STRATA REFORM NEWSLETTER #1:

The Strata reforms aims to make Strata better and provide more flexible and sustainable housing options to benefit Strata Owners, Residents, Tenants, Investors and Developers.

Every Strata property registered as a Strata Title at Landgate are subject to the Strata Titles Act 1985 and will all be subject to changes when the Strata Titles Amendment Act 2018 comes into operation by proclamation.

The Strata Titles Amendment Bill 2018 on the 1st November 2018 was passed through parliament, and will come into operation on proclamation. A proclamation is a public announcement with statutory authority published in the Government Gazette and made by the Governor in Executive Council, which will occur after the regulations to support the amended Strata Titles Act 1985 have been drafted, the aim of Landgate is for the Strata Titles Amendment Act 2018 to come into operation in the third quarter of 2019, though this timing is subject to Landgate completing the regulations.

Over the next few months we will provide to you a one page update on each of the key changes to the act. The first one being compulsory Reserve Funds and Building Maintenance Plans for every strata scheme that has 10 or more units.

RESERVE FUNDS /BUILDING MAINTENANCE PLAN
Reserve Funds and Building Maintenance Plans are now compulsory for every Strata Company that has 10 or more lots, each scheme must establish a fund for the purpose of accumulating funds to meet contingent expenses, other than those of a routine nature, and other major expenses of the Strata Company likely to arise in the future and determine the amount’s to be raised for payment into a reserve fund and raise those amounts by levying contributions on the owners in proportion to the unit entitlement of the respective lots.

The building maintenance plan must set out the common property and the personal property of the Strata Company that is anticipated to require maintenance repair, renewal or replacement, and this plan must be revised at least once in every 5 years and when revised the plan must then be extended to cover the 10 years following the review and to obtain the estimate costs for the maintenance, repairs, renewal or replacement and other information that may be required by the regulations once known.

We are recommending that each Council of each scheme instruct us to obtain a minimum of 2 quotes for this Building Maintenance Plan and forward it to the Council of Owners for consideration and instruction via a tear off, so that the report can be obtained closer to the end of the year in preparation for knowing the figure required for the Reserve Fund at the 2020 Annual General Meeting.

REGARDS – MANAGEMENT – ALL STRATA MANAGEMENT SERVICES