Strata Reform in Western Australia

Introduction

The WA State Government has given Landgate responsibility for delivering strata reforms to Western Australia.

There has been no major reforms to the Strata Titles Act 1985 (WA) in the last 21 years and, given how strata has developed and evolved, strata reform will be well welcomed.

The proposed reforms aim to:

1. provide more flexible and sustainable housing options to benefit strata owners, residents, tenants, investors and developers; and
2. improve the way strata schemes work, but not to change current strata owners’ land titles and boundaries.

Information of the reforms can be found on the Landgate website at this link.

Summary of the proposed reforms

There are seven areas of strata reform which will be delivered as a package comprised of the Strata Titles Amendment Bill 2017 and the Community Titles Bill 2017, namely:

1. Community title schemes
2. Leasehold strata
3. Improved staging of strata developments
4. Improved management of schemes
5. Simplified dispute resolution
6. Better buyer information
7. Safeguards for termination of schemes

Information on the proposed reforms

1. Community title is a new type of strata where multiple sub-schemes exist under a community title scheme which will
   • deliver large scale precinct sized developments requiring flexible staging;
   • share the cost of more amenities across sub-schemes;
   • deliver activity centres (Metrohubs) where people live, work and play;
   • mix residential, retail and commercial uses within one vibrant community; and
   • combine uses with close proximity to workplaces, infrastructure and public transport creating better community lifestyles, rather than just housing developments.
2. Leasehold strata is a new type of strata where the strata scheme is for a fixed term (more than 20 to 99 years). Owners have a long term lease of a lot and the scheme is set up to:
   • provide affordable housing options; and
   • develop university land to deliver innovation hubs as a vehicle to grow jobs and educational opportunities.
3. Staged strata will enable existing strata schemes which are developed in stages to be delivered faster and cheaper by providing greater flexibility to vary those schemes and by cutting some of the red-tape faced by developers when consent to plan variations is required.
4. Improved management of schemes will make strata better for the public by:
   • strata managers will be regulated and made more accountable to carry out comprehensive statutory duties that will be imposed upon them;
   • building changes such as the installation of solar panels on common property will be easier; and
   • strata owners will benefit from improved management procedures.
5. Simplified dispute resolution by:
   • making the State Administrative Tribunal (“SAT”) the one-stop shop for strata disputes; and
   • strengthening SAT’s powers to efficiently resolve strata dispu.
6. Giving better buyer information will give people buying into strata better information about their strata lot. The disclosure form will give guidance on important issues to consider about strata. Some of the better information buyers will receive include details of strata levies, a statement of the strata company accounts and a copy of the scheme by-laws.
7. Introducing safeguards for termination of schemes will require a transparent process to be properly followed along with a full procedural and fairness review by SAT. At the moment, termination can be ordered with just one owner applying to the District Court.

Disclaimer: The information on this page is intended to be general information only and NOT legal advice. No responsibility is accepted for any errors or omissions.