E-News Edition 6 2015
Christmas Party & Awards SCA (WA) E-NEWS
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FEBRUARY
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APRIL
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JUNE
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AUGUST
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OCTOBER
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DECEMBER
Experience the Perrott difference
www.perrottpainting.com.au
E-News INDEX 2
Perrott
3
Index
4
Kleenheat
5
Strata Snapshot – Park Legal Solutions
6
CHU Christmas
7-8 9
Letter to Premier – STAR Reform Letter from Premier
10
BCB
11
Office News
12
SCI Christmas
13
Office News
14
External Works
15
Office News
16
Programmed Property Services
17
Al the CAT – Penthouses on the Rise
18
Landgate – Section 43 Fees
19-26
Strata Community Awards
27
Life Members
28
Longitude Insurance
29-31 32
Media Release – Pets in Strata Buildings Tunnel Vision
33-35
AL the CAT – Proposed changes to WA
36-37
SCA (WA) Sponsors
38
Advertising and General Info
39
Member Update
40-41
2016 PD Calendar
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Strata Snapshot February 2016 Common Property Maintenance – how far do you need to go? ____________________________________________________________________________ The Western Australian Supreme Court of Appeal decision of Drexel London (a firm) v Gove (Blackman) [2009] WASCA 181 (Drexel) highlights the extent of the Strata Company’s duty to maintain common property under section 35(1)(c) of the Strata Titles Act 1985 (WA) (STA). ____________________________________________________________________________ On New Year’s Eve 1996, a balcony collapsed at 1 of 8 strata-titled lots which were developed from the conversion of a late-Victorian industrial building, which caused injury to 35 visitors to the building. The injured visitors sued the Strata Company (amongst others) alleging that it breached its statutory duty to maintain the balcony which was part of the common property. The trial judge dismissed the proceedings against the Strata Company. However, that decision was appealed, culminating in Drexel. It emerged at trial that the balcony collapsed because the owner-builder of the development substituted structural grade jarrah (allowed for in the specifications) for oregon timber which became weakened by rot and because the balcony design did not include an appropriate level of construction redundancy to prevent its progressive collapse. The Court of Appeal decided that the Strata Company’s duty under section 35(1)(c) of the STA to repair defects to its common property was enlivened when and if the Strata Company knew or ought to have known about the defect. Based on the evidence, the Court of Appeal found that:
the Strata Company did not know about the defect to the balcony;
there was no reason for the Strata Company to suspect that the defect existed; and
there was no basis which required the Strata Company to arrange for a person with the: “necessary expertise” to identify all of the potential structural defects to the balcony, including the defect that caused the collapse.
Therefore, the Court of Appeal found that the Strata Company did not breach its statutory duty to maintain the common property. The above referred to “test” and recognition of the Strata Company’s “limited” obligation to inspect set out in Drexel have been discussed and applied in the following State Administrative Tribunal matters:
Clark and The Owners Of Waterfront Mews - Strata Plan 14082 [2011] WASAT 110
where the Tribunal found, amongst other things, that the Strata Company was in breach of its maintenance obligations because it failed to restore a gazebo to its “original painted finish” and remove graffiti on it. And, in respect of a pool insofar as it was not cleaned with: “sufficient regularity” and was: “allowed to fall into a state of apparent neglect”.
Stann and The Owners Of Beau Vista Strata Plan 12008 [2012] WASAT 227 where the Tribunal stated that, for example, if a gate deteriorates to such an extent that it fails to function as a gate, the strata company will be obliged to return the gate to a good functioning and serviceable state, although it need not restore the gate to an “asnew” condition.
Drexel underscores the importance that Strata Companies swiftly respond to and deal with any defects to common property upon them becoming aware of the defects, or else they could be in breach of their statutory duties to maintain their common property under the STA. For example, if any person notifies a Strata Company about any defect which could indicate the existence of a structural defect, Strata Companies should quickly engage a person with the: “necessary expertise” to inspect. Such defects could include, amongst others, water ingress from concrete slabs in the basement, large cracking in exterior or interior walls, cracking or rust in piers or support structures. Strata Managers should also consider the extent to which they could be liable to any Strata Company for any breach by it of its duty to maintain the common property under the STA under their Strata Management Agreements, particularly if they are drafted for general application and without appropriate exclusion clauses.
