Strata Titles Act 1985

A strata titles scheme is terminated —

for a leasehold scheme —

at the end of the expiry day for the scheme; or

if the registration of the scheme is cancelled before that day, when the cancellation of the registration of the scheme is registered or recorded by the Registrar of Titles;

for a freehold scheme, when cancellation of the registration of the scheme is registered or recorded by the Registrar of Titles.

On termination of a strata titles scheme, the following occur —

the scheme documents cease to have any effect;

the lots and common property cease to exist;

the land becomes a parcel of land that is not subdivided by a strata titles scheme;

for a leasehold scheme —

the person who was the owner of the leasehold scheme immediately before termination becomes the owner of the parcel of land and is entitled to vacant possession of the land; and

if the leasehold by‑laws (as in force immediately before termination of the scheme) provided for the payment of compensation on the expiry of the scheme — the owner of the parcel of land (from time to time) is liable to pay compensation to the persons who were owners of lots in the scheme immediately before its termination as required under those by‑laws;

for a freehold scheme — the persons who were owners of the lots immediately before termination of the strata titles scheme become the owners of the parcel of land as tenants in common in shares proportional to the unit entitlements of their respective lots immediately before termination of the scheme (or, if there was only 1 such owner, the person becomes the owner of the parcel of land);

the strata company ceases to exist;

all rights vested in the strata company immediately before it ceased to exist are vested in the persons who become the owners of the parcel of land on termination of the scheme;

the persons who become the owners of the parcel of land on termination of the scheme become jointly and severally liable for all of the liabilities of the strata company subsisting immediately before it ceased to exist (and those persons are liable to contribute amongst themselves in shares proportional to the unit entitlements of their respective lots immediately before termination of the scheme);

legal proceedings begun by or against the strata company may be completed by or against the persons who were owners of lots in the scheme immediately before its termination.

If 2 or more persons own a lot in a strata titles scheme, or are the owners of a leasehold scheme, that is terminated, the owners hold their share in the new parcel of land as tenants in common or as joint tenants in the same manner as they owned the lot or scheme and, if they owned it as tenants in common, in the same proportions as they owned the lot or scheme.