Part 12 Termination of strata titles scheme

(1) A strata titles scheme terminates (as set out in Division 6) as follows —

(a) a leasehold scheme terminates on the expiry day for the scheme as referred to in Division 2;

(b) a leasehold or freehold scheme terminates —

(i) if there is a termination proposal and the process referred to in Division 3 is followed; or

(ii) if all lots in the scheme are owned by the same person and the process referred to in Division 4 is followed.

(2) Divisions 5 and 6 contain provisions relevant to the forms of termination of a strata titles scheme set out in Divisions 2, 3 and 4.

(3) A strata titles scheme also terminates as set out in Division 7 on the taking under the Land Administration Act 1997 of all of the lots in a strata titles scheme and, for a leasehold scheme, the reversionary interest of the owner of the leasehold scheme.

(1) The owner of a leasehold scheme must, at least 1 month before the expiry of the scheme, lodge with the Registrar of Titles notice, in the approved form, of the impending expiry of the leasehold scheme.

(2) If the owner of a leasehold scheme fails to give the necessary notice, it may be given by an owner of a lot in the scheme and the owner may recover the cost of doing so as a debt in a court of competent jurisdiction from the owner of the leasehold scheme.

Note for this section:

Expiry of a leasehold scheme does not require an approval of a subdivision of land as the expiry is approved as part of the process of initial subdivision by the scheme.

The termination of a strata titles scheme may be proposed by a person (the proponent) who is —

(a) the owner of a lot in the strata titles scheme; or

(b) a person who has a contractual right to purchase a lot in the strata titles scheme; or

(c) a body corporate formed by 2 or more such persons.

(1) The proponent of a proposal to terminate a strata titles scheme (a termination proposal) must submit an outline of the proposal to —

(a) the strata company for the scheme; and

(b) if it is a leasehold scheme, the owner of the leasehold scheme.

(2) However, an outline of a termination proposal cannot be submitted to a strata company or owner of a leasehold scheme —

(a) during any period commencing when an ordinary resolution has been passed by the strata company in support of an outline of another termination proposal and ending when that proposal cannot proceed further under this Division; or

(b) during any period (not exceeding 12 months) for which the strata company has, by ordinary resolution, prohibited termination proposals being submitted to it; or

(c) during any period for which the Tribunal has, on application by the strata company or the owner of the leasehold scheme, prohibited termination proposals being submitted.

(3) A strata company to which an outline of a termination proposal is submitted in accordance with this section must, within 14 days after being given the proposal —

(a) serve it on each person who is —

(i) the owner of a lot in the strata titles scheme; or

(ii) a registered mortgagee of a lot in the strata titles scheme;

and

(b) lodge with the Registrar of Titles notice of receipt of the outline in the approved form.

(4) The strata company must, on completion of the requirements under subsection (3), give written notice of that fact to the proponent of the termination proposal.

(5) Any modification of an outline of a termination proposal proposed by the proponent of the proposal must be submitted and served in the same manner as for the outline.

(1) An outline of a termination proposal must —

(a) specify the name and address for service of the proponent of the proposal; and

(b) identify the strata titles scheme proposed to be terminated; and

(c) provide an explanation of the reasons for proposing termination of the strata titles scheme, including (without limitation), if the difficulty of raising sufficient contributions for repair of scheme buildings or infrastructure on common property is a reason for the proposal, a statement of that reason; and

(d) describe, in general terms, any proposals for contracts to be offered to owners of lots in the strata titles scheme; and

(e) describe, in general terms, what is proposed in terms of subdivision and development of the land following termination of the strata titles scheme; and

(f) describe the planning approvals required for the proposal described under paragraph (e) and the extent to which the proposal does not comply with a relevant planning scheme or interim development order in force under the Planning and Development Act 2005; and

(g) indicate, in general terms, the stages and timeframes for progress of the proposal if it proceeds; and

(h) provide an explanation, in the approved form, of the process for, and consequences of, termination of a strata titles scheme under this Division; and

(i) provide, in accordance with the regulations, details of proposed arrangements for obtaining independent advice or representation referred to in section 190; and

(j) include any other information required by the regulations.

(2) This section does not limit the matters that can be included in an outline of a termination proposal.

(3) An outline of a termination proposal must be in the approved form.

(1) A termination proposal can only proceed further if, within 3 months after an outline of the proposal has been submitted as required under section 174 —

(a) for a freehold scheme — the strata company passes an ordinary resolution supporting consideration of a full proposal; and

(b) for a leasehold scheme —

(i) the owner of the leasehold scheme gives written notice to the strata company supporting consideration of a full proposal; and

(ii) the strata company passes an ordinary resolution supporting consideration of a full proposal.

