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New strata title Bill to shape sustainable communities

  • Reforms to bring strata owners, residents, developers and managers a clear, transparent and accountable framework for creating and managing strata in WA
  • Two new forms of strata will offer affordable housing and vibrant community options
  • Significant new safeguards bring transparency and accountability to protect owners and buyers
  • New strata types to help deliver the METRONET station precinct vision

The introduction to State Parliament of the Strata Titles Amendment Bill 2018 and Community Titles Bill 2018 ushers in a new era of certainty for strata owners and buyers while providing an opportunity for developers to invest in new types of strata.

Community schemes, a new type of strata successfully employed in other States, will be introduced to Western Australia making it easier to build the type of vibrant, diverse, liveable communities envisioned as part of the METRONET station precinct vision.

The reforms will also improve the management of strata schemes and offer fairer, simpler and cheaper dispute resolution via the State Administrative Tribunal.

Strata managers will be regulated to ensure transparency and accountability, and strata companies will have the power to terminate strata management contracts and obtain compensation where the strata manager breaches their statutory duties.

The legislation will also ensure transparency for owners who will have access to more information about their schemes and will have more of a say in how their scheme is run with the option to vote electronically.

Where there is a collective desire to renew ageing strata schemes, there will be provision for a fair and transparent process for the scheme owners to support terminating the scheme.

This will require a full procedural and fairness review, where one or more owners object. Owners who do not agree to a termination must not be left in a worse financial situation if a scheme is terminated and they can request a like-for-like replacement property nearby.

Strata subdivisions comprise roughly half of all new lots created in Western Australia, generating more than $10 billion of sales annually. Strata properties are not just residential units and apartments, they include retail and industrial units as well.

This much needed reform is the culmination of years of consultation and consideration, with additional safeguards for owners and buyers included since the McGowan Government took office.

Comments attributed to Lands Minister Rita Saffioti:

"This much needed strata reform is all about giving owners, buyers and the development industry a clear, transparent and accountable framework for creating and managing strata communities.

"The two new forms of strata - Community Titles and Leasehold Strata - will help greatly in building new communities with excellent transport links and good amenity.  They'll be the sorts of places where people will want to live and work.

"This legislation will help to deliver the METRONET station precinct vision with new ways to create low to medium density housing in creative and sustainable ways.

"People who live in strata, or who are considering living in strata, will be better informed and empowered to manage their schemes under the new Acts."

Comments attributed to Parliamentary Secretary to the Minister for Lands John Carey MLA:

"The introduction of these reforms are incredibly important to driving density in Perth, and ensuring we have modern strata laws which reflects the changing trends in apartment developments and living.

"But it also ensures better safeguards, and protections for residents and strata owners, by ensuring greater transparency and management of strata schemes, as well as greater accountability of strata managers."