Download - Strata in WA
strata.wa.gov.au
Landgate presenters
Graeme Gammie
Chief Executive
Glenda Kirkby
Strata reform analyst
Timing 45 minute presentation
15 minutes panel discussion
Topics
• Strata in Western Australia
• What’s changing
• How to find out more and
have your say
Today’s session
strata.wa.gov.au
• The Act was made in 1985
• Today, there are over 320,000 strata
lots in WA – 80% in the metro area
• More than half of new land subdivisions
are strata titled
Strata in WA
Stirling 58,223 15,685
Melville 18,679 6,066
Perth 18,169 704
Bayswater 17,560 4,689
Canning 15,780 4,140
Cockburn 13,472 2,795
Victoria Park 12,575 3,054
South Perth 12,170 2,565
Joondalup 10,855 3,171
Mandurah 10,440 2,053
Top ten local government
areas by strata lots Strata lots Strata schemes
Strata snapshot | Perth
strata.wa.gov.au
WA’s new strata laws
Community
Titles Act
2018
Strata Titles
Act 1985
(amended 2018)
strata.wa.gov.au
Strata Titles (General) Regulations 2019
Regulations The LawThe Act
+
Regulations describe how to comply with the Act
We need your feedback on the consultation draft regulations
=
Timeline for change 2019
September Public consultation on strata regulations
2 to 17 September Community information sessions – Perth and regional
October / NovemberReview feedback and deliver final regulations
- the Strata Titles (General) Regulations 2019 - to Parliament
TBC: November
onwards
New strata law is proclaimed and comes into operation
- after the regulations have progressed through Parliament
strata.wa.gov.au
Buyers will receive more complete information about the strata
property they’re looking to buy - allowing them to better compare
properties and make a more informed decision
Better buyer information
Most relevant to:
strata.wa.gov.au
Buyers will receive more complete information about the strata property they intend to
buy including:
• Lot information including unit entitlement and scheme by-laws (currently required)
• Scheme notice (new)
• Last AGM minutes (new)
• Scheme account statements (new)
• Estimated levies (new)
Circumstances where buyers can avoid the contract have been clarified
Better buyer informationPart 10 of the Act
Part 13 of regulations
strata.wa.gov.au
Strata managers will - for the first time in WA - receive a legislated
framework of responsibilities to guide them in their role
Improved strata management
Most relevant to:
strata.wa.gov.au
A clear framework of responsibilities to guide strata managers in their role
• Strata managers will need a management contract
• Volunteer managers will need a volunteer agreement
• Both will need to disclose commissions and benefits
• Clear guidelines on what’s required when maintaining the trust accounts
• Minimum standard education requirements
Strata managementPart 9 of the Act
Part 12 of regulations
strata.wa.gov.au
Disputes will be resolved more efficiently and at less cost with
the independent State Administrative Tribunal becoming the
‘one-stop-shop’ for strata disputes
Simplify dispute resolution
Most relevant to:
strata.wa.gov.au
Strata disputes will now have a much better chance of resolution, at a faster rate and
lower cost
• The Tribunal is less formal and has more flexible procedures than traditional courts
• It’s designed to provide a more appropriate and timely means to obtain administrative justice
• Visit sat.justice.wa.gov.au
• Debt recovery (e.g. taking action to recover any unpaid levies) will still be dealt with in the
courts.
Dispute resolution Part 13 of the Act
strata.wa.gov.au
By-laws have been modernised and will be clearer and fairer
Improved by-laws
Most relevant to:
strata.wa.gov.au
• Standard by-laws are still found in schedule 1 and 2
• They are now called Governance By-Laws and Conduct By-Laws respectively
• Some Governance by-laws are now part of the Act - so they can’t be changed
• Some by-laws have been removed - because they were considered discriminatory
• When any changes to existing by-laws are lodged a process to consolidate all by-laws into one
document will be required
By-laws Part 4 | Division 4 of the Act
Part 8 of regulations
strata.wa.gov.au
A new process will soon guide the collective sale or redevelopment of strata
schemes – known as a scheme termination.