(2) For a 2-lot scheme, an ordinary resolution is taken to be passed supporting consideration of a full proposal if the vote attached to 1 of the lots is cast in favour of the resolution (regardless of the unit entitlement of the lot).

(1) If the requirements of section 176 are met and a termination proposal can proceed further —

(a) the proponent of the proposal can then make an application under the Planning and Development Act 2005 Part 10 for approval of a plan of subdivision for the proposal (that is, for the parcel to cease being subdivided by a strata titles scheme); and

(b) the owner of the land is taken to have consented to the proponent making the application under the Planning and Development Act 2005.

(2) The Planning and Development Act 2005 applies to the application subject to —

(a) the modification that a reference to subdivision is to be read as including a reference to termination of a strata titles scheme; and

(b) any other appropriate modifications.

(1) If approval of a plan of subdivision is obtained as referred to in section 177, the proponent of the proposal can then submit a full proposal for the termination of the strata titles scheme to —

(a) the strata company for the scheme; and

(b) if it is a leasehold scheme, the owner of the leasehold scheme.

(2) However, a full proposal cannot be submitted to a strata company or owner of a leasehold scheme —

(a) if it is more than 12 months since the requirements of section 176 were met for the proposal; or

(b) during any period for which the Tribunal has, on application by the strata company or the owner of the leasehold scheme, prohibited termination proposals being so submitted.

(3) For a leasehold scheme, the proponent must give written notice to the owner of the leasehold scheme of the date on which the proponent submitted the full proposal to the strata company.

(4) A strata company to which a full proposal is submitted in accordance with this section must, within 14 days after being given the proposal —

(a) serve it on each person who is —

(i) the owner, occupier, registered mortgagee or caveator of a lot in the strata titles scheme; or

(ii) a person whose interest in a lot in the strata titles scheme as a lessee, tenant or mortgagee is recorded in the roll kept by the strata company; or

(iii) the occupier of common property in the strata titles scheme;

and

(b) lodge with the Registrar of Titles notice of receipt of the proposal in the approved form.

(5) Any modification of the full proposal proposed by the proponent must be submitted and served in the same manner as for the full proposal.

(6) However, a modification cannot be submitted within 14 days before voting on the termination proposal opens.

(1) In this section —

independent advocate means a person to whom a full proposal is referred under subsection (2).

(2) A strata company to which a full proposal is submitted under section 178 must refer the proposal for review and assessment to a person who —

(a) is independent of the strata company and the proponent of the termination proposal; and

(b) satisfies any requirements of the regulations regarding experience or qualifications.

(3) The independent advocate must, in accordance with the regulations —

(a) review the full proposal; and

(b) provide the strata company with an independent assessment of the full proposal; and

(c) at a time and place arranged with the strata company, make a presentation of its assessment open to the persons mentioned in section 178(4)(a), conducted so as to take account of the needs of any of those persons who have sensory or mobility disabilities.

(4) The independent advocate must —

(a) endeavour to identify any owners of lots for whom arrangements for fuller or more extensive advice or representation are to be made under regulations made under section 190(1)(b); and

(b) advise those owners of their entitlements under regulations made under section 190; and

(c) if requested by those owners, refer them to independent providers of the advice or representation which they are to obtain; and

(d) if requested by those owners, assist them in obtaining benefits under the trust referred to in section 190(2).

(5) In any proceedings before the Tribunal under Part 13 in which there is a dispute about whether an owner of a lot in the strata titles scheme is entitled to fuller or more extensive advice or representation under regulations made under section 190(1)(b) or is entitled to benefit under a trust referred to in section 190(2), the independent advocate may represent the owner in the proceedings.

(6) The regulations may prescribe how a person’s independence is to be determined for the purposes of subsection (2)(a).

(7) The strata company —

(a) must pay the remuneration of, and reimburse the expenses incurred by, the independent advocate; and

(b) may charge fees under section 189 to cover the cost of paying those fees and reimbursing those expenses.

