Strata Reform
Proposed new strata legislation will make it possible for developers to access older strata buildings even where some lot owners are opposed.
Australia’s richest person, billionaire property developer Harry Triguboff, is selling his company’s strata-title management business, pointing the finger at changes to NSW laws for his decision.
Triguboff, who founded Australia’s largest apartment developer Meriton, said he was selling the strata business because incoming laws would “effectively shut developers out”, and others are expected to follow suit.
- Owners corporations should be aware that on or from 30 November 2016, the strata reform requires owners corporations to consider building defects and rectification at each annual general meeting until the expiry of the warranty periods for the applicable statutory warranties.
A common problem for investment property owners, whose investment property is a strata apartment, is getting the owners corporation to properly maintain and repair the common property. This can involve an owners corporation lacking the funds required to undertake the works or simply involve inertia.
In just over three months NSW strata apartment owners will have more rights running, renovating and reselling their properties thanks to reforms expected to herald nationwide changes to property management and ownership.
Submissions on the Strata Schemes Management Regulation 2016 and Strata Schemes Development Regulation 2016
- Introduction
This is a submission from Bannermans Lawyers addressing a number of issues with the draft Strata Schemes Management Regulation 2016.
The new strata laws that commenced on 30 November 2016 have made significant changes to the appointment and role of strata managing agents. Investment property owners also need to be aware of the changes.
The new strata laws have made significant changes to the appointment and role of strata managing agents.
Under the current legislation there is a requirement for owners corporations “to take into account” the 10 year sinking fund plan. Many schemes do not comply with this obligation in good faith with the result that the sinking fund remains just as underfunded as it was before 10 year plans were required.
There are a lot of changes and many affecting developers, such as:
- When registering a strata plan the unit entitlement will need to be made in accordance with a registered valuation.
- When the scheme is registered the undertaking to pay expenses during the initial period will be replaced with levies raised at a meeting within 14 days of registration of the plan.
