Owners of Out-of-Date Strata Buildings May Be Freed to Accept Change 1/02/2010 A major stumbling block to change may be removed through the reintroduction of a policy paper advocating that a long held rule affecting strata property owners is out of date and needs revision.
The Australian Property Council has just recommended that the current policy that allows a single owner in a multi-unit block to obstruct the redevelopment of the premises be overturned.
Mr Richard Tooker, director of New South Wales Strata Management, addressed this matter in an editorial in December 2007 when he spoke out in support of the need to adjust the strata title laws to allow easier redevelopment of buildings that are well past their use-by-dates.
He suggested that the lowering of the existing 100 per cent threshold for redevelopment of strata titled buildings was outdated and due for change, and that it in some instances operated against the best interests of a majority of strata property owners.
Under the existing arrangement hold-outs are currently able to thwart redevelopment of many buildings too old or too badly run down to warrant mere remedial repair.
“There has been a genuine need for this to be changed. As things stand all the owners of a strata titled building must agree to a sale or redevelopment of the building before change can be implemented.
“This now outdated practice has led to the proliferation of instances where a single person can halt redevelopment hopes held by a large majority of owners.
“Adopting a majority rule would be highly beneficial to owners of old buildings. The building sites themselves are often highly valuable and in prime locations and could bring their owners considerable gain through either major renovation or total redevelopment,” Mr Tooker says.
Mr Tooker’s company is one of the largest strata management companies in New South Wales and oversees the management of many old blocks on highly valuable land. Many buildings he says have become virtual dinosaurs that could benefit from a redevelopment of their site.
“Many of these buildings are aged 50 years or more and occupy highly valuable land. Unfortunately for some there are instances where a single intractable person blocks any change, stymieing the hopes of the other owners.”
According to the Australian Property Council as many as 65,000 strata buildings are deemed in need of serious overhaul.
The recommendation is for the strata title laws to be adjusted to accommodate change when 75 per cent or more of the total number of the building’s owners were in agreement.
Mr Tooker, while supporting the move toward change is also highly aware
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.
“But I am heartened by recommendations that include measures that safeguard the rights of these owners and the use of independent valuations for owners that might object to redevelopment. The needs of all parties must looked after.”
“We’ve experienced a threefold rise in the number of people living in strata titled accommodation over the past decade. And those working to keep abreast have been kept busy ensuring that the Strata Schemes Management Act remains up to date with modern needs and concerns.”
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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