(1) A full proposal for the termination of a strata titles scheme must —

(a) include the material required to be included in an outline of a termination proposal; and

(b) be accompanied by the approved plan of subdivision for the proposal; and

(c) describe, in detail, what is proposed in terms of contracts to be offered to owners of lots, including —

(i) contracts for the sale and purchase of lots before termination of the strata titles scheme, including —

(I) the name and address of any buyer; and

(II) the purchase price or a description of how the purchase price is to be determined; and

(III) the terms and conditions of the contracts for sale and purchase, including proposed settlement dates, or a description of how those terms and conditions are to be determined; and

(IV) any deductions proposed to be made out of the purchase price or a description of how those deductions are to be determined;

and

(ii) contracts under which the owner of a lot acquires an interest in land in exchange for the lot, including —

(I) the choices available to owners or the basis for determining those choices; and

(II) the interests in land proposed to be acquired by the owners; and

(III) other terms and conditions of the exchange;

and

(iii) contracts under which the owner of a lot is to have an interest in the land on termination of the strata titles scheme or is to have a right or option for the acquisition of an interest in the land following its subdivision or development;

and

(d) describe, in detail, what is proposed to happen on termination of the strata titles scheme in terms of the discharge, withdrawal, removal or bringing forward of registered mortgages over the lots and other estates and interests in a lot or common property in the scheme that are registered or recorded in the Register; and

(e) describe, in detail, what is proposed to happen on termination of the strata titles scheme in terms of the contractual rights of occupiers of lots or common property in the scheme; and

(f) describe, in detail, what is proposed in terms of subdivision and development of the land following termination, including —

(i) plans for demolition; and

(ii) plans for subdivision; and

(iii) architectural plans for development;

and

(g) describe the planning approvals required for the proposal described under paragraph (f) and the extent to which the proposal does not comply with a relevant planning scheme or interim development order in force under the Planning and Development Act 2005; and

(h) indicate, in detail, the stages and timeframes proposed for progress of the proposal if it proceeds, including expectations for when vacant possession of lots and common property will be required; and

(i) describe any proposals for the temporary relocation of owners of lots, including any payments proposed to be made to owners to enable them to arrange temporary relocation; and

(j) include a statement obtained from the strata company of —

(i) its current assets and liabilities; and

(ii) any legal proceedings or pending legal proceedings to which the strata company is or proposes to become a party;

and

(k) specify the steps that will be taken to wind up the strata company, including for the realisation of assets and the discharge or transfer of liabilities for termination of the scheme; and

(l) any other information required by the regulations.

(2) A full proposal must incorporate a report (a termination infrastructure report) comprised of —

(a) a report of a structural engineer on the state and condition of each scheme building and the infrastructure on the common property in the strata titles scheme; and

(b) a report of a person of a class specified in the regulations on the scope of works reasonably required to repair or replace the scheme buildings or infrastructure taking into account the report of the structural engineer; and

(c) a report of a quantity surveyor estimating the cost of the works identified in the report under paragraph (b).

(3) A full proposal must incorporate a report (a termination valuation report) prepared and certified by a licensed valuer setting out a valuation of the market value of each lot in the strata titles scheme.

(4) The regulations must prescribe matters relating to the determination of the market value of a lot for a termination valuation report, including a valuation methodology that takes account of —

(a) relevant recent sales history; and

(b) the highest and best use of the lot; and

(c) the value attributable to the owner’s interest in the common property of the strata titles scheme.

(5) The valuation must be current as at a date that is not more than 21 days (or, if some other period is specified in the regulations, that period) before submission of the full proposal to the strata company.

(6) A person must, in preparing or certifying a termination infrastructure report or termination valuation report, comply with the requirements of the regulations.

(7) This section does not limit the matters that can be included in a full proposal.

(8) The terms of a termination proposal set out in the full proposal are in substitution for the terms set out in the outline of the termination proposal.

(9) A full proposal, including the termination infrastructure report and the termination valuation report must be in the approved form.

(1) A termination proposal for a leasehold scheme cannot proceed further unless, within 3 months after the full proposal is submitted to the strata company, the owner of the leasehold scheme gives written notice to the strata company that the owner supports the termination proposal.

(2) A strata company must, as soon as reasonably practicable, give written notice to the proponent of the termination proposal of the receipt of a notice under subsection (1).

(1) After receipt of a full proposal, 1 or more general meetings of the strata company must be convened to consider the termination proposal (unless it is a proposal that cannot proceed further).

(2) The members of the strata company present at a meeting may, by ordinary resolution (for which notice is not required), require the proponent of the termination proposal to leave the meeting while the proposal is discussed or, if the proponent is not a member of the strata company, to be absent for the whole of the meeting.

(3) The persons on whom a full proposal for the termination of a strata titles scheme must be served by the strata company for the scheme must be given a reasonable opportunity to make submissions to the proponent of the proposal and the strata company.

(4) The council of the strata company may —

(a) discuss a termination proposal with the proponent; and

(b) inform the owners of lots in the strata titles scheme of those discussions and of any clarifications or additional information provided by the proponent; and

(c) make recommendations to the owners of the lots in the strata titles scheme regarding the proposal.

(5) The regulations may impose additional requirements about the process required for consideration of a termination proposal.

