Development, subdivision and planning
There will be more flexibility for the staged development of strata and survey-strata schemes.
- Under the current system, strata subdivision can come to a standstill for a period of time, while the developer seeks to obtain necessary consents to make a change from the original Management Statement proposal.
- This has been challenging for property developers and investors, as well as leaving owners living next to an unfinished strata scheme.
The new laws will make it clear when the consent of owners is required to change the way a scheme is being developed, while making the process more viable and streamlined for developers.
- Schemes will no longer require a Management Statement. Previously, if a developer intended to create a scheme by successive stages, the details would be set out in a Management Statement that accompanies and forms part of the by-laws.
- Details of staged development will now be set out in the scheme by-laws and are called staged subdivision by-laws.
- The new law ensures the rights of lot owners who have already bought into earlier stages of the scheme are protected, while making the process less cumbersome for developers.
- The definition of ‘significant’ variation has changed.
- Unanimous resolution of the strata company and the consent of interest holders is still required for registration of the subdivision if there is a significant variation.
- Interest holders can be taken to have given consent if they don’t actively respond to notice given to them.