Strata Reform
The WA State Government has given Landgate responsibility for delivering strata reforms to Western Australia.
The proposed reforms aim to provide more flexible and sustainable housing options to benefit strata owners, residents, tenants, investors and developers . They aim to improve the way strata schemes work but not to change current strata owners’ land titles and boundaries.
As Minister for Transport; Planning; Lands the Hon Rita Saffioti has said publicly, we aim to introduce the new legislation into Parliament in mid-2018 to give industry certainty and clarity as soon as possible.
The strata reform team is now focused on working with the Parliamentary Counsel’s Office to get the legislation drafts done quickly whilst ensuring the legislation is fit-for-purpose because as our state grows, more people explore the option of strata living, investors look to expand their portfolios, and communities look to diversify housing options.
Once drafted, and approved by the Government, the reform Bills will be laid before Parliament and will be accessible to the public.
REASONS FOR REFORM
Based on current trends, it is predicted that Western Australia’s population will increase to over five million by 2056.
There is a need for more housing to cater for the predicted population increase including more innovative housing options, while also meeting urban infill targets. Strata is important to the WA economy; there are more than 300,000 strata lots, which are conservatively estimated as being worth $170 billion. This number is increasing, with 40 to 50 per cent of all new lots created being strata. Annual sales of strata lots exceed $10.9 billion.
Strata titles are not just about residential properties but also involve retail, commercial and industrial business premises. A more robust and updated legislative framework is needed to support strata title schemes in WA.
Landgate has been asked to deliver strata reforms as a priority to reflect more flexibility in strata developments and provide for better community environments.
There has been no major reform to WA’s strata legislation in 20 years.
BENEFITS TO STRATA LOT OWNERS
Improving the management of schemes
- strata owners will benefit from improved management procedures
- strata managers will be regulated and made more accountable to carry out comprehensive statutory duties that will be imposed upon them
- building changes such as the installation of solar panels on common property will be easier.
Simplifying dispute resolution by:
- making the State Administrative Tribunal (SAT) the one-stop shop for strata disputes
- strengthening SAT’s powers to efficiently resolve strata disputes.
Better buyer information
To assist buyers in assessing whether living in strata is the right move for them the reforms will give people buying into strata better information about their strata lot. The disclosure form will be easy to read and give guidance on important issues to consider about strata. Some of the better information buyers will receive include details of strata levies, a statement of the strata company accounts and a copy of the scheme by-laws.
Introducing safeguards for termination of schemes
At the moment, termination can be ordered with just one owner applying to the District Court. The reforms will introduce safeguards requiring a transparent process to be properly followed along with a full procedural and fairness review by SAT.
THE SEVEN AREAS OF REFORM
There are seven areas of reform which will be delivered as a package comprising the Strata Titles Amendment Bill and the Community Titles Bill.
- Community title schemes
- Leasehold strata
- More flexible staged strata development
- Improved management
- Simplified dispute resolution
- Better buyer information
- Safeguards for the termination of schemes
Once drafted, and approved by the Government, the reform Bills will be laid before Parliament and will be accessible to the public.
For more information go to the Landgate Website https://www0.landgate.wa.gov.au/titles-and-surveys/strata-reform
- Source Landgate
