Revealed: Massive changes to body corporate rules

Hold-outs will no longer be able to block the sale of unit blocks and rules around smoking and pets will change under massive reforms announced by the state government. FULL DETAILS

RADICAL changes to body corporate legislation will make it easier for unit blocks to be sold to developers under reforms announced by Attorney-General Shannon Fentiman.

Currently, just one owner can prevent a unit scheme from being sold for redevelopment.

However the changes announced on Thursday morning will allow for the termination of community titles schemes with the support of 75 per cent of lot owners where the body corporate has agreed it is the most financially viable option.

The reforms will also see new rules around smoking, allowing bodies corporate to make by-laws that prohibit smoking in outdoor and communal areas of a community titles scheme.

Pet owners will be protected by changes that will prevent bodies corporate from banning pets in community titles schemes, except in specific circumstances.

Attorney-General Shannon Fentiman. Picture: NCA NewsWire/Tertius Pickard

Ms Fentiman said the new legislation addressed key areas that needed reform.

“I’ve heard many stories of rundown units, townhouses or complexes with unsustainable ongoing maintenance costs where owners want to terminate, but a single owner blocks this from occurring,” Ms Fentiman said.

“The Government recognises that some owners may not wish to sell their unit or move to a new home so termination arrangements must balance the rights and interests of all lot owners in a scheme.

“The new process will include safeguards to protect owners in the minority who do not support termination. 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.

“We also know that pets are important to many Queenslanders and that, as more people choose to live in community titles schemes, keeping animals is an increasingly pertinent issue.

“Second-hand smoke can be a serious concern, and these laws will ensure that bodies corporate are able to make more substantial decisions about the health and wellbeing of residents.

“We are delivering on our commitment to consult on changes to Queensland’s community titles legislation and will continue working with the Community Titles Legislation Working Group to consider further reforms, like management rights, bullying, and harassment.

“This is the first of two planned packages of reform for body corporate legislation in Queensland. I intend to introduce the second package of reforms before the end of the year.”

Strata Community Association QLD general manager Laura Bos. Picture: AAP image/David Clark.

Strata Community Association (Qld) General Manager Laura Bos said news of the reforms, revealed to industry stakeholders by Deputy Premier Steven Miles at a UDIA breakfast on Thursday, would be particularly welcomed on the Gold Coast.

“I am absolutely thrilled to see Deputy-Premier Miles announce today that he and the Attorney-General will be moving to legislate to reduce the requirements for scheme termination from 100% of lot owners giving consent to 75% of lot owners,” Ms Bos said.

“In established parts of all Queensland’s major cities there are schemes that are simply not making full use of the land they take up. There is a capacity for us to better use of these existing development footprints in these existing urban areas, particularly along public transport spines without impacting amenity.

“This change will make it much easier to renew our urban areas with well designed strata

development which will benefit all members of our community.

“It just makes sense to use land which is already being used for housing to create more stock, it is much more economically efficient than greenfield development and is a critical part of protecting our environment.”

Ms Bos said whilst the property sector broadly was happy with this change, some of the biggest winners from this change would be young Queenslanders who would look to buy their first home in a few years.

“As a mother of three children this fills me with optimism. This is the sort of change that will allow them to remain in Queensland and own their own home or rent affordably,” said Ms Bos.

“All Queenslanders will benefit by making it affordable to come here. Young people with ambition and born in Queensland will be able to afford to stay, and young people from down South will see Queensland as their opportunity to plant roots and create community.”

Ms Bos also welcomed the proposed changes to rules regarding smoking and pets.

“Changes providing clarity on pets and smoking are particularly significant,” she said.

“This guidance we hope will treat the epidemic of disputes these two issues cause and contribute to body corporate harmony.

“... Second hand smoke is extremely dangerous and people should be protected from it at all costs.

“Since the Artique decision in early 2022, which was a landmark legal case, the strata community broadly has been crying out for positive change in this regard and we are pleased the Government has delivered.”

Deputy Premier Steven Miles. Picture: Annette Dew.

Mr Miles, in his speech at the UDIA event, said the reform allowing 75 per cent of lot owners to terminate community titles schemes was especially important in areas like the Gold Coast.

“In some local government areas, the only way to achieve new development is to demolish existing multi-unit dwellings. Such as parts of the Gold Coast,” Mr Miles said.

“Existing body corporate rules which require unanimous agreement of unit holders have allowed single owners to block developments. In some cases, the result has blocked or impeded development of whole city blocks.

“Today the Attorney-General and I announced the Government will draft legislation to change body corporate legislation to allow for the termination of a community titles scheme with the support of only 75 per cent of lot owners.

“This will apply where the body corporate has agreed it is more financially viable for lot owners to terminate rather than maintain or remediate the scheme.

“The new process will include safeguards to protect owners in the minority.”

Australian Apartment Advocacy CEO Samantha Reece. Picture: Keith Woods.

The reforms were also strongly welcomed by Australian Apartment Advocacy CEO Samantha Reece.

Ms Reece said she was aware of schemes on the Gold Coast where sales had been blocked by just one owner.

“We had one scheme of five units at Palm Beach where they were approached by three separate developers,” Ms Reece said.

“They were offered $12m but one person blocked the sale

“And now with the changes proposed by the AG these apartment owners can benefit and move on with the next chapter in their lives.”

The Property Council’s Queensland Deputy Executive Director, Jess Caire, said the reforms would see old apartment buildings redeveloped.

“The Property Council has championed this reform since 2016 and congratulates the State Government on the urgent and immediate series of actions they are undertaking to resolve the housing crisis,” Ms Caire said.

“In Queensland, in particular areas like the Gold Coast there are countless unit blocks that are in dire need of redevelopment, they are small, underutilized and some are beyond repair, posing safety issues for the residents.

“These reforms will mean that the vast majority will now be able to wrap up their strata schemes and unlock the capital from their unit and access safe, fit-for- purpose housing.

“This will do much to address the current housing crisis and will facilitate urban infill and ensure sites are utilized to their full potential.”

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

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Originally published as Revealed: Massive changes to body corporate rules