UOAQ Recommendations to Government for Change to Strata Law
| Gold Coast Bulletin – Editorial – 4 September 2019 TIME FOR CHANGE “THE Gold Coast is home to about 50,000 units; another 60,000 properties are classified medium density. A large proportion of those home owners are living under strata title and collectively pouring millions of dollars into body corporate fees every year for general maintenance, grounds work and sinking funds. And, as a series of reports by the Gold Coast Bulletin has highlighted, it is causing problems. Apartment buildings are becoming toxic communities as warring neighbours hijack agendas and complex managers hang on to lengthy contracts. All the while, committee members – many of whom are unqualified to handle the sort of money being thrown at them – are largely doing their best to juggle the chaos. It is time for change. The Body Corporate Act is archaic and needs to be reviewed as the population boom pushes more people into apartment buildings. Two major unit associations, the Unit Owners Association of Queensland and the Strata Owners Speak Out group, say modifying the legislation would allow disputes to be settled faster and with less upheaval; restrict the length and power of management rights contracts; and provide better education and safe guards for committee members who are not trained lawyers or accountants to confidently run body corporates. Thousands of people are migrating to paradise every year for our weather, clean lifestyle and pristine beaches. In reality, what some of them are walking into is a living hell. We need to turn on the light and have a mature debate to help end that nightmare.“ |
During the final quarter of 2020, UOAQ undertook a survey, with over 1,700 participants, to generate contributions from the strata community, views and opinions to demonstrate to government, regulators and community participants, and provide informed input.
The results of that survey are here.
UOAQ is asking the government to undertake a wider professional inquiry to more comprehensively understand the depth and complexity of problems the strata community face.
To all Queensland Lot Owners in CTS Schemes
The above articles appeared in the Gold Coast Bulletin during September 2019. For many years, the UOAQ has been actively working to achieve change for the benefit of all impacted unit owners.
The first initiative was to have the government establish a review of strata law, particularly management rights (MR).The deputy premier wrote to UOAQ on 25 October 2020 advising that should the Labour party be re-elected that review would be provided. On 18 February 2021, the government advised that a working group would be established to address strata issues. The UOAQ is now participating in a process that the Gold Coast Bulletin called for in September 2019.
Much of the problem stems from the Body Corporate and Community Management Act 1997 (the Act), providing developers with an unnecessarily disruptive financial gain, and an imbalanced dispute resolution process. What was considered in 1997 by legislators and regulators as “the best strata law in the world” has turned out to deliver underperforming contractors and toxic communities. This Act fails to deliver the Secondary objects established in Section 4 of the Act.
The 2021 UOAQ – Owner Survey, recently released, shows significant support for change.
A history of poor outcomes and disharmonious lifestyles over the past 25 years is clearly demonstrated in the UOAQ – Owner Survey. The UOAQ is asking the government to undertake a wider professional inquiry to more comprehensively understand the depth and complexity of problems the strata community face, including the cost impost and a benchmark with other States.
UOAQ has established that failure of Local Government to enforce Planning and Building law has compromised owners property rights, confirmed by their conveyancing solicitor at the time of purchase of the property, and these rights are eroded to favour developers, letting agents and caretakers. These issues have been identified in the document Seven Problems for Owners in Strata Properties.
Schemes trying to address the deficiencies created by MR have spent millions of dollars in QCAT with no results. There has not been a single scheme achieve success for their owners through this process in the past 10 years. Strata lawyers now claim that half of their revenue comes from MR disputes.
The UOAQ recommendations are: that to achieve the outcomes necessary to avoid the continuance of toxic communities and underperforming contractors and comply with Section 4 Secondary objects, the following must be addressed by government:
- Developers be prevented from selling management right agreements.
- Development approvals under the Planning Act 2016 and Certificates of Classification issued under the Building Act 1975 be fully respected and enforced. No short-term letting in Class 2 residential buildings
- MRs contracts be limited to 3 years with reciprocal termination provisions, providing 14-day notice from either side. No top ups or extensions, and subject to tendering at time of review.
- Building office established/located on common property.
- Managers would no longer be required to purchase their positions. Open market competitive tenders will achieve a better result.
- Scheme self-management of letting arrangements.
- Existing MR agreements respected to the lawful term. 25-year terms established in schemes not qualifying for Accommodation Module would be unlawful. Compensation options for unlawful sales. Contract extensions gifted by owners, be reviewed to be subject to competitive tendering.
The fully extended version of the recommendations are here.
Please offer direct support and provide input and additional recommendations here.
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