Update on strata reform
Update on strata reform
Although full details are yet to be released, the proposed changes seem positive and will benefit owners and residents in strata titled schemes, as well as provide more options for the future development of WA.
The reforms will be addressing the following areas:
- Clarified roles for strata companies, strata councils and strata managers, which will ensure that everyone involved in the management of a scheme can reference the legislation to understand their duties and obligations.
It will also impose duties on strata managers which will help improve the professionalism and consistency of the industry. Given the strata management industry is unlicensed (unfortunately the reforms will not change this), this will be a valuable addition to the legislation and will hold strata managers accountable.
- Better use of technology in meetings and voting.
- Increased jurisdiction of the State Administrative Tribunal to allow for clearer and easier dispute resolution.
- Increased disclosure requirements for potential buyers to include additional details, such as more information on levies, strata manager contracts, insurance, and information on the financial position of the strata company.
- A Unanimous Resolution for terminating schemes will no longer be required. The reforms aim to make changes so that a termination requires at least 75 percent of proprietors or their registered mortgagees to vote in favour of the termination, followed by a full review by the State Administrative Tribunal to assess the fairness of the proposed termination.
- Simplified process for staged developments (where a development is undertaken in more than one stage over a long period of time).
- Introduction of Community Title Schemes. This is a new type of strata title which will allow for multiple strata titled schemes on one parcel (or even within one building) that will sit under an overarching body corporate. For example, developers will be able to develop schemes where several separate apartment buildings share the same common facilities.
- Introduction of Leasehold Strata. This will allow the long term leasing of strata lots (21 to 99 years) rather than ownership. This is unlikely to affect standard residential and commercial strata schemes, however it will provide a useful option for institutions such as universities.
For more details on the reforms, please visit Landgate.
If you’d like to find out more about the proposed changes please contact us on +61 8 9429 5777 and ask to speak to Kara Grant, Head of Strata Management or you can email Kara below.