Strata Reform Gains Momentum

Strata reform gains momentumQUT’s independent property law review, commissioned by the State Government, has released its recommendations in relation to body corporate by-laws, debt recovery and scheme termination.The Property Council has been a longstanding and vocal advocate for strata reform in Queensland, strongly criticising the current requirement for unanimous consent to terminate a community title scheme.The Property Council’s submission to the property law review highlighted that the current legislation places financial and safety risks on owners, and holds back urban renewal in our major centres. Without reform, Queensland runs the risk of losing investment to other states that have adopted, or are looking to adopt, a 75 per cent termination threshold.Among the 29 recommendations in the QUT report is the development of a prescribed procedure for scheme termination in the Body Corporate and Community Management Act 1997. QUT have proposed that this should involve the collation of relevant structural and valuation information, the appointment of a termination facilitator and the development of a termination plan.Importantly, QUT have recommended that when this proposed process establishes an ‘economic reason’ for a scheme termination, the support of only 75% of owners should be required to approve a termination. Under the proposal, dissenting owners may appeal the decision in the District Court.QUT’s report also recommends new measures to improve the ability of bodies corporate to enforce by-laws and recover unpaid debt.Last year the Property Council commissioned Griffith University to produce their own report into Queensland’s strata laws, which outlined the nature of the unanimous consent problem and recommended a move to 75% termination threshold.Before determining a response to the recommendations, the Government is seeking public comment by 5 May 2017.