This year the NSW government is conducting a review of strata laws. The current laws are too complex, and often unfair at balancing the rights and obligations of owners, residents and the community.
The first round of community consultation has closed, and the submissions so far highlight the concerns you would expect – pets, parking and parties.
However an interesting issue is developing - how to force those last few unit owners hanging on to sell their units to a developer when everyone else has sold. Currently a strata plan can only be cancelled (and the building demolished) with consent of 100% of the owners. If the number is reduced to 90% or less, that would be a pretty radical thing for Australian property law.
There is a social agenda here, as many buildings are simply too old or badly built to meet our needs. Or they're really ugly. However, with the 100% consent currently required, it is incredibly unlikely that those properties will ever be redeveloped. Those dodgy buildings will be with us for a long time, or at least until they fall over.
As many buildings become unusable, this reform is inevitable. And a good thing.
What we are really interested in is how the price the recalcitrant owners must accept is determined. Where this is in place overseas, in most countries an independent valuation is used. But what about owners who sold earlier in the process for above 'market value' because the developer was desperate for the site?
This is one worth watching – it will impact the development market massively. And make some grannies really grumpy.
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