(1) A termination proposal must be put to the vote of the owners of the lots in the strata titles scheme (unless it is a proposal that cannot proceed further) and it can only proceed further if a termination resolution is passed.

Note for this subsection:

The terms of the termination proposal are as set out in the full proposal rather than the outline: see section 179(8).

(2) A termination resolution is only effective if the voting period opens at least 2 months after, and closes not more than 6 months after, the service of the full proposal by the strata company under this Division.

(3) A termination proposal may be modified and a further vote taken on the proposal, but no more than 3 such votes may be taken and each vote must be taken within the period referred to in subsection (2).

(4) A person who is independent of the strata company and the proponent of the termination proposal must be appointed to tally and count the votes on the proposal.

(5) The vote must be taken as follows —

(a) 1 vote may be cast for each lot in the strata titles scheme;

(b) the value of each vote is 1.

(6) A termination resolution is passed if the number of votes cast in favour of the termination proposal equals the number of lots in the strata titles scheme.

(7) A termination resolution is passed subject to the confirmation of the Tribunal if —

(a) the strata titles scheme has 5 or more lots; and

(b) the number of votes cast in favour of the termination proposal is at least 80% of the total number of lots in the scheme.

(8) Section 126(a) does not apply to voting on a termination resolution.

(9) A termination proposal must not be modified in a material particular by the proponent of the proposal after a termination resolution has been passed unless the modification is supported under the same voting arrangements as apply to the termination resolution.

(10) The independent person appointed to tally and count the votes must —

(a) make a record of each vote identifying the lot for which it is cast and the date on which it was cast, and the tally of the votes; and

(b) as soon as reasonably practicable, give written notice to the strata company of the number of votes cast in favour of and against the termination proposal and a statement of whether confirmation of the resolution by the Tribunal is required; and

(c) if confirmation of the resolution by the Tribunal is required, provide the record made under paragraph (a) to the strata company in the manner required by the regulations, but must not otherwise disclose information about who cast votes for or against the proposal or for which lots the votes were cast.

(11) A strata company must, as soon as practicable after a termination resolution is passed —

(a) lodge with the Registrar of Titles notice of that fact in the approved form; and

(b) give written notice of that fact to —

(i) the proponent of the termination proposal; and

(ii) for a leasehold scheme, the owner of the leasehold scheme.

(12) The notice must include a statement of whether or not confirmation of the termination resolution by the Tribunal is required.

(13) The regulations may impose additional requirements about the process required for voting on a termination proposal.

(1) If a termination proposal can proceed further only if the Tribunal confirms the termination resolution, the proponent of the proposal can apply to the Tribunal for that confirmation.

(2) The application must be made within 28 days after the date on which the termination resolution is passed or within an extension of that period given by the Tribunal.

(3) The application must be accompanied by —

(a) the full proposal for the termination of the strata titles scheme; and

(b) all written submissions made to the proponent about the termination proposal; and

(c) any other material specified in the regulations.

(4) For the State Administrative Tribunal Act 2004 section 45(1)(b), the following persons are entitled to a copy of, or notice of, the application —

(a) the strata company for the strata titles scheme; and

(b) for a leasehold scheme, the owner of the leasehold scheme.

(5) The strata company and, for a leasehold scheme, the owner of the leasehold scheme, will be taken to be parties to the proceedings.

(6) The strata company must, within 14 days after being given notice of the application —

(a) serve notice of the application on each person who is —

(i) the owner, occupier or registered mortgagee of a lot in the strata titles scheme; or

(ii) the occupier of common property in the strata titles scheme; or

(iii) a person whom the Tribunal requires to be served with notice of the application;

and

(b) if all or part of the parcel of the strata titles scheme is or is included in a retirement village within the meaning of the Retirement Villages Act 1992 — serve notice of the application on the Commissioner within the meaning of that Act; and

(c) provide the following to the Tribunal (which may then be released by the Tribunal to any person entitled to appear and be heard or to make submissions) —

(i) for a leasehold scheme, a copy of the notice of support for the termination resolution given by the owner of the leasehold scheme under section 180;

(ii) a record (as provided by the independent person who counted the votes) of each vote on the termination resolution, identifying the lot for which it was cast and the date on which it was cast, and a tally of the votes;

(iii) minutes of all meetings of the strata company or the council of the strata company at which the termination proposal was considered;

(iv) all written submissions made to the strata company about the termination proposal;

(v) the scheme plan, scheme by-laws and schedule of unit entitlements for the strata titles scheme;

(vi) anything else required by the regulations;

and

(d) lodge with the Registrar of Titles notice of the application in the approved form.

