There is more flexibility for the staged development of strata and survey-strata schemes.

  • Under the old system, there was a risk that subdivision would 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 was 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

What's changed?

The new laws 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 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 must 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.

Additional information