Backlash over proposed reforms to body corporate legislation to make it easier for unit blocks to be sold

Groups representing unit owners have hit out at planned reforms to allow the sales of ageing unit blocks, saying they could be abused by ‘unscrupulous’ developers. FULL DETAILS

Two groups representing Gold Coast unit owners have come out against a proposed change to body corporate law that would allow ageing blocks to be sold to developers if 75 per cent of owners agree.

In a submission to the state government the Unit Owners Association of Queensland (UOAQ) said the proposed change to legislation, announced by Attorney-General Shannon Fentiman last month, could see owners turfed out of their homes if deep-pocketed developers snapped up enough units.

“Given the reason for the proposed reform is to ‘make it easier for units to be redeveloped’, one can surely envisage a developer with billion-dollar resources able to swiftly displace the long settled retirees from their long term abode in a sought after seaside suburb,” they wrote.

“As if developers do not already have far more power and influence than to change the law to make it even easier for them. The proposed reform represents corporate bullying at its worst.”

Attorney-General Shannon Fentiman. Picture: NCA NewsWire / Dan Peled

Announcing the reform, Ms Fentiman said there would be “safeguards” to allow dissenting owners challenge the termination of schemes in court.

“If the body corporate approves a termination plan, a dissenting owner will be able to make an application to the District Court, which would consider a set of just and equitable factors in deciding whether the termination should proceed,” Ms Fentiman said.

However the UOAQ, which has approximately 5000 members, questioned whether owners would have the resources to mount a legal challenge.

“The real issue lies in whether a regular property owner has the financial means and backing to challenge the might of a billion dollar corporate developer in the courts – of course not,” they said.

Concerns were also raised by the Main Beach Association, which said it feared the protections for dissenting owners could be “manipulated by unscrupulous body corporates and developers”.

The Association, in acknowledging that the reform is intended to see ageing and rundown buildings replaced, questioned whether it would have the unintended consequence of incentivising bodies corporate to limit maintenance.

“For example, in cases that we know of, where a building is in perfectly sound condition, the body corporate is threatening dissenting owners that they will no longer carry out maintenance in order to ensure that the building does become rundown,” they wrote in their submission.

“There are many buildings in Main Beach that are close to 40 years old and, because they were well built and have been diligently maintained by their body corporate, are still in excellent condition.

“What will prevent a compromised body corporate from deliberately neglecting essential maintenance?”

The reforms to Body Corporate and Community Management Act, which will also make it easier for bodies corporate to ban smoking in communal areas and for owners to keep pets, have been backed by other groups including the Strata Community Association (Qld) and Australian Apartment Advocacy.

It is expected the Bill to reform the legislation will be introduced into parliament in the first half of this year.

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Originally published as Backlash over proposed reforms to body corporate legislation to make it easier for unit blocks to be sold