(7) A person who is required to be served with notice of the application is entitled to appear and be heard or make written submissions to the Tribunal (as the Tribunal determines).

(8) In proceedings for confirmation of a termination resolution of a strata company, the Tribunal may —

(a) make an order confirming the termination resolution (which may be subject to the termination proposal being modified in a specified manner as set out in subsection (13)); or

(b) make a decision not to make such an order.

(9) The Tribunal can only confirm a termination resolution if the proponent of the termination proposal satisfies the Tribunal that —

(a) the process required by this Division has been complied with; and

(b) under the termination proposal, the owner of a lot in the strata titles scheme who does not support the termination will receive fair market value for the lot or a like for like exchange for the lot; and

(c) the termination proposal is otherwise just and equitable having regard to —

(i) the interests of the owners of the lots in the strata titles scheme; and

(ii) if it is a leasehold scheme, the interests of the owner of the leasehold scheme; and

(iii) the interests of occupiers of the lots and the occupiers of the common property in the strata titles scheme; and

(iv) the interests of registered mortgagees of the lots in the strata titles scheme; and

(v) the interests of any other person with an estate or interest in, or right over, a lot or common property in the strata titles scheme that is registered or recorded in the Register.

(10) In determining under subsection (9)(b) whether an owner of a lot will receive fair market value for the lot —

(a) the Tribunal must be satisfied that —

(i) the owner will receive an amount that is at least the amount of compensation that would be required to be paid by an acquiring authority under the Land Administration Act 1997 for taking of the lot without agreement; and

(ii) the owner will not be disadvantaged in terms of the owner’s financial position as a result of the termination of the strata titles scheme;

and

(b) in considering the amount of compensation that would be payable under the Land Administration Act 1997 section 241 —

(i) that section is to be read as if the owner of the lot were the claimant and the proponent of the termination proposal were the acquiring authority; and

(ii) no regard is to be had to any reference to proposed public works nor to the undertaking of improvements after there is a notice of intention; and

(iii) an amount appropriate to compensate for the taking without agreement may be added to the award or offer (but it may not be more than 10% of the amount otherwise awarded or offered unless the Tribunal is satisfied that exceptional circumstances justify a higher amount);

and

(c) without limitation, regard is to be had to the loss or damage, if any, sustained by the owner by reason of any of the following —

(i) removal expenses;

(ii) disruption and reinstatement of a business;

(iii) liability for capital gains tax, goods and services tax or other tax or duty;

(iv) conveyancing and legal costs and other costs associated with the creation or discharge of mortgages and other interests, including for the acquisition of a replacement property.

(11) In determining under subsection (9)(b) whether an owner of a lot will receive a like for like exchange for the lot, the Tribunal must consider —

(a) whether the value of what is offered in exchange is equivalent to the fair market value of the lot (as set out in subsection (10)); and

(b) how the location, facilities and amenity of what is offered in exchange compares to that of the lot.

(12) Without limiting the factors that the Tribunal can take into account under subsection (9)(c), the Tribunal must consider the following —

(a) any evidence of impropriety in the termination process, including, for example —

(i) evidence of proxy votes being exercised invalidly or votes being affected by undue influence in connection with the termination resolution; and

(ii) evidence of false or misleading information (whether by inclusion or omission) having been included in the outline of or the full proposal for the termination of the strata titles scheme;

(b) the proportion of owners of lots in favour of and against the termination proposal in terms of numbers of lots and in terms of unit entitlements of lots;

(c) the termination infrastructure report and options reasonably available to address problems identified in the report (including the extent to which contributions would need to be increased for implementation of an option);

(d) any arrangements for the owner of a lot in the strata titles scheme to buy back into the subdivided land following redevelopment;

(e) the benefits and detriments of the termination proposal proceeding or not proceeding for all those whose interests must be taken into account.

(13) If the Tribunal is not satisfied of the matters set out in subsection (9)(b) or (c) but would be satisfied of those matters if the termination proposal were modified in a specified manner, the Tribunal may confirm the termination resolution subject to the termination proposal being modified in the specified manner.

(14) Without limitation, the modifications may include a requirement for the proponent to make a payment to a party to a lease or tenancy agreement over a lot or common property in the strata titles scheme that will terminate as a consequence of the termination of the scheme.

(15) The modifications must not have the effect of being less advantageous to any owner of a lot in the strata titles scheme, or, if it is a leasehold scheme, the owner of the leasehold scheme, than the termination proposal without modification.

(16) Subsection (15) does not apply to an owner in the capacity of a proponent of the termination proposal.

