New South Wales Consolidated Acts

STRATA SCHEMES (LEASEHOLD DEVELOPMENT) ACT 1986 - SECT 39

39 Procedure for converting leasehold strata scheme

(1) Where:

(a) under the leases of the lots the subject of a leasehold strata scheme, the lessees have rights to acquire the lessor’s reversion in those lots, or

(b) apart from those leases, the lessor confers on those lessees rights to acquire the lessor’s reversion in those lots,

the body corporate may at a meeting duly convened for the purpose of ascertaining whether those rights are to be exercised, being a meeting held before the scheme is terminated (whether under section 37 or otherwise), pass a special resolution authorising the conversion of the leasehold strata scheme into a freehold strata scheme.

(2) Rights of the kind referred to in subsection (1) shall not be exercised unless or until a special resolution has been passed in accordance with that subsection.

(3) Where a special resolution has been passed in accordance with subsection (1) at the meeting, the lessees may exercise their rights to acquire from the lessor under the scheme the reversion in their respective lots.

(4) If any lessee has not, within 6 weeks after the date of a meeting at which a special resolution is passed in accordance with subsection (1), acquired the reversion in the lessee’s lot, the body corporate may, pursuant to a unanimous resolution and notwithstanding section 22, acquire the reversion in and the lease of the lot.

(5) If the reversion in any lot has not, within 3 months after the date of that meeting, been acquired by the lessee of the lot or the body corporate, the lessor under the scheme may acquire the lease of the lot.

(6) When there is no outstanding reversion in a lot the subject of the leasehold strata scheme concerned, the lessor under the scheme shall forthwith notify the Registrar-General 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 the subject of that scheme.

(7) If the reversion in any lot has not, within the period of 6 months after the date of that meeting, been disposed of in accordance with this section, the lessor under the scheme shall, at the expiration of that period, notify the Registrar-General in the approved form of:

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

(b) the disposal of the reversionary estates in the lots the subject of that scheme, being 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 any lot the reversion in which, or lease of which, has not been so acquired.

(8) Any notification required by this section to be given by the lessor under the scheme may be given by the body corporate or any lessee or other person and, if it is so given, shall be deemed to have been given by that lessor.