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Strata title reform gathering pace

  • January 19, 2016

Strata title reform gathering pace 

Following strata title reforms passed by the NSW Government in October last year, the WA Government has followed suit with a plan to proceed with reforms to the state’s strata title system in 2016.

The WA Minister for Lands Terry Redman (pictured) announced in late December that the government will proceed with reforms of the state’s strata title system – a move warmly welcomed by the property industry.

“The proposed reforms to the Strata Titles Act are long overdue and fully supported by the Property Council,” Property Council WA executive director Joe Lenzo said.

Cabinet has given approval for the drafting of a new Bill to amend the Act, and the Minister intends to introduce the amended legislation to State Parliament in spring 2016.

The reforms aim to provide more flexible and sustainable housing options to benefit developers, strata owners, investors, residents and tenants and will include:

  • Introduction of two new types of strata title – Community Title and Leasehold strata schemes over freehold land
  • More flexibility for staged strata development
  • Improved and simplified information given to buyers before they sign a strata purchase contract
  • Faster resolution of strata disputes
  • Improvement of regulation of strata managers by imposing key duties and obligations they must perform.

As with the NSW reforms, the proposed WA reforms also advocate for a 75 per cent majority vote for the termination of schemes, with protections in place for owners. 

“This means those wishing to redevelop ageing buildings will face fewer hurdles, making way for modern and more sustainable dwellings across Perth,” said Lenzo.

As well as NSW and WA, other states are preparing to overhaul their strata laws. The Victorian Government is considering the 75 per cent threshold in its review of strata title legislation, in South Australia an inquiry is underway, while the Giles Government in the Northern Territory is drafting a proposed review of strata laws.

More details about the WA reforms are available from Landgate.