This will include safeguards for all strata owners and be overseen by the
independent State Administrative Tribunal.
New terminations process
Most relevant to:
Part 12 of the Act
Part 14 of the regulations
Developers
strata.wa.gov.au
A maximum of three stages:
Stage 1: Outline Termination Proposal
Stage 2: Full Termination Proposal
Stage 3: Confirmation by the State Administrative Tribunal (SAT)
Scheme terminationsPart 12 of the Act
Part 14 of regulations
strata.wa.gov.au
The Outline Proposal is a summary of the termination,
describing:
• What will be done to the land
• Funding the proponent is offering to provide for advice
The Strata Company meet, negotiate (if desired) and then
vote
If 50% or more vote yes, the proponent has a maximum of 12
months to come back with a Full Proposal (Step 2)
Stage 1: Outline Proposal Part 12 of the Act
Part 14 of regulations
The Full Proposal includes:
• Contracts of sale for each lot
• Details of new development
• Termination Infrastructure Report
• Sworn valuation for each lot
The Strata Company meet, and vote
• Unanimous Yes (100%) – straight to termination
• Majority Vote Yes (80% or more) – State Administrative Tribunal
(5 lots or more)
• Required majority not reached - Proposal rejected
Stage 2: Full Proposal Part 12 of the Act
Part 14 of regulations
strata.wa.gov.au
Stage 3: Confirmation by the SATPart 12 of the Act
Part 14 of regulations
The State Administrative Tribunal will review:
- The process followed
- Full proposal
- Submissions from dissenting owners
• The Proponent pays for legal and ancillary services for
dissenting owners
• Any vulnerable owners will be provided with extra
assistance – e.g. an interpreter and financial guidance
during the process
• The SAT to ensure owner(s) are left no worse off
strata.wa.gov.au
Property developers and investors will receive more support and certainty
when developing a scheme in stages - through greater flexibility in the
staged development of strata and survey-strata schemes
Staged strata subdivision
Most relevant to:
Developers
• Addition of staged subdivision by-laws to replace the existing Management
Statement
• Clearer definitions of significant variations and consent requirements
• Streamlined consent from mortgagees
Staged strata subdivisionVarious places in the Act
Part 6 of regulations
Providers of affordable housing
Owners of conditional tenure land
Strategic developers
Leasehold is a new form of land ownership for Western Australia –
supporting more affordable housing options and the development of
key strategic sites
New - leasehold strata
Most relevant to:
Living in a leasehold scheme will be similar to a freehold strata – except that a
leasehold scheme has a fixed lifespan
After the expiry of the scheme, the land and buildings return to the owner of the
leasehold scheme
It will make more effective use of land that currently cannot be developed.
Leasehold strataVarious places in the Act
Part 9 of regulations
Strata Titles (General) Regulations 2019
STA (General)
Regulations 2019
Strata LawStrata Titles Act 1985
(amended 2018)
+
• Regulations describe how to comply with the Act
• We need your feedback on the consultation draft regulations
=
strata.wa.gov.au
The proposed regulations are
available to view and comment on
Visit strata.wa.gov.au
See department.justice.wa.gov.au for
guidelines on how to read legislation
Have your say on strata regulations
strata.wa.gov.au
Subscribe for email updates on
key developments:
Visit strata.wa.gov.au
Recorded sessions from today will also be
available via this website
For more information
strata.wa.gov.au
In-focus sessions | Today
Riverview Room 5 - Perth Convention and Exhibition Centre
Time Subject
10:10am – 11:10am Better buyer information and strata renewal
11:20am – 12:20pm Strata management
12:50am – 1:50pm By-laws and dispute resolution
2:00pm – 3:00pm Introducing leasehold strata
3:10pm – 4:10pm Strata development