Strata Renewal in NSW: How Owners Corporations Can Navigate Collective Sales and Major Redevelopments
Considering a collective sale or major renewal of your strata building in New South Wales? You’re not alone and the decisions you’ll make can shape the property journey for every owner involved. Let’s unpack the real-world options, the legal steps, and the practical wisdom that puts owners corporations on the front foot in today’s market.
Big Choices: 100% Agreement or a 75% Pathway?
NSW’s strata game changed dramatically with reforms to the Strata Schemes Development Act 2015. Gone are the days when every single owner had to agree for a building to be sold or collectively redeveloped. Now, if at least 75% of your fellow owners are on board (and the Court gives the green light), it’s possible to make big moves—even if a handful are unsure or holding out.
But here’s the kicker: despite the new pathway, almost all successful collective sales still happen the old-fashioned way through 100% voluntary agreement. Why? Unanimous deals are quicker, offer more flexibility, and reduce the drama. In fact, since the 75% route became law, only a single building—yes, just one—has actually sealed the deal through Court order.
The 75% Strata Renewal Process: What’s Really Involved?
For some, the majority-wins model is the needed breakthrough, especially when consensus seems impossible. But the process isn’t simple:
Anyone (owner, developer, or interested buyer) can pitch a renewal idea.
The owners corporation has first choice to review and kick off a renewal committee.
Expect to call in two independent valuers and put together a detailed plan that clearly sets out the deal for every owner.
Every owner is handed a detailed explainer and support forms—no rushed decisions here.
If three-quarters of lots sign on, the plan goes before the Land and Environment Court for fairness checks and a final call.
It’s thorough, transparent, and designed to protect everyone—but it’s also public, legalistic, and can get contentious if there are strong views on either side.
Lessons From the Trenches: What Works for Owners Corporations?
After guiding numerous owners corporations, here are some hard-won tips from the real world:
Get Specialist Legal Advice Early: Strata renewal law is a maze. Running afoul of the rules can tank a promising project at the last minute.
Don’t Underestimate Consensus: Even if 75% seems within reach, working towards 100% keeps things friendly, fetches stronger prices, and gets deals done on your terms.
Communicate, Communicate, Communicate: Transparent updates and regular meetings stop rumours and keep owners engaged and invested in the outcome.
Strong Contracts Matter: Make sure any sale or redevelopment agreement is watertight—particularly that no owner (or developer) is left with an unsellable lot.
Anticipate and Respect Dissenter Rights: At every step, build in extra scrutiny and empathy for those who aren’t keen (yet). The system is built to keep things fair and equitable for all, not just the majority.
Trends and Takeaways
With so many ageing buildings and so much market activity, it’s no surprise renewal is top of mind for many committees. But NSW’s laws, while innovative, set a high bar around transparency, fairness, and procedural rigour. That’s actually a strength—when followed with expert advice, it means outcomes stand up to scrutiny, and all owners (majority or minority) know their rights are respected.
Final Word
Strata renewal isn’t a one-size-fits-all decision. Some communities can reach unanimous agreement and sail through negotiations; others need the structure of the 75% route. Whatever path your scheme considers, the most successful projects share this in common: strong leadership, specialist input, and owners who understand both the risks and rewards.
Expert legal guidance makes the difference—helping you avoid pitfalls, secure market-leading deals, and build consensus that lasts well beyond settlement day.
Jessica Rippon is the Founder & Director of Construction Legal
Jessica has over 22 years in the property and construction industries and founded Construction Legal, a multi award winning firm, in 2018. Jessica has acted for a broad range of clients across both the government and private sectors, including NSW Building Commission, NBN Co, Deicorp, JQZ, Castle Group, Poly Global, Winten Property Group, Downer EDI and Growthbuilt.
Her passion is to drive change in the NSW residential building sector by championing better regulation and quality construction.
Disclaimer:
This article is intended for general educational purposes only and does not constitute legal or financial advice. Readers should seek independent legal and professional guidance relevant to their specific circumstances and jurisdiction.