strata in wa

Overview session

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 in WA

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

What’s changing

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


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


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


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


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


strata.wa.gov.au

Stage 3: Confirmation by the SATPart 12 of the Act


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


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


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

Questions?

strata in wa

Documents