Cities in Australia are gradually becoming more densely populated and the local area aesthetics are set to undergo major transformations. High rises, for example, are becoming more common and an increasing number of neighbourhoods are collectively selling their properties to developers.
Prior to the Strata Schemes Development Act 2015, individual owners could not be forced to sell their properties if they didn’t want to. However, according to the new SSD Act, if more than 75% of property owners are in favour of a sale, then you can be forced to sell under law.
Group Property Sales and Package Deals
Group neighbourhood property sales are becoming increasingly common.
Gone are the days when developers were legally obliged to approach individual property owners. Individuals are increasingly taking a proactive lead and joining forces to offer their properties as a package deal. This way, owners are able to maximise the sale price by taking initiative and becoming a part of the larger site offering.
This particularly the case in areas that are marked out for rezoning or where new infrastructure such as roads or railway stations are being constructed.
Our experienced legal team at Owen Hodge can help you and your neighbours right from the outset so that you are comfortable about the whole process from start to finish.
What’s the First Step?
Local area councils have clear development ratios that apply to properties within a certain zone. This affects the number, size and style of properties that can be – or cannot be – redeveloped in that specific area. Land sizes over 700 square metres, for example, usually qualify for redevelopment.
From the developers’ perspective, the costs of property acquisition plays an important part in determining profitability. They are also more attracted to properties that are located within close proximity to public transport, shopping centres, schools or other amenities.
Seen in this light, it’s not necessary that the developer will take the deal just because the neighbourhood has banded together to sell property. In other words, the developer may be inflexible while discussing the commercial terms of the sales agreement.
Legal documents (especially those issued by developers) can be complex and often include legal jargon which may not be easy to understand. We will help you interpret the terms and offer expert guidance with regard to your rights and obligations.
Joint Sales Agreement for Collective Selling
Our expert Owen Hodge team will review all associated documents and correspondence to ensure that the joint sales agreement reflects what has been agreed to in principle.
For example, not every property may have a swimming pool and some owners (not all) may need to consider land tax or capital gains tax issues. Again, depending on various factors, the total sale price may or may not split proportionately among owners. These individual special conditions will need to be tailored into the joint sales contract to cover different situations.
Our committed property lawyers at Owen Hodge are happy to leverage our extensive experience for your benefit. Please feel free to contact us on 1800-770-780 for more information on how the process works and how we can help you.