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Termination of CTS

Developers call for Queensland BCCM law changes to force unit owners to sell

UOAQ objectives.

  1. To raise the level of quality in the building of strata developments.
  2. To ensure that the properties are properly and fully maintained through the life of the building.
  3. To ensure that the rights of all owners are respected and equitable for 100% of owners in a scheme.

Currently to amalgamate and extinguish existing strata title lots the Queensland Body Corporate and Community Management Act 1997 (BCCM Act) requires:

  • All owners (100%) in a strata titled scheme to unanimously consent to a collective sale of their lots, or
  • A court order to terminate the community title scheme.

Campaign for change.

The Property Council of Australia (PCA) is campaigning to change the requirement for unanimous consent. The PCA members (property developers) will be the greatest beneficiaries of their redevelopment approval reduction recommendations from 100% to 75% of owners’ agreement.  Even the high population density, land scarce cities, such as Singapore, have an over 80% minimum approval threshold.  Applying the PCA recommendation, three owners in a 4-unit block could overrule one owner automatically. This could be the case with developers who hold existing unit holdings, as they do in many sites up and down the prime coastal sea-front such as the Gold Coast.

The PCA argument for lower than 100% owner agreement in strata title is that existing unit blocks are “heavily dilapidated” and “rapidly deteriorating assets”.

Construction Quality.

What does it say about the quality of building construction of unit developments if they must be demolished after 30 to 40 years?  Could it be the outcome of a lack of consumer protection laws, which may require increased builder warranty periods to raise building standards?  Alternately, has a lack of any construction quality assessment scheme and control regulation created the major numbers of defects the PCA claim or has industry self-regulation in property construction failed strata title consumers and their communities?

How do 100-year-old heritage listed buildings remain standing in excellent condition while new buildings with the latest building materials, methods and technology become "dilapidated, beyond restoration, often becoming safety hazards" (PCA quote) within just a few decades?

Introduction of new comprehensive regulation of construction standards and stronger enforceable consumer laws are required to protect strata title consumers.  UOAQ, as a member of the Consumer Reference Group of the Queensland Building and Construction Commission, is recommending increased warranty periods on new buildings with the objective of improving building quality.

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