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NSW: Collective sale ballots. Improving transparency and trust in the decision making process

improving trust and transparency in strata collective sales nsw

This article discusses improving trust and transparency in strata collective sales in NSW by explaining why clear, upfront reporting of ballot results matters and when owners are entitled to understand how votes were counted.

Question: Is it acceptable for the chair to withhold which lots voted in ballots about selling the whole building to a developer?

Two written ballots have been held in our 23-lot strata about the potential sale of the entire block to a developer. Neither ballot paper was marked as private, confidential, or secret.

For the first ballot, the chair reported the result as 11 in favour and 7 against, which means 5 lots did not respond. Because the units are different sizes, knowing which lots voted (and which did not) would allow owners to understand the voting in terms of unit entitlements. However, the chair refuses to reveal which lots submitted a ballot or how each lot voted, despite repeated requests.

For the second ballot, the chair reported the outcome as “Affirmative” with no voting breakdown at all. Is this level of secrecy required? We feel it raises concerns about transparency and due diligence, especially given the seriousness of a potential collective sale. Is the chair entitled to withhold this information from other owners, or should the full vote count, plus which lots voted, be disclosed?

Answer: Information about how results are calculated and clear reporting of outcomes help build trust and reduce the risk of unnecessary disputes.

In NSW strata schemes, it is important to distinguish between an informal ballot and a decision made through the statutory collective sale process. A ballot, whether conducted by paper, email, or electronic survey, has no legal force to approve, authorise, or commence a collective sale or redevelopment. A collective sale can only progress when the owners corporation passes the required special resolution at a properly convened general meeting, and then follows the formal steps prescribed by legislation. For this reason, owners should not be concerned that a ballot result, on its own, “commits” the scheme to a sale. It does not.

That said, transparency still matters, especially where the topic is the potential sale of an entire building. Even a non-binding ballot can shape expectations, influence negotiations, and affect owner confidence. Where a scheme contains lots with different unit entitlements, reporting outcomes without identifying participation (or explaining how the result was calculated) prevents meaningful assessment of whether support is broad-based or concentrated.

Reporting a second ballot simply as “affirmative” without numbers or methodology provides even less clarity and is inconsistent with good governance for a decision of this magnitude.

Whether a ballot is stated to be secret makes a practical difference. If confidentiality is intended, it should be clearly declared upfront and the process designed accordingly. If it is not declared secret, secrecy should not be applied after the fact.

Where a chairperson refuses to release outcomes, there are structured governance pathways beyond informal requests: the strata committee can resolve to require disclosure, owners may seek inspection of relevant records (where they exist and are not genuinely secret), and owners can move a general meeting motion setting clear reporting standards for future ballots.

If transparency concerns persist, owners should avoid relying on indicative polling and obtain independent advice before supporting further steps.

As a practical approach, schemes should ensure that any ballot is clearly described upfront as either indicative or binding, and whether it is intended to be secret.

Information about how results are calculated and clear reporting of outcomes help build trust and reduce the risk of unnecessary disputes. For decisions of this significance, owners are best served by a transparent process and a properly convened general meeting before any reliance is placed on indicative feedback.

Abe Ayoubi W: Senior Strata Manager (NSW) E: abe.strata@gmail.com

This post appears in the March 2026 edition of The NSW Strata Magazine.

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