(17) Without limiting other powers of the Tribunal to make ancillary orders, if the Tribunal makes an order confirming a termination resolution, it may also order that, on specified conditions connected with the termination being met —

(a) the owner of a lot in the strata titles scheme must execute a transfer of ownership of the lot; or

[(b) deleted]

(c) a person with an estate or interest in, or right over, the whole or a part of the strata titles scheme parcel that is registered or recorded in the Register must take steps necessary for the discharge, withdrawal or other removal, or for the bringing forward, of the estate, interest or right; or

(d) the occupier of a lot or the common property in the strata titles scheme must vacate the lot or common property.

(18) If the Tribunal orders a person under subsection (17)(c) to take steps for the discharge, withdrawal or removal of an estate, interest or right the Tribunal may order the proponent or the owner of a lot in the strata titles scheme to make a payment to that person in respect of the discharge, withdrawal or removal of the estate, interest or right.

(19) If the whole or part of the parcel of a strata titles scheme is subject to a residential tenancy agreement within the meaning given in the Residential Tenancies Act 1987 section 3, the Tribunal may order that on the termination of the strata titles scheme —

(a) the tenant and the lessor must terminate the residential tenancy agreement under that Act; and

(b) the premises subject to the residential tenancy agreement are taken for the purposes of section 69 of that Act to cease to be lawfully usable as a residence; and

(c) if the tenant is given notice of termination under section 69 of that Act, then despite section 69(2) of that Act the period of notice must be not less than a period specified by the Tribunal; and

(d) the proponent or the owner of a lot in the scheme is to make a payment to the tenant under the residential tenancy agreement in respect of the termination of the residential tenancy agreement.

(20) If the whole or part of the parcel of a strata titles scheme is subject to a retail shop lease within the meaning given in the Commercial Tenancy (Retail Shops) Agreements Act 1985 section 3(1), then despite anything in that Act the Tribunal may order that —

(a) the retail shop lease is terminated on the termination of the strata titles scheme; and

(b) the proponent or the owner of a lot in the scheme is to make a payment to the tenant under the retail shop lease in respect of the termination of the retail shop lease.

(21) If the whole or part of the parcel of a strata titles scheme is subject to a lease or licence not referred to in subsection (19) or (20), the Tribunal may, subject to any other written law, order that —

(a) the lease or licence is terminated on the termination of the strata titles scheme; and

(b) the proponent or the owner of a lot in the scheme is to make a payment to the lessee or licensee in respect of the termination of the lease or licence.

(22) The Tribunal’s powers under this section are exercisable only by a judicial member (or by the Tribunal constituted of a judicial member and other members).

(23) A strata company must, as soon as practicable after being given notice of the decision of the Tribunal on an application under this section —

(a) lodge with the Registrar of Titles notice of the decision in the approved form; and

(b) give written notice of the decision to each person entitled to receive notice of the application.

(1) If a termination proposal can proceed further under section 182 (including, if required, because the Tribunal confirms the termination resolution under section 183) —

(a) the proponent of the proposal can then make a request to the Planning Commission to approve a diagram or plan of survey under the Planning and Development Act 2005 section 145 and to endorse the approval of the plan of subdivision for the proposal obtained under section 177 on the diagram or plan of survey; and

(b) the owner of the land is taken to have consented to the proponent making the request under the Planning and Development Act 2005.

(2) The Planning and Development Act 2005 applies to a request under subsection (1) subject to any appropriate modifications.

(1) The proponent of a termination proposal can make an application for termination of a strata titles scheme if —

(a) the relevant approval has been obtained as set out in section 184; and

(b) the steps required to be taken before termination of the scheme for winding up the strata company under the termination proposal or an order under section 192 have been taken.

(2) The application must be made within 12 months after the termination resolution has been passed or, if the proposal can only proceed if the Tribunal confirms the termination resolution, after the Tribunal has made an order under section 183 confirming the termination resolution.

(1) If the proponent of a termination proposal makes a decision not to proceed with the proposal, the proponent must, as soon as reasonably practicable, withdraw the proposal by written notice to the strata company and, if it is a leasehold scheme, the owner of the leasehold scheme.

(2) A strata company that is given written notice of the withdrawal of a termination proposal from the proponent of the proposal must, within 14 days after being given the notice —

(a) serve the notice on each person who is —

(i) the owner of a lot in the strata titles scheme; or

(ii) if the full proposal for the termination of the strata titles scheme has been served by the strata company — the occupier of a lot or the common property in the strata titles scheme; or

(iii) a registered mortgagee of a lot in the strata titles scheme;

and

(b) lodge with the Registrar of Titles notice of the withdrawal of the proposal in the approved form.

