Strata Reform: What You Need To Know
Located in: Blog
The recently announced strata reform aims to provide more flexible and sustainable housing options and improve the way strata schemes work, whilst not changing the current strata owners’ land titles and boundaries.
These are some highlights on the changes you can expect;
- The use of technology in meetings and electronic voting.
- Greater transparency of the financial and insurance status of the strata company.
- An increase in the minimum insurance required for strata public liability.
- The ability to develop lease hold land as a strata, with the land owner retaining freehold title to the land and granting a 99 year lease.
- Streamlining of disputes within strata companies and an expansion of the powers and scope of the State Administrative Tribunal (SAT)
- More detailed information on strata companies to be provided to potential buyers and in a simplified form.
- One of the major reforms proposed is the ability for older strata schemes that have valuable land holdings to more readily terminate the current strata when being sold to a developer. To date a unanimous resolution by all owners was required. Under the proposed changes to the Strata Titles Act 1985 a resolution supported by 75% of owners will allow the proposal to be presented to SAT for review. The SAT will review the resolution along with other guidelines, procedural fairness, ongoing costs of maintaining the strata, impact on all owners and fair market compensation for all owners.
While some of this may seem confusing, Mark Hay Realty’s Strata team are well informed of the changes and can assist with any questions you may have or be able to direct you to the correct source for the information.
March 15, 2016
Posted in: Blog