Fair Trading Minister, Linda Burney, today reminded NSW strata owners they have four weeks left to comment on possible reform to the laws governing the level of control developers can hold over strata properties.

Ms Burney said the NSW Government discussion paper, 'Improving the NSW Planning System', contains a specific chapter on potential reforms to strata and community schemes legislation to better balance the rights of owners and developers.

The discussion paper was released by the Planning Minister in late 2007.

“When a strata complex is first built, the developer owns all the units and consequently holds all the voting rights in the owners’ corporation,” Ms Burney said.

“Some developers seek agreements with buyers to continue to hold voting rights rather than hand over control of the owners’ corporation to the owners, potentially making it difficult for owners if there is a dispute against the builder or developer about the property.

“Reforms to strata laws in 2003 and 2005 restricted the powers of developers once units were sold, however more work may need to be done on some specific issues.

“We want to hear from strata owners on a range of topics to ensure our strata laws are keeping pace with industry and market developments.”

Possible reforms include:

• stopping developers from making exclusive use parking by-laws
• limiting the number of proxy votes any person can hold
• prohibiting use of proxy votes or power of attorney by developers
• requiring candidates for election to executive committees to disclose any connection they have with the developer
• making it easier for the Office of Fair Trading to resolve building complaints
• making it clear that building managers are subject to the same regulation as caretakers.

The discussion paper is available on the Department of Planning website at www.planning.nsw.gov.au/planning_reforms/index.asp
The strata section is chapter 8 – ‘Strata reform for better planning’.  Submissions close on 8 February 2008.

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