Queensland has introduced fresh strata regulations with the aim of promoting the revitalisation of underutilised apartment sites.
The new legislation permits the termination of a community titles scheme with the approval of 75 per cent of lot owners, provided the body corporate agrees it’s economically unviable for lot owners to maintain or repair the scheme.
The determination of economic viability must be supported by reports from independent professionals, and accessible dispute resolution services will be in place to ensure fair and appropriate use of the new process.
Housing Minister, Meaghan Scanlon said “there are cases where a majority of owners want to sell but even a single person can stop them from being able to make that collective decision about their property”.
“This Bill is about weighing the rights of people who want to facilitate new housing projects and terminate expensive, uneconomic title schemes, while also providing protections and safeguards for lot owners.
“Stakeholders made it clear at the Queensland Housing Summit that scheme termination was a key area that required reform to help support getting more supply into the market.
“These changes will make it easier for underutilised sites to be redeveloped for more housing, which is good news Queenslanders looking for a new home.”
Property Council Queensland Deputy Executive Director Jess Caire explained that the reform will increase the supply of well-located housing and respond to concerns of residents in older apartment buildings that are increasingly costly to maintain.
“The Property Council have advocated for a reduction in Queensland’s unanimous strata termination threshold for over a decade and it is really the low hanging fruit in terms of responding to the housing crisis,” Ms Caire said.
“Other states have embarked on strata reform and Queensland has done so with safeguards and consumer protection provisions that go above and beyond what has been put in place in other jurisdictions.
“In Queensland and in particular areas like the Gold Coast there are countless older apartments that are beyond repair and are likely to become financial sinkholes for residents.
“This reform will help ensure that if the majority of residents chose to do so and the scheme is deemed economically unviable to maintain, that they are able to wrap up their scheme and unlock the capital from their unit.
“In the midst of a housing crisis it a commonsense change and the Queensland laws come with numerous safeguards to assuage the fears of those who believe they will be used to pressure people out of their homes.
“Instead, if the majority of unit owners wish to sell and an independent report is undertaken that deems the building uneconomical to maintain, they will no longer be locked into an older, unsafe and expensive building by a single solitary lot owner who does not want to sell.
“Moving forward, the Property Council hopes that the process for terminating a community title scheme is not costly or arduous for owners so additional safe and fit for purpose housing supply can be delivered as soon as possible to relieve pressure on our housing market,” Ms Caire said.
Formerly, if a contract featured a sunset clause, developers had the authority to terminate a sales contract for an ‘off the plan’ land purchase if it wasn’t settled within a specified timeframe. The recent laws restrict when property developers can utilise these clauses.
Following the enactment of the Bill, developers can only invoke a sunset clause to terminate ‘off the plan’ land contracts in three specific situations: with the written consent of the buyer, under an order from the Supreme Court or in a situation outlined by regulations.
These changes apply to new ‘off the plan’ land contracts and those awaiting settlement.
The new laws also include reforms to:
- allow bodies corporate to make by-laws that prohibit smoking on common property or an outdoor area such as a balcony, and to clarify smoking as a nuisance, hazard or unreasonable interference
- prevent bodies corporate from making by-laws which create a blanket ban of pets in community titles schemes
- clarify and enhance the ability for bodies corporate to tow vehicles from common property in a timely manner
- allow an adjudicator to approve to put in place alternative insurance for a body corporate, when it cannot comply with the required level of insurance for particular buildings
- enhance by-law enforcement and access to records in layered arrangements of community titles schemes
- enhance the code of conduct for body corporate managers and caretaking service contractors
- clarify and streamline body corporate administrative and procedural matters
- make minor clarifying amendments to confirm when deposits can be released to developers under ‘off the plan’ contracts.