The new strata reform takes effect from 30th November 2016. As you may be aware, these changes have been “discussed” for many years, and in that regard, we’ve been changing our procedures & systems to allow smooth transition for quite some time.
There are a lot of significant changes that may or may not affect you. We suggest that you try to attend a free OFT information session to gain a greater understanding of the new reforms.
Key Changes include:
- Collective Sale clauses. Schemes no longer need a unanimous vote (100%) to dissolve / sell a strata scheme. The requirement is now 75%
- The Sinking Fund is now called the Capital Works Fund and the Forecast is required to be reviewed and followed on an annual basis.
- Proxy Farming – there are now restrictions on the numbers of proxies a person can hold.
- Increased requirements with meetings including the need to send meeting notices to tenants (where a building has more than 50% tenants noted on the strata roll).
- A quorum is 25% of financial owners, however if that number is not achieved within 30 minutes, the chairperson can deem a quorum and declare a meeting valid (with conditions).
- There are new model by laws. A scheme has 12 months to determine if they wish to adopt the new model set of by laws and have them registered on Title.
- Electronic voting (via email, skype etc) is now acceptable if a Strata Corporation resolves to allow it. This will greatly benefit those who work out of the area, or those who can’t afford to take time off work once a year.
We are informed that the basis behind the bulk of the legislative changes was to encourage strata scheme owners to take more interest in the running of their scheme and to increase accountability to Strata Corporations.
As usual, we are looking forward to bringing these changes to you at your next meeting.