Collective sale (en-bloc)

Study notes

En-bloc: how a majority of subsidiary proprietors can sell the whole strata development over a dissenting minority, and how the money and the process work.

What you must know

• Collective sales of strata-titled property are governed by the Land Titles (Strata) Act and the Building Maintenance and Strata Management Act’s en-bloc provisions.
• The consent threshold is 80% of share value where the development is less than 10 years old, and 90% where it is 10 years or older.
• Consent is by share value with a majority in number of owners also required — read both tests.
• A collective sale committee, appointed at a general meeting, runs the process: appointing the marketing agent, method of sale, and the draft sale.
• Where the threshold is met but owners object, the collective sale application goes to the Strata Titles Board (or the High Court), which may order the sale if the minority is not unfairly prejudiced.
• Sale proceeds are distributed according to share value unless the sale and purchase agreement provides otherwise.