Experts call on state government to review BCCM legislation
The peak body representing Queensland’s multi-billion dollar strata title sector wants to see changes in the law to assist thousands of people finding themselves trapped as owners in rundown apartment blocks that may now be costing them more to maintain than it would to knock down and rebuild.
According to James Freestun, president of Strata Community Australia (Qld) there is a recurring issue in the industry when strata communities and apartment complexes begin to age beyond their use-by date, however owners within the community cannot agree to sell. “The simple fact is many buildings in Queensland were built to last a minimum of 20 years and often they don’t last much longer than that,” Mr Freestun said.
According to Mr Freestun, it is often in the best interests of all owners to sell a complex to a developer and have it re-built but this process can create a whole range of issues. “The issue with the current legislation around selling strata communities to developers is that it requires resolution without dissent, so even if 99 owners in an apartment block want to sell, all it takes is one person to refuse and the sale won’t go through.
“Or, as sometimes happens, the majority of owners agree to sell to a developer at a certain price but a small number of owners refuse and hold out for a higher selling price. This slows the whole process down and means that some owners are receiving a much higher price than others. So, the system is not promoting fairness,” Mr Freestun said.
SCA Qld is calling on the Queensland government to follow the lead of other Australian states and review the legislation around resolution without dissent in strata communities. “We would also encourage the government to look outside of Australia at systems that have worked when selling strata communities in other countries.
“An effective method that I know of in Singapore takes into consideration a building’s age. For example, if a building is less than ten years old, 90% of owners need to agree to sell. However, if a building is more than ten years old, only 80% of owners need to agree to sell. Another option is for owners to ‘package’ a strata community and then go to market, rather than waiting for developers to approach them. This is a public process and it helps to ensure owners receive the best offer and all owners get a fair share of the selling price.
“You will always get people referring to the Australian film The Castle with this kind of issue. We are in no way suggesting people should be kicked out of their homes but it is often in their best interests to sell, particularly if their home is costing them extortionate amounts of money to maintain.”
The New South Wales government has recently published a discussion paper on a number of issues in the strata industry, including the issue of resolution without dissent with regards to selling strata communities to developers.
AccomNews is not affiliated with any government agency, body or political party. We are an independently owned, family-operated magazine.
