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.
Who needs to know?
- Property developers
- Strata owners
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.