(1) This section applies if a termination proposal cannot proceed further for any of the following reasons —

(a) at the end of 3 months after the outline of the termination proposal has been submitted to the strata company, the requirements of section 176 have not been met;

(b) at the end of 3 months after the full proposal has been submitted to the strata company, the requirements of section 180 have not been met;

(c) at the end of 6 months after service of the full proposal by the strata company, a termination resolution has not been passed;

(d) at the end of 12 months after a termination resolution that does not require the confirmation of the Tribunal has been passed, no application for termination of the strata titles scheme has been made;

(e) the termination resolution requires confirmation of the Tribunal and —

(i) the Tribunal makes a decision not to confirm the resolution; or

(ii) at the end of 12 months after the making of an order under section 183 confirming the termination resolution, no application for termination of the strata titles scheme has been made.

(2) If this section applies, the strata company must —

(a) lodge with the Registrar of Titles notice, in the approved form, that the termination proposal cannot proceed further; and

(b) give written notice confirming that fact to —

(i) the proponent of the termination proposal; and

(ii) for a leasehold scheme, the owner of the leasehold scheme; and

(iii) each member of the strata company.

If a notice is lodged with the Registrar of Titles under this Division, the Registrar of Titles must —

(a) record a notification in the Register; and

(b) for a notice of withdrawal of a termination proposal or a notice that a termination proposal cannot proceed further, record the notice as a withdrawal of all earlier notifications recorded in the Register about the termination proposal.

(1) A strata company may charge the proponent of a termination proposal reasonable fees to cover costs associated with undertaking an activity under this Division.

(2) The fees must not exceed any limits imposed by the regulations.

(3) A strata company need not undertake the relevant activity until the fees have been paid.

(4) If the strata company undertakes the relevant activity before receiving payment for the activity, the strata company can recover, in a court of competent jurisdiction, the fees for the activity as a debt owed to it by the proponent of the termination proposal.

(1) The regulations —

(a) must require the proponent of a termination proposal to enter into specified arrangements for the owners of lots in the strata titles scheme proposed to be terminated to obtain independent advice or representation in connection with the proposal; and

(b) must specify arrangements for obtaining fuller or more extensive advice or representation for a class or classes of owner identified in or under the regulations as vulnerable, having regard to —

(i) age, illness, trauma, disability or other factors that may impair the ability of an owner to consider and make an informed decision in relation to a termination proposal; or

(ii) financial disadvantage which would significantly impair the ability of the owner to bear the cost of obtaining appropriate professional advice in relation to a termination proposal.

(2) Without limitation, the arrangements may include a requirement for the proponent of a termination proposal to pay an amount to a trustee to be held in trust for owners to obtain independent legal advice or representation, valuation advice or reports or financial or taxation advice in connection with the proposal.

(3) The regulations may specify terms of a trust referred to in subsection (2).

(1) If all the lots in a strata titles scheme are owned by the same person, that person can make an application for termination of the scheme if, under the Planning and Development Act 2005 Part 10 —

(a) a plan of subdivision for the termination of the scheme has been approved (that is, for the parcel to cease being subdivided by a strata titles scheme); and

(b) a diagram or plan of survey has been endorsed with that approval.

(2) The Planning and Development Act 2005 applies to the required approval subject to —

(a) the modification that a reference to subdivision is to be read as including a reference to termination of a strata titles scheme; and

(b) any other appropriate modifications.

(3) For a leasehold scheme, if the applicant for cancellation of registration of the scheme is not the owner of the leasehold scheme, the application can only be made if the owner of the leasehold scheme has given written consent to the application.

(1) Before a strata titles scheme is terminated, an application may be made to the Tribunal for an order for directions about winding up the strata company by —

(a) an owner of a lot in the scheme; or

(b) a registered mortgagee of a lot in the scheme; or

(c) the strata company; or

(d) a judgement creditor of the strata company; or

(e) for a leasehold scheme, the owner of the leasehold scheme.

(2) If proceedings are before the Tribunal under section 183, the application may be made in those proceedings.

(3) Without limitation, an order under this section may include directions for —

(a) the sale or disposition of property of the strata company (including to whom and how proceeds must be disbursed); or

(b) the discharge of the liabilities of the strata company; or

(c) the administration and functions of the strata company.

(4) The applicant and any person to whom a copy of the application has been given under the State Administrative Tribunal Act 2004 section 45, is entitled to appear and be heard on the hearing of the application.

(5) The Tribunal may vary an order made under this section on the application of any person who was entitled to appear and be heard on the hearing of the application for the order.

(6) An order under this section prevails over steps specified in a termination proposal for winding up of the strata company to the extent of any inconsistency.