If you require advice about whether your Strata Company is complying with its statutory duty to maintain common property, or about any other Strata matter, please contact us at Park Legal Solutions on (08) 9221 6611 or at admin@parklegalsolutions.com.au
CHU would like to wish all our partners a safe & happy Holiday Season! The CHU offices will be closed from Friday 25th December and will reopen on Monday 4th Jan. In the event of an emergency please call the CHU Emergency No. 1800 022 444.
www.chu.com.au
2 November 2015
Honourable Colin Barnett Premier; Minister for State Development; Science Parliament House 1 Parliament Place WEST PERTH WA 6000
Dear Mr Barnett STRATA TITLES ACT REFORM Strata Community Australia (WA) Inc. is the peak industry body for people and organisations working in the strata titles profession and associated industries in Western Australia. We note that in October 2014 Landgate released a consultation paper regarding reforms to the Strata Titles Act 1985. The reforms proposed came to be known as “the STAR reforms.” Stakeholders were invited to make submissions in response to the consultation paper. We also note that many of the reforms contained in the consultation paper were the result of, in some instances, 10 years of consideration and work by committees convened by Landgate and comprising a wide cross section of industry stakeholders. SCA (WA) Inc. responded to the Consultation paper with broad support for the majority of the reforms proposed and suggestions for the refinement of the proposed reforms. SCA (WA) Inc. submitted the following general feedback on the Consultation Paper. 1. 2.
The reforms are essential to improving the future liveability of Perth. SCA (WA) Inc. is pleased that the Act is being reformed 30 years after it was introduced. There is a wealth of material available to Landgate from 20 years of dedicated work by volunteers and others to use as a strong base for reform of these inadequacies and errors in the Act. SCA (WA) Inc. recommends that the Act be renamed the “Strata and Community Titles Act 2016 (WA).” This way, the public will know what legislation deals with community titles. This name also accurately conveys the close relationship between strata titles and the concept of community titles. Similarly, SCA (WA) Inc. is keen to see “Strata Community Scheme” adopted in preference to “Community Titles Scheme”.
3. These reforms present the ideal opportunity to license strata managers. SCA (WA) Inc. again urges the government to license managers, using the same model as many other occupations. We understand that Landgate received submissions supporting the need for reforms from various industry stakeholders including the Property Council, REIWA and the Law Society as well as from many of SCA (WA) Inc.’s individual members. We last met with Bruce Roberts from Landgate on 18 June 2015. At that stage Landgate’s advice was that instructions had not yet been given to draft the bill. We have heard nothing since in relation to the progress of the reforms. Our members and industry stakeholders have done a great deal of work to provide input to government over several years on what is needed to modernise the Act, provide protection to consumers and their real property investments, and establish a basis for quality and affordable housing and living communities. The reforms have strong support from stakeholders and we commend the reforms broadly. We are therefore interested to know the current status of the reforms and seek your assurance that the timely progress of the reforms are a priority for the Government. Yours sincerely
STRATA COMMUNITY AUSTRALIA (WA) INC. Cc: Terry Redman, Minister for Lands – Minister.Redman@dpc.wa.gov.au Peter Tinley, Shadow Minister for Lands – willagee@mp.wa.gov.au Bruce Roberts, Landgate Bruce.Roberts@landgate.wa.gov.au Platinum Sponsors:
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Arranging insurance for a property close to the water and does this property have a jetty? Is the jetty shown on the Strata Plan, or is there an agreement with a local council that allows the owners use of the jetty under a lease? Is the Strata Company responsible for the upkeep of the jetty and does the Public Liability cover extend to jetty maintenance as part of the business description? Does your Strata Insurance policy provide full cover for the jetty and associated liability risks? Perhaps you have a property in the north west of WA, does the Strata Insurance policy have a significant excess for Flood or Named Cyclone? Are you aware you can reduce the excess for Named Cyclone and Flood for properties in the North West of WA with a Deductible Buy Down cover?
The Devil is in the detail Have you reviewed your Professional Indemnity cover recently, is it specifically tailored to protect Strata Managers? Managers experience all sorts of allegations and claims including bogus or troublesome claims from disgruntled owners, slip and trip claims from injured tenants and complex cost sharing allocation disputes.
Cyber Liability Premium Negotiation
Deductible Buy Down
Even in cases where the Strata Manager has done everything in their power to assist an owner, they may still be exposed to significant costs incurred in defending a claim and their reputation. Tailored cover from BCB is designed to protect Strata Managers. A key feature is cover for Managers and their employees when acting as Authorised Representatives or Distributors of Australian Financial Services Licence (AFSL) holders. With an increase in AFSL companies in the Strata sector, the situation has never been more complex. If you act for a number of different companies you will be required to understand what advice is to be provided to owners and how it is to be presented. Choosing to provide quotes to owners with no commentary or guidance may not adequately protect you from possible recourse in the event of a disputed claim.
Partner with a specialist broker BCB offer you access to specialist advice across a wide range of insurers for your owners plus our dedicated broking and claims staff help you cut through the complexity to protect your owner’s property and your own business assets.
