The perils of urban renewal

Some tenants lose out when apartment blocks are redeveloped, writes Cathy Sherry.

In Sydney it is obvious many strata apartment blocks are dilapidated and near the end of their lives. Under-maintenance from insufficient sinking and administrative funds is often as much to blame as age.

For a building to be demolished and redeveloped, the strata scheme must first be terminated. This can happen either by application to the Supreme Court or by application to the registrar-general. The latter is the most common, as it is cheaper and easier. However, there is a catch. It is available only if all owners agree. It is impossible if one or two owners hold out, refusing to sell or agree to the termination.