NSW Fair Trading Minister Linda Burney today reminded strata owners that Friday, 8 February is the closing date to comment on proposed reforms to laws governing the level of control developers can hold over strata properties.

Ms Burney said when a plan for a strata complex is first registered, the developer holds all the voting rights in the owners’ corporation as they own all of the units. 

“Some developers want to hold onto this control and seek agreement from buyers for this to happen, potentially making it hard for owners if there is a dispute against a builder or developer about the property,” Ms Burney said. 

“Improving the NSW Planning System is a discussion paper relating to the reforms released by the Planning Minister in later 2007. Chapter 8 of the paper, ‘Strata reform for better living’, discusses proposed reforms to legislation relating to strata and community schemes, to better balance the rights of owners and developers.”

Ms Burney said issues discussed in the paper include disputes about defective building work, exclusive use parking by-laws which benefit developers and the role of building managers.

Possible reforms include:

• stopping developers from making exclusive use of parking by-laws
• 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.

Ms Burney urged all strata owners, developers and all other interested parties not to miss out on the opportunity to have their say on the proposed reforms.

The discussion paper is available on the Department of Planning website at www.planning.nsw.gov.au/planning_reforms/index.asp. Submissions close Friday, 8 February 2008. 

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