Termination Of Strata Schemes – Owner Agreements vs Court Orders
While court orders terminating a strata scheme are still relatively rare, there is a rising trend of it occurring via owners agreements
On 12 February 2026, the Land and Environment Court of New South Wales made orders terminating a strata scheme under Part 10 of the Strata Schemes Development Act 2015 (NSW) in The Owners – Strata Plan 1998 v Perifa Gerrale Pty Ltd [2026] NSWLEC 9.
Part 10 establishes the legal framework for the renewal of strata schemes in New South Wales. It enables lot owners to pursue redevelopment or a collective sale of their building, even where not all owners agree.
The recent decision is significant because it marks only the third time the Court has exercised its power to terminate a strata scheme since the introduction of Part 10 in 2016. The previous decisions were:
- Application by the Owners – Strata Plan No 61299 [2019] NSWLEC 111
- The Owners – Strata Plan 934 v T&P Chimes Development Pty Ltd (No 2) [2025] NSWLEC 28
In practical terms, that equates to roughly one court ordered termination every three years.
Administrative terminations on the rise
While court ordered terminations remain rare, a different trend is emerging outside the courtroom. In the second reading of the Strata Legislation Amendment Bill 2023 (NSW), the Minister noted:
“The Registrar General has seen a marked increase in administrative terminations since the strata renewal reforms commenced, averaging around 74 per year — more than double the number in the years immediately before the reform commenced.”
Administrative terminations, which are overseen by the Registrar General of New South Wales, require unanimous consent from all lot owners. By contrast, Part 10 allows a strata scheme to be terminated with the support of at least 75% of owners, subject to court approval.
The contrast is striking:
- Court ordered terminations under Part 10 are infrequent.
- Administrative terminations, requiring full agreement, are increasing significantly.
This trend suggests that, rather than resisting redevelopment or renewal proposals, lot owners are increasingly willing to reach consensus. To borrow from “The Castle”, while some owners may instinctively feel “it’s the vibe” to hold on, the practical reality is that more are choosing agreement over resistance.
The influence of Part 10
Although Part 10 has only rarely been invoked successfully in the Court, its broader impact appears more significant. The availability of a statutory pathway to termination with a 75% threshold may be encouraging owners to engage more constructively and reach unanimous agreement, thereby avoiding the need for litigation altogether.
In that sense, Part 10 may be operating less as a frequently used mechanism and more as a catalyst for negotiated outcomes.
Key takeaway
The rarity of court ordered strata terminations should not be mistaken for a lack of impact. On the contrary, the introduction of Part 10 appears to have shifted the dynamics of strata renewal in New South Wales, encouraging agreement and increasing the prevalence of administrative terminations.
As the data continues to develop, Part 10 may prove to be one of the more quietly influential reforms in the strata sector.
If you or someone you know wants more information or needs help or advice, please contact Jackson O’Keeffe (02) 9923 2321 or email jokeeffe@somervillelegal.com.au .