How will proposed changes to body corporate laws affect you?
- From: Gold Coast Bulletin
- June 27, 2015
A radical change to strata-title laws have been proposed. Picture: Regi Varghese Source: News Corp Australia
GOLD Coast unit owners have reacted strongly to a radical proposal to change strata-title laws that could see homes sold out from under them.
The Bulletin revealed this week that Attorney-General Yvette D’Ath was considering a push from the Property Council of Australia to allow just 75 per cent of unit owners to decide if a building is to be sold or not. At present, it needs all owners to agree.
‘GREEDY’ UNIT OWNERS FORCED TO SELL
Below are examples of how the changes could affect you, as sourced from a series of proposals compiled by Queensland University of Technology law professor Bill Duncan for the Property Council of Australia and Strata Community Australia submitted to the government.
DORRIS DOE, 85, ELDERLY LIFESTYLE OWNER
Elderly unit owners could be affected. Source: GoldCoastBulletin
Q: I’ve been living in my unit by the beach for 27 years and don’t want to sell. I’ve got so many memories here and at my age I don’t care about the money. But what are my options? Would I be forced to sell if a developer offered my body corporate committee a lot of money?
A: The proposed legislative changes would give unit owners the power to appeal an unfavourable body corporate vote but ultimately you would have to fight the decision in court.
The proposed changes do take into consideration special circumstances like the health of the unit owner who wishes to stay.
If that request was rejected by your body corporate you would be forced to sell or fight the decision in court.
Real estate business owners have their questions answered. Source: GoldCoastBulletin
BARRY DREDGER, 55, OWNS A BILLION-DOLLAR REAL ESTATE EMPIRE
Q: I have big plans for an old 100-unit high-rise in Surfers Paradise but a couple of greedy unit owners are holding out for more money. The place is rotten, full of concrete cancer and it is better for everyone that is comes down.
Why should I be forced to abandon plans for a beautiful and modern high-rise because one person refuses to sell? If so, how is that fair to the other 99 unit owners who are eager to get paid out and start again?
A: The reforms would allow you to force the last unit owner to sell but you may be required to offer them a larger sum of money to compensate.
Under current laws bodies corporate have been known to successfully compel a “holdout” owner to sell through legal action.
Last year, Nobby’s Outlook on the Gold Coast was facing a $3.8 million repair bill (about $100,000 per owner). One person was holding up the decision to sell until the body corporate applied to the District Court for a termination order. The dissenting owner eventually agreed and the deal was able to progress.
How will the changes affect a body corporate chairman? Source: GoldCoastBulletin
JOE BLOGGS, 42, BODY CORPORATE CHAIR FOR AN OLDER 80-UNIT BEACHFRONT HIGH-RISE
Q: Our building has become infected with concrete cancer and if we want to stop chunks of concrete falling to the street we will need a couple of million dollars for repairs.
There are a couple of wealthy unit owners who are not bothered but the majority want to sell the site and start again. Will we be able to sell the high-rise if these reforms are approved?
A: If 75 per cent of unit owners agree to sell you can force those against the idea to sell. They may chose to fight you in court to appeal the decision but the law will be in your favour.
Laws could differ for properties with few owners. Source: GoldCoastBulletin
KIM TELLER, 25, OWNS A UNIT IN A 2-STOREY WALK-UP IN KIRRA
Q: A developer has approached everyone who owns a unit on our block with an offer but I’m not interested in selling. There are only four owners so will I be forced to sell if the other three want to cash out? How can I work it to ensure I stay.
A: The proposal has taken into consideration strata title properties with very few owners. Nothing specific has been proposed but one option could be to retain the 100 per cent agreement threshold for buildings with less than 20 owners.
It could also be staggered meaning a building with 30 owners would need 90 per cent in agreement while one with 50 owners would only need 80 per cent.
How would it affect families? Source: GoldCoastBulletin
SARAH LENTON, 45, WIFE AND MOTHER WHO BOUGHT IN AN ESTATE TWO YEARS FOR LIFESTYLE AND SCHOOLS
Q: We love it here. It has a tennis court and pool for the kids and the layout of the complex, with single-storey townhouses and roading, allows the children to play safety.
However, we’ve just had a big wig developer knock on our door saying he’s looking for a majority of people to sell so he can develop the land. What can we do to stop the developer from buying our home against our will?
A: The developer would need to convince 75 per cent of lot owners to sell but if they do, you would have no choice other than blocking the sale in court.
It could prove costly for you and the developer would have a better case.
You could also make an appeal to your body corporate on behalf of your children to block the sale.
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