Division 7Orders to
give effect to strata renewal plans
181Hearing of application
(1)
The court must hear and dispose of an application
for an order in proceedings before the court.
(2)
If the court orders mediation or arranges a
conciliation conference in relation to the application—
(a)
the court may terminate the mediation or
conference at any time and hear, or continue to hear, the proceedings,
or
(b)
any party to the mediation or conference may, at
least 90 days after the day the first mediation or conference session starts,
ask the court to terminate the mediation or conference and hear, or continue
to hear, the proceedings, or
(c)
if the parties reach an agreement at mediation or
the conciliation conference and the strata renewal plan is varied under the
agreement—the court may hear, or continue to hear, the proceedings in
relation to the varied plan.
(3)
The court must hear, or continue to hear, the
proceedings whether or not the parties reach an agreement at mediation or a
conciliation conference.
(3A)
Subsection (3) has effect despite section 34 (3)
(a) of the Land and Environment Court Act
1979.
(4)
If a strata renewal plan is varied at mediation
or a conciliation conference, the varied plan is taken to be the strata
renewal plan under this Act.
(5)
However, the court must not make an order in
relation to a strata renewal plan that is varied at mediation or a
conciliation conference unless—
(a)
written agreement to the variation has been given
by the owner of each lot in relation to which a support notice has been given
for the plan, and
(b)
written notice of the variation has been served
by the owners corporation on the following (unless otherwise directed by the
court)—
(i)
each dissenting owner,
(ii)
each person on whom notice of the application
must be served under section 179 (2) (b)–(e).
(6)
Any of the following persons may be joined as a
party to the proceedings—
(a)
a person who has filed an objection to the
application and applies to be a party to the proceedings,
(b)
a person directed by the court to be
joined.
(7)
In this section—
conciliation
conference means a conciliation conference under section 34
of the Land and Environment Court Act
1979.
mediation means mediation
in accordance with the Civil Procedure Act
2005.
s 181: Am 2017 No 44,
Sch 1.23.
182Decision of court
(1)
The court must make an order giving effect to the
strata renewal plan if satisfied of the following matters—
(a)
the relationship, if any, between the owners of
lots and the purchaser or a developer has not prevented the plan being
prepared in good faith,
(b)
the steps taken in preparing the plan and
obtaining the required level of support were carried out in accordance with
this Act,
(c)
all notices required to be served under sections
179 and 181 have been served,
(d)
if the plan is for a collective sale—the
proposed distribution of the proceeds of sale apportioned to each lot is not
less than the compensation value of the lot and the terms of the settlement
under the plan are just and equitable in all the
circumstances,
(e)
if the plan is for a redevelopment—the
amount to be paid to a dissenting owner is not less than whichever of the
following is greater—
(i)
the compensation value of the owner’s
lot,
(ii)
an amount equal to the total consideration that
would accrue to the dissenting owner under the plan in relation to the
redevelopment and the owner’s lot if that owner had given a support
notice for the plan,
(f)
if the plan is for a redevelopment—the
terms of the settlement under the plan, as those terms apply to any dissenting
owner, are just and equitable in all the circumstances,
(g)
any other matter prescribed by the
regulations.
(2)
The court may, on its own initiative, vary the
strata renewal plan and make an order giving effect to the varied plan if
satisfied of the matters referred to in subsection (1).
(3)
However, the court cannot vary a strata renewal
plan under subsection (2) unless—
(a)
the variation is of a minor nature that does not
affect the plan in any substantial way, and
(b)
written agreement to the variation has been given
by the owner of each lot in relation to which a support notice for the plan
has been given.
(4)
The court must not make an order giving effect to
the strata renewal plan if the court is not satisfied about the matters
referred to in subsection (1).
(4A)
The court may be satisfied of the matters
referred to in subsection (1)(b) and (c) despite a defect or irregularity if
the court is satisfied that the defect or irregularity has not caused and is
not likely to cause substantial injustice.
(4B)
In considering an objection to the application
for the order, the court must consider whether the person who filed the
objection did not file the objection in good faith, including because of a
conflict of interest.
(5)
The court must give written reasons for its
decision to make, or not to make, an order.
(6)
This section applies subject to section 181
(5).
s 182: Am 2023 No 45,
Sch 1[7].
183Court order and directions
(1)
If the court makes an order giving effect to a
strata renewal plan for a strata scheme, the order may include directions
about any of the following matters—
(a)
the termination of the scheme, including, for
example, the day on which the scheme is to be terminated and the day on which
vacant possession of lots and common property in the scheme is to be
given,
(b)
the winding up of the owners corporation of the
scheme,
(c)
the discharge of the liabilities of the owners
corporation,
(d)
the persons liable to contribute amounts required
for the discharge of the liabilities of the owners corporation and the
proportionate liability of the persons,
(e)
the distribution of the assets of the owners
corporation and the proportionate entitlement of each person under the
distribution,
(f)
any other matter prescribed by the
regulations.
(2)
The owners corporation must lodge the order for
registration within 7 days after it is made.
(3)
The Registrar-General must record the order on
the folio for the common property and for each lot in the strata
scheme.
