Western Australia's new Strata Titles Amendment Bill 2018 and the Community Titles Act 2018 will make redevelopment of ageing apartment buildings easier, says the Property Council of Australia WA.
The rules, dubbed the "Boot a Granny Bill" by opponents have passed WA parliament. Several WA industry groups have lobbied for change to the State’s strata rules for more than a decade, including the Real Estate Institute of Western Australia (REIWA).
REIWA President Damian Collins congratulated Landgate and the Western Australian government for passing the legislation, stating the reforms will finally bring strata communities into the 21st century.
“We have been a vocal advocate for strata reform over the last decade, providing the real estate industry’s perspective on the proposed reforms during the lengthy consultation period following the work of REIWA’s dedicated Strata Reform Committee," Mr Collins said.
“Once implemented, the new legislation will provide a more streamlined and transparent system for everybody involved in strata living. This includes better dispute resolution, clearer obligations for strata managers and a fairer and more robust system for the termination of schemes."
"Property Council of Australia WA Executive Director Sandra Brewer says modernising the laws has been the Council's biggest priority.
“Modernisation and streamlining of strata titles law and the introduction of community titles and leasehold tenure have been a key priority for Property Council members for many years, and it is terrific to see the strata titles law finally adopted,” Ms Brewer said.
“This law will improve the way WA strata schemes are developed and managed, and along with the Community Titles legislation, will provide for the development of new and innovative housing options and greater housing choice,” she told WILLIAMS MEDIA.
“In combination with the State Government’s new urban design policies and planning reform initiatives, the new strata law will allow redevelopment of strategic and well-located housing sites and replacement of the current ageing buildings. These will be replaced by modern, well-designed homes that are sensitive to the environment and to the feel of the streetscape and the local neighbourhood. This will benefit residents and the wider community and we are delighted that the legislation has now been adopted," Ms Brewer said.
Under the old rules, a 100 per cent agreement was required for the termination of a strata scheme to allow ageing units or apartments to be redeveloped - creating a scenario where just one owner in favour of terminating a scheme to allow redevelopment could prevent this from happening.
In recent months, the legislation has risked being derailed by a perception that new termination provisions would undermine the property rights of existing strata owners.
“The Property Council has worked hard to address this assertion by demonstrating to community stakeholders, Members of Parliament and the Legislative Committee that the Bills were drafted to provide a far more transparent, legible and equitable process for termination of a strata scheme than currently exists,” Ms Brewer said.
“In fact, allowing 80 per cent of the owners of a strata scheme the right to vote for the dissolution of a scheme, with the matter then determined by SAT, provides 80 per cent of owners with rights they currently don’t have,” Ms Brewer said.
“It is our view that the new laws, with the enhanced safeguards included through the Parliamentary process, provide an equitable and reasonable approach that delivers natural justice for all parties. Creating an effective and fair termination process is critical to allowing redevelopment of many ageing strata properties across WA,” said Ms Brewer.
The successful implementation of strata reform will have broad community benefits as government and industry will be able to deliver greater housing diversity, affordability and choice, and make more efficient use of land and services to provide better living options for Western Australians.
“It is imperative the WA Government puts enough focus and resources behind Landgate to quickly and effectively draft the regulations to ensure the new legislation is able to be put into practice as soon as possible,” Mr Collins told WILLIAMS MEDIA.
The laws will come into effect in late 2019.
Visit the Landgate website to read more about the bills.
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