All Topics / Legal & Accounting / In the sale of a unit complex, how is sale price determined for each individual unit and what is the sale process?

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  • Profile photo of Jake TJake T
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    @jake-t
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    July 9, 2008 - 7:57 am

    Hi

    I am contemplating buying a unit within an existing large unit complex in Perth. The complex was built in the 1970's and there is currently speculation that the body corporate may soon be purchased by a developer. Can anyone shed any light regarding:

    the legal process (must >50% of unit owners agree to the sale?); and
    determination of the total sale price allocated to each individual unit (or is a price negotiated with individual unit owners?)

    Any information or reference points would be appreciated. I have looked at the WA Strata Titles Act 1985 and have not learnt much.

    Regards

    Jake

    Profile photo of Jon ChownJon Chown
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    @jon-chown
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    July 9, 2008 - 10:20 am

    Hi Jake,   Not sure about WA but in QLD this type of decision would have to be unanimous. (I have personally seen an instance where the purchase fell through due to one old lady saying that there was nothing in it for her)   I would be surprised if the Developer would let this rumor out in the public domain as it would affect their negotiation power.   Each person is able to ask their own price as different units in the same block (even with the same floor plan) can be worth different amounts.

    Has the Developer purchased any units in the block to date?   Is the Developer contemplating a refurbishment  of the existing Building or a complete new development?

    Jon

    Profile photo of Scott No MatesScott No Mates
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    July 10, 2008 - 11:13 am

    Likewise in NSW Jake, a unanimous decision to sell must be made (there was some recent talk of reducing this to 75% of the owners).

    If there is a lower threshold, then engage a valuer on your behalf, brief them on the purpose (it may be a dual purpose eg market value and sale for redevelopment/highest and best use {of the block} or the like).

    Profile photo of Jake TJake T
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    @jake-t
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    July 12, 2008 - 10:22 am

    Jon and Scott,

    Thanks for answering my question and providing additional comments. Your comments are interesting and provide further direction for my investgation. 

    I am not sure whether the Developer has actually purchased any of the units to date. Given the age and condition of the existing building complex, and that a large area of the site is currently occupied by lawn and garden area, it would most likely be a completely new development. 

    Regards

    Jake

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