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A Strata TitleUpdate,[object Object],ROCKEND STRATA USERS SEMINAR,[object Object],7 June 2011,[object Object],Melbourne, Australia ,[object Object]
Today’s Agenda,[object Object],A selection of strata issues,[object Object],2 Stage Victorian strata law changes,[object Object],Compliance issues,[object Object],Existing & emerging trends in strata,[object Object],50 years of Australian strata title,[object Object],Questions ,[object Object]
2 Stage VictorianStrata Law Reforms,[object Object],Some more Victorian strata law changes,[object Object],Consumer Affairs Legislation Amendment Act 2010 [CALAA],[object Object],Consumer Affairs Legislation Amendment (Reform) Act 2010 [CALARA],[object Object],Stage 1 started on 1 January 2011for everything except delegation to committees and proxies for committee meetings,[object Object],Stage 2 starts on 1 September 2011,[object Object]
2 Stage VictorianStrata Law Reforms,[object Object],Registered managers and chairpersons can witness use of the seal for owners corporation certificates,[object Object],Delegations to committees can be made by instrument or by resolution,[object Object],Delegations (by instrument or resolution) must be by general meeting,[object Object],Delegations to committees end at  next AGM,[object Object],Non valid delegations can be ratified,[object Object]
2 Stage VictorianStrata Law Reforms,[object Object],VCAT can award costs in fee & charge recover actions,[object Object],VCAT costs can include professional & volunteer manager charges directly or indirectly relating to recovery,[object Object],Only lot owners can appoint proxies to committees,[object Object],Empowers police officers, CAV inspectors or other CAV authorised people to serve infringement notices under Consumer Acts,[object Object]
Compliance Issues,[object Object],There’s a lot of laws, regulations, rules or contracts in strata,[object Object],They apply to everyone in strata ,[object Object],So, everyone in strata needs to comply with them,[object Object],But, there’s a lot of non compliance everywhere in strata,[object Object],Why does it happen?,[object Object],Why does it matter? ,[object Object]
Compliance Issues,[object Object],Ignorance: People just don’t know what to  comply with.,[object Object],Lethargy: People can’t be bothered to do what’s required,[object Object],Busyness:  People are too busy in their other lives,[object Object],Miserliness:  People won’t spend the money,[object Object],Arrogance:  People simply don’t want to ,[object Object],Corruption: What’s required is against their interests,[object Object],Civil Unrest:  The rule or provision is actually inappropriate and should be ignored,[object Object]
Compliance Issues,[object Object],It may be okay for owners not to comply (for whatever reason) since the consequences mostly affect them,[object Object],But, one strata stakeholder can’t get away with non-compliance - the strata manager  ,[object Object],Strata manager contracts require the strata manager to ,[object Object],operate the scheme according to all applicable controls,[object Object],other laws (negligence, trades practices and registration controls) require performance to strict competence standards,[object Object],There’s exposure to contract breach issues & damages claims,[object Object],Plus strata corporation & owner relationships will suffer,[object Object]
Trends,[object Object],The future of strata title will include more of the same,[object Object],But a few other trends will also influence strata over the next 10-20 years as follows,[object Object],Decentralised control away from committees,[object Object],Increasing owner empowerment on decisions& governance,[object Object],Hyper-regulation of strata scheme operations,[object Object],Degeneration of management into over-formality & processes - rather than outcomes,[object Object],Large scale owner apathy and ignorance ,[object Object],Increasing operational complexity of buildings & systems,[object Object]
Trends,[object Object],Haphazard application of other laws to strata corporations leaving them out of sync with other property,[object Object],Effective strata scheme support services become more crucial to good management & operation but increasingly hard to find,[object Object],Rapidly rising operating costs to owners causing stress & conflict,[object Object],Debates over appropriate owner engagement to determine how much is not enough & how much is too much,[object Object],Debates over tenant status, their rights & responsibilities.,[object Object]
50 Years of AustralianStrata Title,[object Object],A sparsely populated country with 7.6 million square kilometres, 22.5 million people & 8 major cities,[object Object],A strong culture of property ownership,[object Object],Stable banking & long term low interest mortgage sector,[object Object],Taxation incentives for residential rental investment property,[object Object],Enthusiastic property developers operating in boom-bust cycles,[object Object],Multi unit housing represents 25% of total Australian housing ,[object Object],51% of new housing in NSW in 2010 was multi unit housing,[object Object]
The Beginnings,[object Object],Apartments appear in the early 20th century,[object Object],The post war period see many more low rise apartments: mostly rented to younger couples saving for a home,[object Object],1950s income & wealth levels of baby boomers lead to pressure to own apartments so a few innovators looked at apartment titling options,[object Object],Lend Lease (via Dick Dusseldorp) lobbies for & initiates law reform for strata title and a joint working committee of private & government lawyers develop new NSW laws,[object Object],The Conveyancing (Strata Titles) Act 1961 starts on 1 July 1961,[object Object]
The 1960’s & 1970’s,[object Object],First NSW strata laws have29 sections& 2 schedules,[object Object],The first Australian strata building still exists in Ashfield,[object Object],NSW Laws copied all around Australia and Australian laws copied in Canada, New Zealand, Singapore, South Africa, Indonesia, Malaysia, Fiji, Philippines, Cayman Islands, India & Hong Kong,[object Object],Major NSW law reform ofin 1974  with 200 sections, 4 schedules & separate regulations,[object Object],Pioneering times for everyone,[object Object],Negative gearing promotes strata rental investment,[object Object],A specialised strata management industry emerges,[object Object]
The 1980’s & 1990’s,[object Object],Major NSW law reforms:  community title laws allowing estate subdivisions & 2 part laws (splitting development & management),[object Object],Major QLD law reforms: creating core Act & Regulation Modules for different building types,[object Object],Steady growth in stratapopularity, acceptability & values plus the 1990s property boom adds massive growth in strata numbers,[object Object],Large scale foreign investment in strata property ownership,[object Object],Professional strata associations/groups emerge & strata managers regulated in 2 states,[object Object],Holiday apartment syndrome starts in QLD &  long term (25 year) onsite management contract emerge,[object Object]
The Naughties,[object Object],Australian laws copied in United Kingdom & United Arab Emirates,[object Object],Proliferation of law reforms in every Australian state,[object Object],Over 33 separate strata Acts, with over 1600 sections, over 3000 regulations & more than 70 schedules,[object Object],Proliferation of legal decisions in Courts around Australia,[object Object],GFC puts pressure on property values & strata cash-flows,[object Object],Larger & more complex strata developments emerge,[object Object],Smaller sized housing units become standard in strata,[object Object],Strata manager business polarise with large oligopoly style operators & micro businesses,[object Object]
Conclusions & Questions,[object Object],What have we learnt?,[object Object],Where do we go from here?,[object Object],What are the next questions?,[object Object],Where do I find answers?,[object Object]
Contacting Me,[object Object],Contact me anytime about strata matters at …,[object Object],francesco@strataexperts.com.au,[object Object],And, follow my blog on worldwide strata matters at …,[object Object],www.francescoandreone.blogspot.com,[object Object],Find information about strata at my websites at …,[object Object],www.francescoandreone.com & www.strataexperts.com.au,[object Object]

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Presentation for Rockend\'s Melbourne Strata Users Day - June 2011

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