Press Release

FOR IMMEDIATE RELEASE

STRATA LEADERS CAUTION ACT GOVERNMENT AGAINST INTRODUCING CONTROVERSIAL NSW REFORMS

Australian Capital Territory -

Media Release | INTERVIEW OPPORTUNITY AVAILABLE

Wednesday 20 November, 2019

Attention Michael Bleby

STRATA LEADERS CAUTION ACT GOVERNMENT AGAINST INTRODUCING CONTROVERSIAL NSW REFORMS

CONCERNS IT MAY NOT BE SUITABLE FOR THE TERRITORY

Strata leaders in the ACT are concerned reforms which have largely failed in NSW may be pushed through by the ACT Government against the advice of industry stakeholders in a bid to shakeup strata laws in the nation’s capital.

The peak body for units, apartments, townhouses and other strata titled property in the Territory, has cautioned the ACT Government against introducing proposed reforms that may uproot people from their homes.

Strata Community Association (ACT) President Chris Miller says, “We’ve been working with the ACT Government on its wider strata reform package and we welcome most of the proposed changes to existing laws, with the exception of a forced sale scheme.

“This scheme is being considered by the ACT Government to advance re-development of ageing apartment buildings. However, since being introduced in New South Wales three years ago, these controversial reforms have been largely ineffective.”

The first collective sale was given the green light in August this year, three years on since mandatory collective sales were allowed in New South Wales.

Mr Miller says, “The ACT Government needs to consider the financial and emotional implications of a forced sale scheme if it doesn’t work in the ACT.

“In New South Wales, most of the attempted mandatory sales have been dragged through the courts. This experience can be financially and emotionally taxing for all those involved; add to that the uncertainty faced by dissenting owners who don’t want the sale to proceed.

The current laws in the ACT require all owners to agree on the sale of a building.

“Under this proposed scheme, only a majority of 75 per cent would need be required, leaving a 25 per cent minority of dissenting owners with no option but to vacate their homes.

“While they receive fair compensation, these laws fail to take into account the uniquely personal nature of home ownership and property rights.

“If the ACT Government proceeds with this proposed scheme, we are concerned the desired outcome of land re-development will not actually be achieved, while at the same time giving rise to protracted disputes among unit owners in what are usually small, tight-knit communities.

“A better solution might include a mandatory mediation process whereby cost benefit analysis have a chance to positive pursue reluctant sellers.”

ENDS

About

About Strata Community Association

Strata Community Association Limited (SCA) is the peak industry body for Body Corporate and Community Title Management in Australia & New Zealand. Membership includes body corporate managers, support staff, committee members and suppliers of products and services to the industry. SCA proudly fulfils the dual roles of a professional institute and consumer advocate.

SCA has in excess of 3,300 members who help oversee, advise or manage a combined property portfolio with an estimated replacement value of over $1.2 trillion. Website: http://stratacommunity.org.au/

(ENDS)

Contact Details

Media Contact:
Chris Miller
President
Strata Community Association (ACT)
0400 376 208

Released by:
Pat McGuire
Marketplace Communications
0412 748161
Patrick.mcguire@mpc.com.au

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