Strata Renewal NSW: What Unit Owners Need to Know Before a Collective Sale
- Jackie Atchison
- Apr 20
- 3 min read
Intro
You’ve owned your unit for years. Now the developer next door is knocking—or maybe your owners corporation is talking about renovating the whole block. Sound familiar?
This post breaks down how the NSW strata renewal process works, what owners need to know before voting, and how to make sure you're legally protected before signing anything.
Why It Matters
The NSW strata renewal scheme allows a building to be sold or substantially redeveloped—even if not all owners agree. It can be a big opportunity—but it also carries risks.
Owners can feel pressured to vote yes or sign documents without fully understanding the financial and legal consequences. Miss a key step, and you could be locked into a deal that doesn’t work for you—or worse, challenged for holding things up unfairly.
What You Need to Know
How the NSW Strata Renewal Process Works (Under the 75% Rule)
Under Part 10 of the Strata Schemes Development Act 2015, a strata scheme can be collectively sold or redeveloped if 75% of owners (by unit entitlement) agree. The process is formal and legally binding, and it typically involves:
A proposal submitted to the owners corporation
A committee to consider the proposal
Preparation of a strata renewal plan
An independent valuation
Owner approvals (75% support needed)
An application to the Land and Environment Court for final orders
The renewal doesn’t have to be a developer-led sale. The owners corporation may also propose a scheme to carry out substantial renovations or redevelop the site collectively.
You can’t simply opt out once the plan is approved—unless your concerns are raised in time and properly considered.
Key Risks for Owners
Being under-compensated if you don’t understand the valuation process
Losing control of the timing of your exit or relocation
Agreeing too early without proper legal advice or negotiating leverage
Being misled by informal meetings or off-the-record developer contact
There’s also reputational pressure—no one wants to be the “difficult” one holding up a deal. But your legal rights matter.
Commercial Insight
Sometimes, collective sale offers are below market value when compared to individual sales or redevelopment potential. On the flip side, staying put may mean higher strata levies and declining infrastructure.
You need to assess not just the price—but also the structure, timeline, tax consequences, and your future plans. A well-advised holdout can negotiate significant uplifts—or secure terms that suit them better.
One smart option? You may be able to negotiate the right to purchase a unit in the new development as part of the deal—giving you continuity and a potential value uplift.
| Risk: Once 75% of owners agree, minority owners may be forced to sell. Don’t wait until then to get advice—it may be too late to influence the deal.
What to Do Next
Ask to see the full strata renewal plan—not just a summary
Check if the proposal has been independently valued
Review any draft agreements with a strata-savvy lawyer
Don’t feel rushed—ask questions and insist on clear timelines
If you’re not sure what’s fair, or you want to push for better terms, legal support can help you protect your position without slowing things down unnecessarily.
Closing Wrap
Strata renewal can unlock real value—but it’s not risk-free. I help unit owners understand their options, assess the deal, and negotiate from a position of strength. If your building is considering a collective sale or major redevelopment, now’s the time to get advice—before the 75% threshold is reached.