Jetty Owners Liability
Flood Cover
Workers Compensation
Claim Negotiation
Merry Christmas – BCB is celebrating two years in W.A. With the approach of the festive season we want to thank SCAWA, our suppliers and all the Strata Managers and their fantastic staff for their support over the last couple of years. The dedication shown by them to the sector is inspiring and we are honoured to be part of the wonderful WA strata community.
If you would like to discuss any issues raised in this article, please do not hesitate to contact Nick Swallow of BCB WA by email at wa@bodycorporatebrokers.com.au or call on 9274 8004.
Office News Samsung Washing machine recall:Discussion took place during a recent PIAC meeting about the need for owners, lessors, property managers and strata managers to be aware of the potential dangers of Samsung toploader washing machines.
Less than 40% of people who have purchased a faulty Samsung top loader washing machine (2010 – 2013 models) have sought a refund/repair, therefore approx. 60% (6,000-7,000) machines remain in operation and are considered a fire hazard.
A second stage of education by the Department of Commerce will target owners and property managers of fully or partly furnished houses that could contain a recalled model about the potential fire hazard. IDA SMITHWICK, SCA (WA) Representative, Property Institute Advisory Committee
SCA (WA) would like to thank the 2015 outgoing Council and Committee Members for their volunteer Committee work . Their tireless work and professional support is essential to the Association. Thank you to John Angus, Life Member (retiring) and Henry Vurens van Es for your time and expertise. Thanks also to Council Members Ida Smithwick (retiring) and Kristy Ward for their enormous support on SCA (WA) Council, both will continue their Committee work.
John Angus, Life Member
Ida Smithwick
Henry Vurens van Es
Kristy Ward
The members only - free advisory line is open fortnightly on Tuesdays from 10-11am. The upcoming dates are:It is with great excitement that the Enterprise Portfolio and CBS announce the launch of four new online courses:
12, 26 Jan
- Certificate IV in Government - Certificate IV - Workplace Health & Safety - Diploma of Project Management - Diploma of Leadership & Management
8, 22 Mar
Courses commence 1st February 2016 Enrolments are now open
9, 23 Feb Become a Member Strata Owners can become a member of SCA (WA) by completing the Owner Member or Strata Company Lot form on our website www.wa.stratacommunity.org.au
Greetings Season’s
On behalf of the entire team at Strata Community Insurance, we’d like to thank SCA and all of its members for their
support throughout the year. We wish you all a wonderful Christmas and a Happy New Year. See you in 2016!
stratacommunityinsure.com.au
Office News SCA NATIONAL CONVENTION
Rachel Cosentino SCA (WA) President
External Works can look after all of your Strata external property needs. We understand Strata!
Let us do it all and save time and money! By using External Works for your Strata Property external maintenance you can: Save Money By consolidating numerous service providers to one provider gives the client the benefit of “economies of scale”.
Improve Planning EW will work with you to develop a 12 month program. The program is reviewed to ensure your requirements are being met. You don’t need to continually worry about things which may have been forgotten!
Increase Efficiencies All maintenance works are performed at one time and at a set interval rather than at random or at conflicting times. The property is always presented at its best!
Improve Budgeting EW provides you with a fixed contract price for a 12 month period. This enables easier cost recovery and alleviates cost blowouts at various times of the year.
But most importantly we take care of everything which allows you to concentrate on your core business!! ASK US NOW FOR A
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Office News SCA NATIONAL CONVENTION SCA (WA) has reserved group bookings for flights to Alice Springs for the SCA National Convention. To secure you place, selection you option and email admin@stratacommunity.org.au OPTION 1: 25th May - Leave Perth 12:25 Arrive Alice Springs 16:35 27/28th May - Leave Alice Springs 09:50 Arrive Perth 11:45 Flights Only = from $800 per person OPTION 2: 25th May - Leave Perth 12:25 Arrive Alice Springs 16:35 27th May - Leave Alice Springs 13:55 Arrive Ayers Rock 14:50 2 nights staying at the Voyages Desert Gardens Hotel Ayers Rock Sunrise Tour Uluru Base and Sunset Tour 29th May - Leave Ayers Rock 10:25 Arrive Alice Springs 11:10 1 night staying at the Aurora Alice Springs 30th May - Leave Alice Springs 09:50 Arrive Perth 11:45 Full Package = from $1760 per person, based on twin share OPTION 3: 25th May - Leave Perth 12:25 Arrive Alice Springs 16:35 27th May - Leave Alice Springs 13:55 Arrive Ayers Rock 14:50 2 x nights staying at the Voyages Desert Gardens Hotel Ayers Rock Sunrise Tour Uluru Base and Sunset Tour 29th May - Leave Ayers Rock 13:50 Arrive Sydney 17:20 2 nights staying at the Holiday Inn Darling Harbour 31st May - Leave Sydney 13:00 Arrive Perth 16:15 Full Package = from $1870 per person, based on twin share
Recruit. Deploy. Manage. Maintain.
