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it is a building we build in a family trust it is 2000sq. We sold 40% of the building 3 years ago and didn't get the right information regarding the stand and thus have sold the 40% only of the building and not of the stand but that's water under the bridge. we standing now at the final stage of the Insurance settlement.
We the 60% owners want to sell. We form a body corparate and according to the sectional title act we have to give the 40% share holder first option to buy us out. They don' t want to they want to build on their 40%. We have a buyer for the land once we demolished the ruins. The buyer wants the full 100% Land. so now we sitting with what do we do?
It is a sectional title scheme. The two units under roof are 60 and 40 % of building and the rest was common property where the koi pond and walking area, public toilets, play gym, parking area and so on. Can i send pic. If you look at the pic u will see on the left and right their was a buildings. It was split by the koi pond in the middle. It was a 60 and 40 split with the common property we shared.
yes with the sale of the 40% there was a clause put in that gave them first option to buy and if they can not match the highest bidder then we can sell. The question now comes in how does the sale work regrading the full 100% does it work on the majority vote or not. Senario - we own the 60% and we want to sell and not rebuild are we entitled to do so if the 40% doesn't want to buy the land from us? Will they be forced to sell if their undivided 40% share in the land? Lastly what is the law regarding the Insurance pay out for the Burned down building? Does each share holder get their percentage share of the payout or not?
Thank you for your input so far.
So the sale of the land does not work on the majority voting system then.
What do we stand to do now that we do not want to rebuild?
I will got and follow up exactly what the Insurance Company says regarding any clauses stipulating the situation of rebuilding or not.
So Legally we are at a dead off and no one can do anything regarding rebuilding or selling as we are not in agreement regarding the situation surrounding the building?
The other party was saying today in the AGM that they want to buy out our share but only for the value of the land and then they take all the insurance money?
This to me is fraud to say the least as we have 60% share holding in the BC which is also the owner of the policy which in turn is then still 60% of the claim amount our rightful money. Is this correct ?
Thank you. yes this is very stressful for the lawyer that set up the B.c does not really give us clear answers. We all clueless with the Sectional title act.
If we want out can we insist that they pay us out for our portion. Then they take the insurance money to rebuild?
We want nothing to do with the building or the shareholders at this point. this has been a nightmare and we want to close the book on this chapter.
Thank you so much for your feedback. We really appreciate it a lot.
I was wondering if you could answer one more question?
i have wrapped my head around in this and everyone seems to have a different answer to suit themselves.
I hope i make sense. The Kemp family trust owned the whole property and sold 40% to Purple Plum 3 years ago. Which a Body Corprate was formed.
Then Kemp family trust sold 15% to Oak park this year.
Now does oak park get 15% shareholding of the full 100% ownership or does oak park only share in The Kemp family trust of 60% where they bought from?
The building burned down and the insurance money is being paid out and they selling the land.
So does oak park of 15% only share from the 60% who they bought from or from the 100% total of the insurance money and land?
Purple plum bought Unit 2. Oak park bought 163 sq of Unit 1 from Kemp family trust that gave her 15% shares.
Under roof is 1000sq Unit 1 and unit 2.
Purple Plum bought Unit 2 that was 400sq and Kemp family had unit 1 that was 600sq.
Oak park bought 163sq from Kemp family trust.
The remaining 1000 sq went under common property.
that problem is sorted now. Now comes the share in the money from the insurance and the ground.
How does the money get split between the 3 entities ?
46% ; 14% ; 40%
or does the 14% only get from the 60% that they bought in from.
Sorry for all the questions but want to make sure.
I do understand that the 40% get 40% of the full payable amount but the 14% only bought from the 60% KFT and not the complete BC of 100% and therefore our question.
Thanks in advance
The lawyer is going to termanate the Body Corparate because the building burned down. he said each one should take their portion of the insurance and they selling the Land.
That is why we needed to know about oak park how their share would work because they only bought in this year from Kemp family trust.
Thank you for your time.
Once again thank you so much.