The much-anticipated StrataTitles Act 1985, also known as the stratareforms, will come into effect as of Friday 1 May.
REIWA strongly supports the new legislation andworked closely with Landgate and the WA Government to ensure that the real estateindustries concerns were taken into consideration.
The reforms will bring strata communities intothe 21st century and is expected to not only accommodate the shiftin housing preferences over the years, but also introduce new land developmentto options to drive economic growth.
A breakdown of the changes is listed below. Fora detailed understanding of each item, view Landgatessummary of whats changing.
Better buyer information
For those who are looking to buy into a strataproperty, agents will be required from the 1 May 2020 who provide buyers withmore information using a single form which includes including:
- Estimated strata levy contributions over a 12-month period.
- The most recent statement of accounts of the strata scheme.
- Any amount already owed to the strata company by the current lotowner.
- The minutes from the most recent annual general meeting of the stratacompany or any extraordinary general meeting thats been held since.
- A full set of the schemes by-laws.
- Information about any termination proposal received by the stratacompany.
More efficient dispute resolution
As of1May 2020, all new disputes will be heard in the StateAdministrative Tribunal (SAT), existing disputes will continue in the originalforum.
The SAT will have broader powers to resolve strata scheme disputes andenforce by-laws.
The only exception to SATs role as the one-stop-shop for stratadisputes is the recovery of unpaid levies which are still to go through thecivil courts.
A fairer process for scheme termination
The terminations process has been amended to allow for majorityapprovals in some schemes.
For schemes of four lots or less the decision to terminate must beunanimous for the termination to proceed.
For schemes of five lots or more, a comprehensive series of safeguardsare now in place including an independent review by the SATif there areany dissenting owners.
The new process also includes a more streamlined approach for when alllot owners agree about terminating the scheme.
Improving strata management
Starting on Friday 1 May 2020, amendments to the following sections willbe in effect in order to improve strata management and by-laws:
- Changes to by-laws.
- Ten-year maintenance plan.
- Embracing modern technology.
- The role of the strata manager.
Introducing leasehold strata
A leasehold strata title is a built strata or survey-strata scheme witha fixed term of between 20 and 99 years. As of1May 2020, plans forleasehold strataschemes can be lodged with Landgate.
In leasehold scheme each lothas a lease of between 20 and 99years, with all lots ending on the same day. This will be utilised to provideaffordable housing in strategic sites such as round train stations.
Greater flexibility for staged subdivisions
The reformed Actmakes it clear when the consent of owners isrequired to change the way a scheme is being developed. On1May2020, schemes will no longer require a management statement.
Details of staged development will now be set out in the scheme by-lawsand are called staged subdivision by-laws. The changes ensure the rights of lotowners who have already bought into earlier stages of the scheme are protected,while making the process less cumbersome for developers.
