so with the new 75% rule coming in we are concern. The RSL is on the EC and has the majority of votes rejecting all necessary maintenance requests. 

    The RSL owns 7, an unknown company owns 7 that may be related to the RSL. We have limited owners who cares or turns up at AGMs. 

    My question is, do I just start looking to buy elsewhere as eventually I will be force to sell? I’m happy where I am and have no interest in moving or getting interesting more debt but I want peace. I know the RSL will build and it will be noisy and crowed and access to our own building will be difficult and there’s so much uncertainty. 

    Do I sit and wait?

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  • #25119

    In order to even consider a proposal by the RSL or by anyone else your Owners Corporation (O/C) will first need to resolve to do so by way of a majority vote at a General Meeting, and to then elect a Committee separate from the Executive Committee to examine the pros and cons of all possible scenarios and to receive written comments from Owners such as you, which the Committee must report back on to the O/C at every stage of that examination over a timeframe of up to 2 years.

    Once the Committee’s final report is ready it must be considered at another General Meeting to resolve IF the O/C, after considering all possible scenarios and Owners’ written comments still wants to proceed, and IF it does, then it has up to 12 months to obtain properly executed documents of support from at least 75% of Owners (which seems to be the only component of this convoluted process that is reported upon in the media), where if there’s less than 75% in favour (or more than 25% against) then the whole process comes to an end.

    Conversely, if at least 75% of Owners do provide the Committee with written documents in support of the RSL’s proposal within the 12 months allowed, then there’s yet another General Meeting where a special resolution (≥75% in favour by unit entitlement) needs to be passed in order for the agreement to be ratified.

    Then that agreement must to be presented to the NSW Land & Environment Court, where any dissenting Owners can again put their case, before a final decision is made by a Commissioner.

    You may be additionally comforted by the fact that the new NSW Strata Legislation that is planned for introduction in November 2016 will limit the numbers of proxies that an RSL representative can hold to 5% of the total Lots in your Scheme (i.e. just one proxy), and by the fact that in order for the mandated special resolution to pass (ref: para. 3 above), the RSL and the possibly related Owners combined would still require the support of around six (6) additional Owners.

    So with three (3) mandated General Meetings over a 2 year period where at each Meeting Owners such as you can put forward your points of view, and a further opportunity to do so before the NSW Land & Environment Court, I suggest that you seek the support of like-minded Owners and then just sit back, only whilst waiting for the process to commence, and then get involved!


    Apart from all of the above, you and any other neighbours whoi don’t want to be bullied out of the building should probably examine  taking a case to NCAT bor either or both of the options open to you to protect your interest.

    The simplest would be a simple Section 138 motion to force the Owners Corp to maintain and repair the building.  As a precursor to that, you could send a letter to the EC and strata manager with a list of repairs etc that you think should be attended to.

    Second, you should consider applying for the statutory appointment of a strata manager on the grounds that the best interests of all owners are not being pursued, specifically, the building is being run down so the RSL can buy it at a knock-sown price. 

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