(1) A notice of the expiry of a leasehold scheme or an application for termination of a strata titles scheme must —

(a) be made to the Registrar of Titles; and

(b) be in the approved form; and

(c) for termination, be accompanied by the diagram or plan of survey endorsed with the approval of the Planning Commission under the Planning and Development Act 2005; and

(d) be accompanied by evidence in the approved form that the requirements of this Act for the termination of the scheme have been complied with; and

(e) be accompanied, if applicable, by —

(i) a statement (in the approved form) of how each item registered or recorded for the scheme in the Register is to be dealt with; and

(ii) disposition statements, instruments or documents necessary for that purpose;

and

(f) be accompanied by the fee fixed by the regulations.

(2) An application for termination of a strata titles scheme can be made before the diagram or plan of survey required for termination of the scheme is endorsed with the approval of the Planning Commission but the registration of the scheme cannot be cancelled until the diagram or plan of survey is so endorsed.

(1) The Registrar of Titles must, to give effect to the termination of a strata titles scheme on an application for termination made in accordance with section 193 —

(a) cancel the registration of the strata titles scheme; and

(b) cancel the certificates of title for the lots in the strata titles scheme; and

(c) for a leasehold scheme, record on or in connection with the certificate of title for the parcel the fact that the scheme is terminated.

(2) The Registrar of Titles must, to give effect to the termination of a leasehold scheme with effect from the end of the expiry day for the scheme on a notice of expiry given in accordance with section 193 —

(a) cancel the registration of the strata titles scheme; and

(b) cancel the certificates of title for the lots in the strata titles scheme; and

(c) record on or in connection with the certificate of title for the parcel the fact that the scheme is terminated.

(3) The Registrar of Titles must take the action required under this section in the manner that the Registrar of Titles considers appropriate for incorporation in the Register under the Transfer of Land Act 1893.

(1) A strata titles scheme is terminated —

(a) for a leasehold scheme —

(i) at the end of the expiry day for the scheme; or

(ii) if the registration of the scheme is cancelled before that day, when the cancellation of the registration of the scheme is registered or recorded by the Registrar of Titles;

or

(b) for a freehold scheme, when cancellation of the registration of the scheme is registered or recorded by the Registrar of Titles.

(2) On termination of a strata titles scheme, the following occur —

(a) the scheme documents cease to have any effect;

(b) the lots and common property cease to exist;

(c) the land becomes a parcel of land that is not subdivided by a strata titles scheme;

(d) for a leasehold scheme —

(i) the person who was the owner of the leasehold scheme immediately before termination becomes the owner of the parcel of land and is entitled to vacant possession of the land; and

(ii) if the leasehold by-laws (as in force immediately before termination of the scheme) provided for the payment of compensation on the expiry of the scheme — the owner of the parcel of land (from time to time) is liable to pay compensation to the persons who were owners of lots in the scheme immediately before its termination as required under those by-laws;

(e) for a freehold scheme — the persons who were owners of the lots immediately before termination of the strata titles scheme become the owners of the parcel of land as tenants in common in shares proportional to the unit entitlements of their respective lots immediately before termination of the scheme (or, if there was only 1 such owner, the person becomes the owner of the parcel of land);

(f) the strata company ceases to exist;

(g) all rights vested in the strata company immediately before it ceased to exist are vested in the persons who become the owners of the parcel of land on termination of the scheme;

(h) the persons who become the owners of the parcel of land on termination of the scheme become jointly and severally liable for all of the liabilities of the strata company subsisting immediately before it ceased to exist (and those persons are liable to contribute amongst themselves in shares proportional to the unit entitlements of their respective lots immediately before termination of the scheme);

(i) legal proceedings begun by or against the strata company may be completed by or against the persons who were owners of lots in the scheme immediately before its termination.

(3) If 2 or more persons own a lot in a strata titles scheme, or are the owners of a leasehold scheme, that is terminated, the owners hold their share in the new parcel of land as tenants in common or as joint tenants in the same manner as they owned the lot or scheme and, if they owned it as tenants in common, in the same proportions as they owned the lot or scheme.

(1) The Minister for Lands may in a taking order in respect of the whole of a parcel declare that a strata titles scheme for that parcel is terminated on the registration of that order.

(2) If subsection (1) applies the Registrar of Titles must register the land in the parcel in the name of the Crown or other authority in which it has vested under the taking order.

(3) In this section —

Minister for Lands means the Minister to whom the administration of the Land Administration Act 1997 is for the time being committed by the Governor;

taking order means a taking order made under section 177 of the Land Administration Act 1997.