MAINTAIN THE APPEARANCE OF YOUR BUILDING WITHOUT EMPTYING THE SINKING FUND. Repainting a strata complex doesn’t always mean a large sum of money upfront. Our long-term painting maintenance programmes enable you to get the work done when you need it coupled with flexible payment options. For instance, our popular Classic Programme allows you to get the bulk of work carried out upfront, while payment is evenly distributed over the entire life of the programme. Typically, a repaint of the property is carried out in the first year, while maintenance work, including washing and section painting, is carried out annually for each subsequent year of the programme.
Services Property Services Facility Management Electrical Technologies Construction & Maintenance Turnpoint Marine Workforce
Visit www.programmed.com.au/long-term-programmes to watch our video and find out more on the long-term maintenance programmes available. Otherwise phone 08 6218 6300 or email marketing@programmed.com.au for a noobligation, free quote on a maintenance programme that suits your property and budget.
08 6218 6300 programmed.com.au
While the Penthouse markets in Sydney and Melbourne are currently under-supplied, according to some industry experts, it’s a different situation on the west coast. But as Perth makes the gradual transition to apartment living, architects, developers and agents are turning their focus towards producing gasp-worthy sky homes to rival some of the best in the world. Award winning Perth architect David Hillam of Hillam Architects, who has created some of the city’s finest, cutting edge homes, has shifted some of his focus in recent years to the top end apartment market. Hillams designs for Lumiere, Southern Perth’s latest addition to the skyscape, has already caused some controversy and will definitely succeed in standing out from its more conservative counterparts. The new development will sit on a prized pocket of this exclusive riverfront precinct and will include two spectacular, double level penthouses with panoramic river and city views. The project was 60 per cent sold within three weeks of launching, an impressive result given Perth’s slowing market. The buyers are predominantly owner/occupiers, the majority of whom have been drawn directly from South Perth and surrounding suburbs who are moving from large riverside homes in the area. Mr Hillam says, although Perth has been slower to take up high-density living than our eastern states counterparts, he believes the city has reached its limit in terms of urban sprawl. Edited, for full version copy link: http://www.domain.com.au/news/perth-penthouses-on-the-rise-20151119-gku9yq/
SCA (WA) 2015 Christmas Party and Awards Night Perth Mint - 26th November 2015 What a night it was and the highlight of the year in SCA (WA)’s calendar! We all agree that the chosen venue, The Perth Mint, was the perfect setting for SCA (WA) 2015 Christmas Party and in particular the Inaugural Awards Ceremony. The night was enjoyed by 140 people – an enthusiastic group of strata professionals and service suppliers and we would like to thank all those who came together socially to celebrate the end of the year with the deserved winners and finalists of the SCA (WA) Strata Community Awards. Taking home the trophy for the chosen award categories were:Kara Grant, Blackburne – SCA (WA) Young Strata Manager of the Year 2015 Dyani Cobbold, Strata CBD – SCA (WA) Strata Manager of the Year 2015 Blackburne – SCA (WA) Strata Management Business of the Year 2015
Kara Grant, Blackburne Young Strata Manager of the Year 2015
Dyani Cobbold, Strata CBD Strata Manager of the Year 2015
Blackburne Strata Management Business 2015
We thank our Awards Sponsor, Park Legal Solutions, and congratulate the winners of the night. Given on the great feedback received by those in attendance, there is no doubt that the SCA (WA) Strata Community Awards Night will have now a firm place in the annual events calendar of our Association and we hope that this event will grow bigger over the coming years setting the bar of professionalism and excellence in our industry. A big thank you to our Sponsors of the Christmas Party - Rockend, Longitude Insurance and Toploaders WA. Such an event always requires a lot of planning, organisation and consideration and I would like to thank our Office Manager, Suellen Bottecchia and her Administrative Assistant, Jo Wallington, for their hard work in bringing such a great event together and my fellow committee members, our President Rachel Cosentino and Council Member Warren Kiddle for their input and ideas for our inaugural awards night and the chosen judging panel. Judging Panel: John Park - Park Legal Solutions Rachel Cosentino - Slater & Gordon Lawyers and SCA (WA) President Suellen Bottecchia - SCA (WA) Office Manager Brook Durling - Business & Govt Sales, Landgate
Thank you to all those attending the SCA (WA) Christmas Party and Awards Night – and congratulations again to the winners of the night. We look forward to celebrating a magical night again in 2016 when SCA (WA) is holding its 2016 Symposium and Awards Cocktail Night in November 2016. Marietta Metzger, magixstrata, Vice President of SCA (WA)
