Please note that the number of months each step should take is approximate and can change.
Step 1: Gauge interest in winding up the strata
The Strata Council initiates discussions about a potential sale and begins investigating options.
Step 2: Hold an informal meeting to assess agreement
The Council interviews real estate agents and then calls an informal meeting with all strata owners to explain the steps involved in potentially winding up the Strata Corporation.
Step 3: Call a general meeting to advance the process
At an Annual General Meeting (AGM) or Special General Meeting (SGM), the Strata Council proposes the following for owner approval:
Vote on Confidence: Ensure at least 80% of owners agree to proceed with winding up the Strata Corporation. Engage Legal Counsel: Authorize hiring a lawyer to draft and review agreements and provide legal advice throughout the process. Appoint Real Estate Agents: Approve hiring a real estate group to market the property and negotiate potential offers.
Step 4: Prepare the property for listing (1-2 months)
With legal representation in place, the Council formalizes the listing agreement, enabling the Agents to start marketing the property and soliciting offers.
Step 5: Market the property (We are here) (4 months)
Once the listing agreement is finalized, the Agents begin marketing the property widely, using various strategies to generate maximum interest from potential buyers.
Step 6: Review offers & formalize a sales agreement (3 months))
After marketing the property, the Council reviews incoming letters of intent (LOIs). With guidance from legal counsel and the Agents, the Council can accept, reject, or counter these offers. Once an LOI is agreed upon, the lawyer drafts the formal purchase agreement, including conditions for both the buyer and the seller.
Additional Insight
- An SGM is held to review the selected offer, with both the lawyer and Agent present
- A minimum of 80% of registered owners must approve the offer via sealed ballot
- If a 100% approval vote is achieved, there’s no need to involve the court for dissolution
Step 7: Finalize conditions for both parties (3-6 months)
The accepted offer will likely include conditions. Key conditions may include:
- A feasibility condition for the buyer
- A "Cold Feet" clause for the strata
Once the buyer removes their conditions, the strata calls an SGM for a final vote, requiring 75% of owners to approve the sale.
Step 8: Court approval (1-2 months)
If the final vote passes, the lawyer applies to the court to dissolve the Strata Corporation, cancel the strata plan, and appoint a liquidator to manage the distribution of sale proceeds.
Step 9: Liquidation & completion (1-2 months)
Once the court appoints a liquidator, they:
- File the vesting order
- Finalize move-out dates
- Handle outstanding expenses
- Distribute sale proceeds and arrange rent-free periods if applicable
Additional Insight
- If a 100% approval vote was achieved, appointing a liquidator is not required