(4)
The order has effect under this Part when the
Registrar-General makes the record under subsection (3).
184Effect of order relating to collective
sale
(1)
This section applies if the court makes an order
giving effect to a strata renewal plan for a collective sale of a strata
scheme.
(2)
The owner of each lot in the strata scheme must
sell the owner’s lot in accordance with the strata renewal plan and the
order.
(3)
The strata scheme is terminated on—
(a)
the day on which all the dealings effecting the
transfer of all lots and common property in the scheme are registered,
or
(b)
if the order specifies a later day for that
purpose—the later day.
(4)
On termination of the strata scheme—
(a)
the owners corporation is dissolved,
and
(b)
the rights and liabilities of the owners
corporation vest in the purchaser, unless the order otherwise provides,
and
(c)
any legal proceedings begun by or against the
owners corporation may be completed by or against the purchaser,
and
(d)
the purchaser must give the Registrar-General
notice of the termination in the approved form.
(5)
On receiving the notice, the Registrar-General
must—
(a)
cancel the folios for the lots and common
property in the strata scheme, and
(b)
create a folio for the land in the former parcel,
and
(c)
record in the Register the matters the
Registrar-General considers appropriate to give effect to the
order.
(6)
A lease of a lot in the strata scheme is
terminated on the day stated in the strata renewal plan for giving vacant
possession of the lot to the purchaser or on such later day as may be
specified in the order.
(7)
Subject to this Part, the termination of a lease
under this section does not affect a right or remedy a person may have under
the lease.
Note—
It is expected that leases would generally be
terminated in accordance with the terms of the lease (or under legislation
such as Division 2 of Part 5 of the Residential Tenancies Act
2010) and not under this section.
185Effect of order relating to
redevelopment
(1)
This section applies if the court makes an order
giving effect to a strata renewal plan for a redevelopment of a strata
scheme.
(2)
Each dissenting owner of a lot in the strata
scheme must sell the owner’s lot in accordance with the strata renewal
plan and the order.
(3)
The strata scheme is terminated on the day stated
in the order for that purpose.
(4)
On termination of the strata scheme—
(a)
the owners corporation is dissolved,
and
(b)
the rights and liabilities of the owners
corporation vest in the developer or the former owners in accordance with the
strata renewal plan and the order, and
(c)
land in the former parcel vests in the former
owners as tenants in common in shares proportional to the unit entitlement of
their former lots, unless the strata renewal plan otherwise provides,
and
(d)
any legal proceedings begun by or against the
owners corporation may be completed by or against the developer,
and
(e)
the developer must give the Registrar-General
notice of the termination in the approved form.
(5)
On receiving the notice, the Registrar-General
must—
(a)
cancel the folios for the lots and common
property in the strata scheme, and
(b)
create a folio for the land in the former parcel,
and
(c)
record in the Register the matters the
Registrar-General considers appropriate to give effect to the
order.
(6)
The order does not permit development to be
carried out in contravention of this Act or any other Act or
law.
(7)
A lease of a lot in the strata scheme is
terminated on the day stated in the strata renewal plan for giving vacant
possession of the lot to the developer or on such later day as may be
specified in the order.
(8)
Subject to this Part, the termination of a lease
under this section does not affect a right or remedy a person may have under
the lease.
Note—
It is expected that leases would generally be
terminated in accordance with the terms of the lease (or under legislation
such as Division 2 of Part 5 of the Residential Tenancies Act
2010) and not under this section.
(9)
In this section—
former owner does not
include a dissenting owner.
186Ancillary orders
(1)
The court may make an order to provide for any
ancillary or consequential matter (an ancillary order) that
it considers appropriate or necessary to ensure the effectiveness of the order
giving effect to a strata renewal plan.
(2)
Without limiting subsection (1), an ancillary
order may include directions about the following matters—
(a)
the appointment of a trustee for the sale of an
owner’s lot,
(b)
the vesting of an owner’s lot in the
trustee for the purpose of selling the lot and distributing the proceeds of
sale to the owner,
(c)
(d)
the distribution of the assets of the owners
corporation and the proportionate entitlement of each person under the
distribution,
(e)
the reallocation of unit entitlements among the
lots that are subject to the strata scheme for a reason set out in section 236
(1) of the Strata Schemes Management Act
2015,
(f)
the payment of compensation to a person because
of the termination of a lease under section 184 (6) or 185
(7).
(3)
An ancillary order may be made when or at any
time after the order giving effect to the strata renewal plan is
made.
(4)
An ancillary order may be made on application by
any person with the leave of the court.
s 186: Am 2021 No 10,
Sch 3.21[8].
187Order attaches to land and is binding
An order giving effect to a strata renewal plan
and an ancillary order relating to that order—
(a)
attaches to the parcel for the strata scheme to
which the plan relates, and
(b)
binds the owners corporation of the strata scheme
and each person who for the time being is—
(i)
an owner or registered mortgagee or covenant
chargee of a lot in the parcel, or
(ii)
the purchaser or a developer under the plan,
and
(c)
binds any person claiming through or under or in
trust for or in succession to an owner, or who is a subsequent owner or
occupier to the owner, of a lot in the scheme.