Christmas Party Sponsors:
AWARD WINNER DYANI COBBOLD, STRATA CBD SCA (WA) STRATA MANAGER OF THE YEAR 2015
AWARD WINNER BLACKBURNE - SCA (WA) STRATA MANAGEMENT BUSINESS OF THE YEAR 2015
AWARD WINNER KARA GRANT, BLACKBURNE– SCA (WA) YOUNG STRATA MANAGER OF THE YEAR 2015
Colleen Wilson and David Tilley of Toploaders WA presented their prize draw to Jamie Daniels of Exclusive Strata Management
Jesse Borthwick of Longitude Insurance presented the lucky prize draw to Zoe Hollins of Pro-Active Strata Management and Sandra Glossop of Ace Body Corporate Fremantle Christmas Party Sponsors
LIFE MEMER AWARDS
SCA (WA) President presents the Life Member Awards to new Member Beverley Grigo and John Angus. Awards also presented to Life Members Michael Powell 1998, Ian Laird 2007, and Sheryal Griggs 2011
John Angus accepts his Life Member Award
SCA (WA) LIFE MEMBERS Ian Laird, Sheryal Griggs, John Angus (accepted on his behalf by Janine Chapman ), Beverley Grigo
Smarter Strata Insurance Australia-wide. Strata Insurance Products – It’s not all about price! With the strata market continually growing in WA and high competition amongst Insurers, it is extremely important for brokers, strata managers and owners councils to be aware of what they are purchasing. Yes, we all want the most competitive price for our Insurance, however at what cost. The strata products available on the market today vary greatly in coverage and benefits alike. Please be aware that when deciding on which product and which Insurer to go with that you are considering the coverage and additional benefits provided under each product and don’t simply make your decision on the cheapest premium an Insurer is offering. Cheap premiums are great up front until you have a claim and realise another Insurer could have provided cover or a benefit you don’t have or could have paid out more in the event of the claim. We at Longitude Insurance pride ourselves on providing not only competitive premiums but also offering a market leading product so brokers, strata managers and owners councils can rest assured they are well covered. Our security AAI Limited T/as Vero (part of the Suncorp Group) is one of the largest Insurers in Australia which should also be considered when choosing your Strata Insurer.
Jon Greenwood State Manager WA/NT Longitude Insurance Pty Ltd
West Australian Branch – Level 1, 35 Havelock Street, West Perth WA 6005
WA PO Box 8105 Subiaco East WA 6008 T: (08) 9381 7084 admin.wa@strataco mmunity.org.au
Media Release – INTERVIEW OPPORTUNITY AVAILABLE Friday November 20th, 2015 Attention Chief of Staff / Property Editor
THE FUTURE OF WESTERN AUSTRALIAN PROPERTY IS HERE: BUT WHERE DO PETS FIT INTO THE PICTURE? PROPERTY DEVELOPERS URGED TO APARTMENTS, UNITS & TOWNHOUSES
DESIGN
PET
FRIENDLY
Property developers and planners in Western Australia are being urged to plan and design new apartments and units that will allow the family pet to have a future in the state’s biggest property sector, strata. When you say goodbye to the backyard, does that mean you also have to say goodbye to the beloved family pet? Over 45% of Western Australians are expected to call the strata sector home by 2030, and there is concern that if the decision to allow pets is left to Council of Owners, there won’t be a place for pets in the lives of almost half the state. As thousands of WA property owners swap backyards for balconies amid a nationwide apartment and unit boom, the peak body for the strata sector in the west says there has never been more pressure applied to strata managers on the topic of pets. “Our strata managers are the sounding board for a lot of questions in their communities, and there’s probably no more talked about issue currently than the keeping of pets in apartments, units and townhouses,” Strata Community Australia (WA) President Rachel Cosentino said today. “This is a modern issue that will continue to develop and we are adamant it needs to be embraced by planners and developers. Indeed all strata schemes should consider amending the default by-laws to allow certain types of pets without express approval from the Council of Owners” Ms Cosentino says the debate around this topic has only heightened as states on the east coast like New South Wales make progress on reform of their own in this area, and it’s time Western Australian kept up. ______________________________________________________ Strata Community Australia www.stratacommunity.org.au
WA PO Box 8105 Subiaco East WA 6008 T: (08) 9381 7084 admin.wa@strataco mmunity.org.au
