Splitting the sale price of a strata building

Hi all,

I have a question regarding the sale price split of a strata building if sold in one line.

The building has three levels. Each level is separately owned and has it's own strata title. Each title has an equal amount of car spaces. The first and second levels are office suites and have the same lettable area. The ground floor is a retail shop and has a much smaller lettable area.
If all three owners are looking to sell the building in one line to a developer what is the normal industry method of splitting the sale price for each owner? I expect a valuation would be done on each title and the split would represent the value percentage for each title. Another owner suggested it could be calculated on the floor area.

Thanks,
Leo

 

GFA. The developer is after the entire building and the 3 owners can squabble between themselves for their share.

As vendors you will need to agree the % each of the sales price. Engage a valuer to determine each individual interest then as a % of the total.

 

purchaser would enter into separate contracts with each of the owners. Purchaser might also want to consider not being just 1, but perhaps 3 different entities.

 

Probably still seen as a related transaction and pay stamp duty at the higher rate.

 

Definitely

 

If it is a collective sale - this is covered under the strata law changes in NSW and is based on unit entitlements.

Ironically, some people want to reduce their unit entitlements to reduce their proportion of strata expenses which could well backfire.

 

It requires court approval to ensure its fair to all parties. Prevents a gangster gathering to encourage a minority to sell

 

you argue, bargain and try to justify that yours is worth more. Then people threaten to pull out and stop the whole process.
Then they either put the plan on hold or make application to the land and environment court to test the new strata laws.
Regardless, this wont happen in your hypothetical and you've said there's only 3 lots, if one person doesn't agree the other two only control 66%, not enough according to the new strata
laws.

in my opinion it should be based off unit entitlement (in most instances). I have seen entitlement be allocated in some weird and wonderful ways that are not very equitable.