The Strata Renewal process can be a complex and often unforgiving area of law for many homeowners, particularly when seeking to ensure they receive a just and equitable price for their property. For only the second time, a strata renewal plan for redevelopment was determined by the NSW Land and Environment Court in The Owners-Strata Plan 934 v T&P Chimes Development Pty Ltd (No 2) [2025] NSWLEC 28.
Maysaa Parrino of Project Lawyers acted for the Owners Corporation in these proceedings, and appeared before Justice Pritchard to successfully secure an order approving the strata renewal plan and achieving a purchase price and terms of settlement for a dissenting lot owner that the Court found to be just and equitable.
The Court was required to determine whether the strata renewal plan satisfied the procedural and substantive requirements of the legislation. Her Honour was satisfied that the plan had been prepared in good faith, and that the developer’s commercial relationships with lot owners had not compromised the integrity of the process. Her Honour noted that, in accordance with section 182(1)(e) of the Strata Schemes Development Act 2015, the Court must be satisfied that the amount payable to a dissenting owner is not less than either the compensation value of the lot or the total consideration that would have accrued had the owner supported the plan.
In this matter, the sole remaining dissenting owner was to be paid an amount greater than the compensation value determined by valuers. Her Honour determined this amount was just and equitable in all the circumstances, based on the consideration paid to a neighbouring lot owner with a similar size and layout.
Furthermore, Her Honour detailed the steps required for a strata renewal plan to be given effect in accordance with sections 156 to 177 of the Strata Schemes Development Act 2015 and clauses 26 to 37 of the Strata Schemes Development Regulation 2016. Her Honour noted that the Owners Corporation had satisfied all legislative requirements.
The redevelopment of a strata scheme may be complex, challenging, and lengthy, but it doesn’t need to be. Whether you’re a homeowner or a developer, having an experienced and proven legal representative guide you through this process is crucial. This is important to ensure you are receiving a just and equitable purchase price or to ensure that you are satisfying the legal requirements so your plan can be given effect by the Court.
Our team at Project Lawyers regularly appears before the Land and Environment Court and are experienced in all aspects of strata renewal. We can assist lot owners (including dissenting owners), owners corporations, and developers in achieving the best outcome, whatever their goals may be.
If you have any queries about the strata renewal process, please do not hesitate to contact us.
The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.
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Author: Maysaa Parrino & Francesca Marino
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