Media Release ............/2 “Millions of owners and residents of strata properties in New South Wales now have complete clarity on what they can and cannot do regarding pets in their strata title homes, and stakeholders here deserve the same.” “The situation we have in Western Australia is that if the default by-laws apply, pets are banned unless there is written approval from an owners corporation.” “In New South Wales this status quo has now been revolutionised to allow pets in all properties unless there is a reason not to.” Ms Cosentino says strata communities will rightfully have queries over this open door approach, but if governed by common sense, any changes made in WA will benefit everyone involved. “In the case of New South Wales, a weight limit was put on man’s best friend, allowing dogs of a certain weight (typically 14 kilograms) to reside happily with their owners.” “Properties where animals are allowed have been shown to have greater resale values for owners and with conditions like the weight limit, along with stringent policies on noise and safety, there’s every reason why pets in strata should be considered.” (Editors – see attached article) The $30 billion WA strata sector has a significant footprint in the state economy and Ms Cosentino says the growth of this fast expanding economic driver will depend on consumers not having to make compromises. “When consumers trade in a backyard for a balcony, they don’t want to sacrifice their previous life, and that means pets too.” “The decision is a big part of why the growth of the strata sector in New South Wales is expected to double in value in the coming years, and we want our sector here to have the best chance at achieving the same.” “If we’re serious about sustaining the future growth of this sector, expected to be a home for almost half of the state, this is the approach we recommend strata schemes, planners and developers take.” ______________________________________________________ Strata Community Australia www.stratacommunity.org.au
WA PO Box 8105 Subiaco East WA 6008 T: (08) 9381 7084 admin.wa@strataco mmunity.org.au
................/3 “In the meantime, owners and residents are encouraged to abide by the existing by-laws rather than jumping the gun and flouting community rules.” ENDS
Editor Note: Ms Cosentino is President of the Western Australian branch of Strata Community Australia – refer to SCA (WA) please. About Strata Community Australia (WA) Strata Community Australia (WA) Limited (SCA WA) is the peak industry body for Body Corporate and Community Title Management in Western Australia. Membership includes body corporate managers, support staff, committee members and suppliers of products and services to the industry. SCA (WA) members manage property worth an estimated replacement value of in excess $30 billion. SCA (WA) proudly fulfils the dual roles of a professional institute and consumer advocate. Website: http://wa.stratacommunity.org.au/ Released by: Pat McGuire Marketplace Communications 0412 748161 Patrick.mcguire@mpc.com.au
SCA (WA) President Rachel Cosentino
______________________________________________________ Strata Community Australia www.stratacommunity.org.au
D r a i n ag e
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23
Proposed changes to Western Australia’s strata laws could increase the amount of dense mixed-use infill development and make it easier for residents to put sustainability features like solar panels on their roofs, advocates of the reforms say. However, there is concern the reforms don’t go far enough in promoting sustainability and that termination schemes could affect vulnerable residents. The changes, which are to be delivered by the State Land Information Authority, Landgate, are a response to a growing population and an increase in strata titles, which now comprise one-third of new lots in WA. By 2031, WA will be home to more than 3.5 million people and we need to prepare for the increased demand for affordable and sustainable housing – including more cost-effective urban infill developments and community living options,” Landgate chief executive Mike Bradford said. “Proposed reforms to the [Strata Titles Act 1985 (WA)] aim to make shared living and working communities more attractive. They consider ways to provide more options for owning title to land and buildings; encourage an improved standard of service from strata companies; and propose better management and dispute resolution processes.” Lands Minister Terry Redman said the reforms would create more affordable housing options. “It is hoped these reforms will entice land developers and investors to WA, with provisions for more innovative and flexible planned community developments, which is currently a barrier to property growth in WA,” he said. Opposition Lands spokesman Chris Tallentire said strata reform was desperately needed, with the government taking too long to progress, and building sustainability suffering. “If one person wants to put photovoltaic panels on the roof now, for example, they need permission from everyone in the building to do it,” he said. Proposed reforms recently closed for industry and community consultations, and included:
introducing community titles allowing minor changes without unanimous agreement from existing owners simplifying the process of strata scheme termination allowing multiple strata schemes within a single building introducing leasehold strata in a development creating multiple levels of management within a strata title scheme improving dispute resolution
