Following the 2022 Housing Summit, the Attorney-General and Minister for Justice, Women and the Prevention of Domestic and Family Violence (The Honourable Shannon Fentiman) has announced this year the Queensland government will draft proposed changes to current body corporate laws which would see owners in run down apartment blocks with greater access to options to sell and redevelop their complexes.
Currently, in order for a scheme to be sold for redevelopment and the scheme terminated in Queensland, every single owner must give their consent to that process. If just one owner does not agree for any reason – the sale and redevelopment currently cannot proceed.
What it Means…………………..
Whilst the exact wording of the legislation is yet to be drafted, circulated for community consultation, amended and ultimately voted on by the Government – ideally changes to the law have the potential to allow:
- An ability to collectively sell to a developer where at least 75% of the owners wish to take that route;
- An increase in potential housing stock to assist with the current dire lack of housing;
- Getting rid of outdated and no-longer fit for purpose buildings with leaky roofs, significant cracks, foundational issues and no sinking fund to rectify these issues; and
- For public infrastructure and public transport to be upgraded given developers are required to pay for those upgrades as part of the construction and certification process;
In New South Wales owners have had the collective sale option open to them since 2015, with redevelopment and strata renewal plans vetted by the Office of Fair Trading before being progressed through to the NSW Land and Environment Court for consideration, that Court having the ability to reject the plan if need be.
The NSW Office of Fair Trading and NSW Land and Environment Court look at whether the proposed plan is “just and equitable” along with whether it was developed in good faith. Owners must receive “at least” market value for their property.
It is open to the Queensland Government – in drafting the legislation – to look at the relatively few NSW cases to date and learn any lessons before committing Queensland down this path.
Stay tuned for further updates as they arise.