New South Wales Consolidated Acts

STRATA SCHEMES DEVELOPMENT ACT 2015 - SECT 138

138 Effect of order

(1) When a termination order takes effect--

(a) the estate or interest of the former owners in the part of the former parcel that consisted of common property vested in the owners corporation as agent for the former owners vests in the owners corporation as principal, subject only to an estate or interest recorded in--

(i) the folio, or on any registered lease or registered sublease, evidencing the estate or interest of the owners corporation in the common property, or

(ii) the relevant folio created under section 29 (1), and

(b) the estate or interest of each person in the part of the former parcel that did not consist of common property vests in the owners corporation as principal, subject only to an estate or interest recorded in--

(i) the folio evidencing the estate or interest of the owners corporation in the common property comprised in the former parcel, or

(ii) the relevant folio created under section 29 (1),

to the extent the recorded estate or interest was capable of affecting a former lot, and

(c) each person who, immediately before the order took effect, was an owner of a lot in the strata scheme ceases to be an owner of a lot in the scheme, and

(d) each person whose estate or interest is divested by paragraph (b) has instead the rights and liabilities conferred or imposed on the person by the order, and

(e) if the strata scheme is a leasehold strata scheme and the leases or another agreement provide for the payment of compensation for the value of improvements comprised in the parcel--the former lessor under the scheme is liable to pay compensation to each former owner for the value of the improvements comprised in the former parcel that is attributable to the lot leased by the former owner.

(2) Compensation payable under subsection (1) (e) is to be determined in accordance with the formula set out in Schedule 6 or as otherwise agreed by the former lessor and former owner.

(3) A termination order has effect according to its tenor and despite any provision of this Act, other than this Division.