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Community Title The amendments aim to address limitations in the existing regulatory framework that could restrict the ability to implement community title schemes. A community title scheme involves more than one strata scheme within an integrated development with an overarching management body known as a community corporation. It could feature a mix of uses including residential, retail and commercial. “Community titles will encourage larger scale precinct-style housing development to occur in WA, similar to other states,” executive director of the Property Council of Australia’s WA branch Joe Lenzo said. “This includes more mixed-use development around suburban centres and strategic infrastructure investments like train stations. It is very important that we modernise WA’s antiquated strata laws as increasing numbers of people choose to live in strata properties, including apartments and townhouses.” Minor changes rules As part of the reform, an option is being presented that would allow for some types of infrastructure affecting common property or another lot to have approval requirements reduced from “one vote you’re out” to a simple majority vote. This could make it easier and cheaper to get sustainability structures like solar panels and rainwater tanks approved. However, according to Chiara Pacifici, head of sustainability at developer Psaros, the consultation paper hasn’t gone far enough and the reforms should make specific mention to sustainability infrastructure – “a range of fixtures to land that improve the environmental sustainability of a building or development. It should be a lot easier for lot owners to retrofit their properties,” she told The Fifth Estate. Ms Pacifici has proposed in a written submission to the government, co-authored by commercial lawyer Tristan Cockman, that further legislative changes be included relating specifically to sustainability infrastructure. She says that because the current situation of preparing and registering an exclusive use by-law for addition of sustainability infrastructure like solar panels is costly and time consuming (up to $1500), many people don’t bother following the rules, meaning there are a number of unlawful solar panels on strata properties at present, and also a big disincentive to bother installing at all. “In situations where an installation of solar panels is unlawful, the strata company could at any time require the solar panels to be removed. This creates a great deal of uncertainty for solar panel owners. Even worse, solar panel owners may not have protection against damage and/or liability.” Key to their recommendations is reducing the percentage of strata members needing to approve the installation of sustainability infrastructure on lots and common property; providing statements of factors or principles upon which decisions of the strata company are to be made (which take into account sustainability objectives); and implying a standard term into strata insurance policies so that sustainability infrastructure installed, owned and operated by individual proprietors is covered by the strata insurance policy. “Sustainability infrastructure will assist in the affordability and longevity of the dwellings designed and constructed in Western Australia, with long-term financial benefits flowing through to occupants,” the submission states. The ACT, Ms Pacifici said, was the only jurisdiction that had specifically referred to sustainability infrastructure in legislation, and it was time for other states to catch up. The submission has received support from the Real Estate Institute of Western Australia and the state’s branch of the Property Council, both of which Ms Pacifici says have sent letters to the government supporting the proposal. Termination Where changing the rules for voting becomes controversial, is around termination of strata schemes, an important consideration for creating denser infill development. “Strata schemes in practice have a finite life determined by the age of the building, its capacity for refurbishment and the owners’ capacity to pay for that refurbishment,” Landgate’s discussion paper says.
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Currently, a unanimous resolution by all owners of lots in a strata scheme is necessary to terminate the scheme. If the majority wants to sell but there is a small number of recalcitrant owners, then costly legal action must be pursued for termination. “At the moment a single owner can prevent sale or redevelopment of the land in the strata scheme against the wishes of the majority,” the paper states. “There is an argument that democracy and a majority vote to terminate should prevail over the wishes of a dissenting minority. “Town planners and developers have asked for more flexible arrangements to end schemes to facilitate planning strategy of urban renewal and urban infill, especially where zoning arrangements are changed, to permit increased density and development around transport hubs.” For lots of 10 or more, the proposal is for a majority vote for schemes that are at least 15 years old. This is to reflect the reality that buildings have a finite life, and repair and refurbishment costs may impact more heavily on older schemes. A lesser percentage vote will be required as the age of the scheme increases:
