Change to Queensland Strata Laws: Is the “Castle” revisited?
3 mins reading time
Despite pages of recommendations for changes to strata laws submitted by Queensland Law Society’s Property and Development Committee (of which our lawyers actively participate), the State Government has decided to focus its efforts on addressing a singular issue within the Property sector. This change, perhaps unsurprisingly, addresses the drastic undersupply of accommodation in Queensland.
Given the current climate, a change of some kind can be expected, however, allowing a vote of 75% of owners to enable termination of a scheme (and sale to a developer for redevelopment) will have significant implications to property owners across the state.
Changes to strata laws: The bad news
The bad news argument is akin to the movie “Castle” where an owner did not want to give up their property for expansion of an airport. Many will recall the owners lawyer pleading that it was the “vibes” of the legislation to avoid forced sale.
As currently drafted 100% of owners must agree to sell their unit if a developer wishes to acquire an old property and redevelop into something larger. As an owner you have an indefeasible right to your property. Often, there is good reason why someone does not want to sell – they may have lived in their beachfront apartment for many years and the view and amenity cannot be easily replaced. As an owner should you be forced to sell when you don’t need or want to?
Changes to strata laws: The good news
The good news argument is that there are many underutilised sites particularly in and around the Southeast Corner of Queensland that, if freed for development, would go some way to addressing the under supply of housing.
The development community, often rightly, notes that many of these “old” buildings are in need of repair and are inefficiently designed. The other issue is that the development community asserts that the need to purchase 100% of units artificially increases the site purchase cost with some owners holding out for the “best” price. Of course, owners say this is simply their right to receive the best price as a potentially “unwilling” seller.
The proposed change: What’s next
The proposed change has two steps requiring the Body Corporate to resolve that it is more financially viable to terminate the scheme then to repair or remediate and for 75% of owners to agree to terminate. There is no draft legislation yet, so the final requirements for the new rules may change.
Perhaps this is a case of the benefit of the many outweighing the loss of their “Castle” by a few.
If you have any questions on the proposed change to strata laws, reach out to our Queensland Property team.
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Change to Queensland Strata Laws: Is the “Castle” revisited?
Despite pages of recommendations for changes to strata laws submitted by Queensland Law Society’s Property and Development Committee (of which our lawyers actively participate), the State Government has decided to focus its efforts on addressing a singular issue within the Property sector. This change, perhaps unsurprisingly, addresses the drastic undersupply of accommodation in Queensland.
Given the current climate, a change of some kind can be expected, however, allowing a vote of 75% of owners to enable termination of a scheme (and sale to a developer for redevelopment) will have significant implications to property owners across the state.
Changes to strata laws: The bad news
The bad news argument is akin to the movie “Castle” where an owner did not want to give up their property for expansion of an airport. Many will recall the owners lawyer pleading that it was the “vibes” of the legislation to avoid forced sale.
As currently drafted 100% of owners must agree to sell their unit if a developer wishes to acquire an old property and redevelop into something larger. As an owner you have an indefeasible right to your property. Often, there is good reason why someone does not want to sell – they may have lived in their beachfront apartment for many years and the view and amenity cannot be easily replaced. As an owner should you be forced to sell when you don’t need or want to?
Changes to strata laws: The good news
The good news argument is that there are many underutilised sites particularly in and around the Southeast Corner of Queensland that, if freed for development, would go some way to addressing the under supply of housing.
The development community, often rightly, notes that many of these “old” buildings are in need of repair and are inefficiently designed. The other issue is that the development community asserts that the need to purchase 100% of units artificially increases the site purchase cost with some owners holding out for the “best” price. Of course, owners say this is simply their right to receive the best price as a potentially “unwilling” seller.
The proposed change: What’s next
The proposed change has two steps requiring the Body Corporate to resolve that it is more financially viable to terminate the scheme then to repair or remediate and for 75% of owners to agree to terminate. There is no draft legislation yet, so the final requirements for the new rules may change.
Perhaps this is a case of the benefit of the many outweighing the loss of their “Castle” by a few.
If you have any questions on the proposed change to strata laws, reach out to our Queensland Property team.