New South Wales Consolidated Acts

STRATA SCHEMES DEVELOPMENT ACT 2015 - SECT 48

48 Procedure for conversion

(1) If--

(a) under the leases of the lots in a leasehold strata scheme, the owners have rights to acquire the lessor's reversion in the lots, or

(b) the lessor otherwise confers on the owners rights to acquire the lessor's reversion in the lots,

the owners corporation may, by special resolution at a meeting convened to determine whether the rights are to be exercised and held before the scheme is terminated under section 148 or otherwise, authorise the conversion of the scheme into a freehold strata scheme.

Note--: Under section 148, a leasehold strata scheme may be terminated if all leases of lots and common property in the scheme expire or are otherwise determined.

(2) The rights referred to in subsection (1) may not be exercised unless a special resolution is passed in accordance with the subsection.

(3) If the special resolution is passed, each owner may exercise the right to acquire from the lessor the reversion in the owner's lot.

(4) Despite section 25, if an owner has not, within 6 weeks after the date of the meeting, acquired the reversion in the owner's lot, the owners corporation may, by unanimous resolution, acquire the reversion in and the lease of the lot.

(5) If the reversion in a lot has not, within 3 months after the date of the meeting, been acquired by the owner of the lot or the owners corporation, the lessor may acquire the lease of the lot.

(6) If there is no outstanding reversion in a lot in the leasehold strata scheme, the lessor must immediately give the Registrar-General notice in the approved form of--

(a) the passing of the special resolution authorising the conversion of the scheme, and

(b) the disposal of the reversionary estates in all lots in the scheme.

(7) If the reversion in any lot has not, within 6 months after the date of the meeting, been disposed of in accordance with this section, the lessor must give the Registrar-General notice in the approved form of--

(a) the passing of the special resolution authorising the conversion of the scheme, and

(b) the disposal of the reversionary estates in the lots the reversion in which has been acquired or the leases of which have been acquired in accordance with this section, and

(c) the identity of each lot the reversion in which, or lease of which, has not been acquired.

(8) A notice required to be given under this section by the lessor may be given by the owners corporation, an owner or another person.