Need your advice

In a nutshell, as far as I can tell. This is based on what I know about BC for our townhouse.

$14m divided by 67 = approx $255,ooo each .

There may be 34 individual homes (villas, townhouses and units) in the complex, but they will be all different sizes, some one bedroom, some two bedroom etc. Some would have a courtyard, some without. Therefore some will be worth one voting right each and others will be worth two voting rights each. When you look at your AGM documents, there will be a page that records the contact details for all the owners and what their proportion is. Some owners will pay a higher BC fee than other owners based on their allocation.

As you own two lots, I would expect your share would be $510,ooo less a share of any sale costs. All the owners would own "units" in the common land, shared between them, which is why you would be best to seek independent legal advice. The owners would probably not own this common land directly, the BC entity would probably own it on behalf of the owners. We cannot really comment without the documents.

 

Dear Angel, thank you for your comments and to Wylie for the referral, that's really what I wanted some clarification on, whether it was divided by the number of lots as per the contract, or was based on the BC C'tee letter of dividing by 40. "When assessing offers we, the Committee, use, as a general rule of thumb, a factor of 40". Due to the property manager. I will follow up with a lawyer when the time comes, but this info will help me sleep better. Thanks everyone!

 

If you are happy to send letter through to [email protected] then I will get one of my guys to have a quick look at it and then report back through here (no identifying info). That way can let you know if simple/ complex etc.

 

That would be amazing, will do on the weekend. Thank you much!

 

Mr Richards is your go-to man.

 

You are an Angel, I feel so supported with this forum, thanks so much.

 

The offer, although worded poorly, looks legitimate enough. It is very strangely written and quite direct regarding the dreamers in the group wanting ridiculous sums.

The numbers will refer to interests, so they are talking an average number at present for the purposes of negotiation with the buyer. It looks like they will eventually split the pricing according to the lot interests in the community management statement.

If you are happy with the average sort of price and wanted to sell then it will be the contract that you need to look at carefully. This intention form at present holds no real weight.

A good response (if acceptable pricewise) would be something along the lines of:

I am interested in accepting the offer to purchase my unit subject to the actual price being outlined in a contract.

 

Thank you very much. I thought the letter was bizarre, no talk of process or what happens next. I'm pleased to hear you think it will follow the lot breakdown, that was my concern. Thanks so much for your time, I will be in contact if it goes through. I was very anxious until I received help through this forum.

 

Hi,

Just make sure you don't 'worry' about all of this.

In QLD, the committee/body corporate manager have no ability to sell a property out from under you.

There are also no rules around price. If you want to hold out for $500K, you are entitled to do so, regardless of what entitlements are attached to your lot. Using entitlements as a basis for price is usually just how first offers are made.

If this is successful, it would require the developer to have a sales contract on all 34 units (or maybe one big contract with all the owners as parties). In my experience, out of 34 units, unless the amount offered is crazy-good, you will get hold-outs who refuse and kill the whole deal.

You won't wake up one day to a wrecking ball.

Matt

 

I would question if a strata manager has capacity under state law to contract the property of a owner in almost any instance. If there is 100% agreement then they may be agent for the owners to assist a sale. I say almost as there are instances (in NSW) when stratas are to be given authority to use 75 % of owners as authority to represent all owners to enforce a sale of the remainder. I dont know if the proposed law change even was agreed....

Apartment owners could be forced to sell under strata law shakeup

I would agree with Matt savage above with : unless the amount offered is crazy-good, you will get hold-outs who refuse and kill the whole deal.

My son does devs and he struggles at times with 5+ landowners. He reckons 1 in 5 gets the idea they know more than anyone else.

Update - Seems it became law and some media on that is here Collective Sale of a Strata Scheme | Netstrata

Love the comment All owners must receive at least market value for their property....ie Chairman gets twice the value. Others get 5% over market ? Maybe thats the role of land and enviro in approving it ?

 

P. S. Thanks for the heads up on not to worry, I really appreciate that. I am settling down now!

 

PPS. The 'average' figure quoted by our committee that we would get, was much lower than our entitlement, so that's what had me scratching my head. But it will all work out with time.

 

I empathise with your son! I don't want to be that 1 in 5! If we knew the answer to that we could have world peace! Perhaps we could enlist a president's son-in-law to help out....
We've been told our apartment market value is low, but to buy in the same area with an equivalent piece of land, it's going through the roof.

 

In Queensland there is a review of the legislation underway, and a recent recommendation from Queensland University of Technology was to permit forced sales if a certain number of voters agreed (i.e. 80% from memory) and only if a court agreed that the building was uneconomical to continue to repair, and the court to determine fair prices etc.

That recommendation was not designed to make it easier to sell to developers, but to deal with the buildings that have such major problems that it makes more sense to knock them down than to repair them (i.e. concrete cancer in the Gold Coast residential towers).

It will be interesting to observe as it is a new problem for Australia where most strata/community title blocks are less than 50 years old.

Matt