Strata Law Change Could Serve Owners Well 2/12/2007 Mr Richard Tooker, director of New South Wales Strata Management, has spoken out over recent proposals to change strata title laws to allow easier sale or redevelopment of buildings that are well past their use-by-dates.
Late last year proposals were tabled that suggested lowering the current 100 per cent threshold for redevelopment of strata titled buildings.
“Yes, it’s true that under the current arrangement all the owners of a strata titled building must agree to a buildings sale or redevelopment. This sees instances where one person can halt redevelopment hopes held by a large majority of owners. This is rather an old formula and perhaps there is now a need for greater consultation and perhaps a change. Further discussions could examine the matter in detail, and perhaps there is room to adopt a majority rule,” Mr Tooker says.
Mr Tooker’s company is one of the states largest strata management companies and he agrees that there are many old blocks that have become virtual dinosaurs.
Many, he says, are aged 50 or more years old and occupy highly valuable land. In a number of cases the buildings owners could benefit either through the sale, redevelopment or the creation of an entirely new structure better suited to the site.
“There are instances where the owners of an aged block could benefit greatly, but were stymied by a single intractable person.”
Mr Tooker is quick to add that that some of the very old buildings have resident owners who are themselves senior, and he understands their reluctance to accept change of any kind.
“Some live in what these days would almost be substandard accommodation but resist suggestions that allowing redevelopment of the site could be made easy for them. There have been instances where a majority of owners favour redevelopment and where excellent accommodation is on offer to house those temporarily displaced by renovation or development. Once the rebuilding is accomplished the owner can move back, into a far superior level of living than they had lived in previously.”
There have been instances too, he says, where a developer offers two units for one. This can see an owner move back into a new suite, with a second provided for the owner to either on-sell or rent.
“During redevelopment the developer arranges temporary accommodation, leaving the owner in a win-win situation. They live well during the reconstruction period than move into their new apartment and have a second to rent, sell or do with as they please.”
Mr Tooker says he is not an advocate of change, but is rather a professional who sees a need for those directly involved with ownership or development to come together to investigate how current laws might be better adapted to suit current conditions.
“We’ve seen such a tremendous increase in interest, and a threefold rise in the number of people living in strata titled accommodation over the past decade. And, I must say that planning authorities, along with the NSW Office of Fair Trading, which overseas the Strata Schemes Management Act, have worked diligently in serious attempts to help keep The Act up to date with modern needs and concerns.”
Mid-last month the law-change issue was under consideration by the NSW State Government. It was then reported that reforms had been proposed by Frank Sartor, the Planning Minister that included a lowering of the current 100 per cent threshold. This matter did not go forward at that time but a revisit to the issue is highly likely.
Mr Tooker says reconsideration of this issue would be a welcome step forward.
New South Wales Strata Management (formerly Gilmour Strata Management) commenced business in early 1991, as a member of the highly respected J A Gilmour & Sons group of companies. Licensed solely and specialising only in strata management services, the company has steadily grown to become one of the largest such organisations in New South Wales.
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