95 per cent for a scheme aged 15 or more years but less than 20 years 90 per cent for a scheme aged 20 or more years but less than 30 years 80 per cent for a scheme aged 30 or more years
Jurisdiction for termination matters would be transferred from the District Court to State Administrative Tribunal, which would apply principles in determining all decisions on ending schemes, including that ending the scheme is “just and equitable, objections are unreasonable and that ending the scheme is necessary”. While the move would facilitate much-needed infill redevelopment, there are those who are concerned that forcing owners to sell could impact on vulnerable residents. Changes afoot in NSW A similar move to change majority vote to 75 per cent in NSW – where strata reform has been put on hold but is expected to soon begin again following the Baird government’s re-election – drew criticism from the Tenants Union of NSW, which said it would force out elderly and vulnerable owner-occupiers from their homes. ”We are worried about owner-occupiers as well as tenants in the older strata schemes – particularly older owner-occupiers who have either few or no other assets than their apartment,” senior policy officer Chris Martin said last year. ”We have a housing system that doesn’t have enough affordable housing options, especially for older people. If the NSW government wants this urban renewal agenda it also needs to develop an affordable housing agenda.’’ Strata Community Australia WA, the peak body for strata owners, is behind most of the WA reform changes, however said that reforms needed to “strike the right balance between preserving owners’ interests in their strata property, and flexibility to upgrade, modernise and redevelop”. © Copyright The Fifth Estate Pty Ltd 2015
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Please Note: contributions are accepted in PDF format or MS Word
2016 Schedule: February April June August October December
Strata Community Australia (WA) Office Manager Suellen Bottecchia suellen@stratacommunity.org.au Administration Assistant Jo Wallington admin.wa@stratacommunity.org.au Address: Ground Floor, 215 Hay Street, Subiaco East 6008 PO Box 8105, Subiaco East WA 6008 Phone: (08) 9381 7084 Fax: 6315 2649 Email: admin.wa@stratacommunity.org.au www.wa.stratacommunity.org.au
SCA (WA) Member Update Management Business Member
Diamond Strata Mgmt Trewin Strata Mgmt
Michelle Odine Kim Trewin
Management Member
Courtney Butters-Kerr Keran Reat Shannon Halton Elna Wright Talia Rebbettes
Bellcourt Blackburne Bellcourt Chambers Franklyn Strata Mgmt Custom Strata Mgmt
Antenna Masters WA Insurance Builders
Romney Knight David Beaver
Strata Company Member
Dawesville Caravan Park
Bouvard
Owner Member
Tracey Woodhouse Elisabeth Francis-Kain Dennis Chong Christine Gillam Jonathon Blythe Hurio Gyoshi Peter Smith Turgay Gungor Dr Fran Pesich Andy Holler Albert Willmott Bart Gabriel Emma de Jager Gavin Farr Helen Machin Lloyd Vincent Lesley Moreschi Muhammad Hafeez Shaikh Nigel Graham Erin Blythe Robyn Weir Hanu Brotherpeter
Scarborough Fremantle Nollamara Bentley West Perth Lower Chittering Salter Point South Perth Booragoon Scarborough Seville Grove West Perth Booragoon Willetton Kinross Bayswater
Business Member
Personal Member
Armadale Mt Lawley Subiaco Alfred Cove Bicton
Education - Professional Development & Training Calendar 2016 B – Breakfast W – Workshop O – Owners C – Conference TBC – to be confirmed
PD EVENT CALENDAR 2016 Date
Event
Topic
19 Jan
O
Lot Owners
Proposed Venue TBC AIC, Vic Pk
29 Jan
B
National Accreditation 2016
Mat Bay
2 Feb
O
Role of the Council
SP Library
2
25 Feb
B
Strata Outlook 2016
Crown
2
15 Mar
O
Lot Owners
AIC, Vic Pk
-
23 Mar
B
Working in Harmony REIWA
Crown
TBC
W
101 Strata Plans
AIC, Vic Pk
2
2
April
CPD Points -
2.5
A100
12 Apr
O
Role of the Council
SP Library
27 Apr
B
Settling on Strata Living Liaisons
Crown
10 May
O
Lot Owners
AIC, Vic Pk
19 May
B
ACOSH - smoking in Strata
Crown
25-27 May
C
SCA CONVENTION
Alice Springs
TBC June
1.5 1.5 4 TBC
A100
15 Jun
B
TBC
Crown
W
Handing over and taking on new management - Best Practice 101 Strata Plans
1.5
AIC, Vic Pk
2
21 Jun
O
Role of the Council
SP Library
2
12 Jul
O
Lot Owners Forum
AIC, Vic Pk
-
27 Jul
W
Getting your Finances Right
2.5
16 Aug
O
Role of the Council
Tech Pk, Bentley SP Library
24 Aug
W
By Laws in the Spotlight
Tech Pk, Bentley
2.5
2
Education - Professional Development & Training Calendar 2016 B – Breakfast W – Workshop O – Owners C – Conference TBC – to be confirmed
TBC
W
101 Strata Plans
AIC, Vic Pk
2
13 Sep
O
Lot Owners
AIC, Vic Pk
-
28 Sep
W O
Tech Pk, Bentley SP Library
2.5
4 Oct
Managing your Building Fire Safety - Best Practice Role of the Council SCA (WA) AGM
REIWA LC
-
Motivation Life Coaching Yourself
Crown
TBC 26 Oct
B
TBC 2 Nov
2
1.5
Principal’s Retreat W
Nov
SAT
Tech Pk, Bentley
2
-
A100
8 Nov
O
Lot Owners Forum
AIC, Vic Pk
11 Nov
C
2016 Symposium
PCEC
6 Dec
O
Role of the Council
SP Library
4 TBC 2
25 May 2016 – SCA National Convention in Alice Springs, take a trip to see Uluru
11 November 2016 – SCA (WA) 2016 Symposium at Perth Convention & Exhibition Centre