October 6th, 2022
5 questions first-time Property Investors should ask
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Last year, the Queensland state government held the October 2022 Housing Summit, wherein real estate stakeholders addressed numerous issues in the property industry. In response to the Summit, the state’s Labor government has decided to introduce several legislative changes. A primary change affecting owners is the proposed change to community title schemes.
- Under the changes, a community title scheme can be terminated with the approval of 75% of lot owners.
- The changes would also allow bodies corporate to ban smoking in outdoor and communal areas, protecting residents from second-hand smoke.
- Pet owners will be protected by the changes which prevent the banning of pets, except in specific circumstances.
The aim of these proposed changes to body corporate legislation is to simplify unit redevelopment.
How will these changes affect property owners and investors?
As outlined on page 17 of the Queensland Housing Strategy Report, a major change affecting property owners and investors was the decision to simplify the process of selling and redeveloping aging community title schemes. This change is set to aid the government in delivering “more housing, including social and affordable housing.”
What is a community title scheme?
A community title refers to an area of land that is split up into at least two lots and has shared areas such as driveways, gardens, or recreational facilities.
What difference will this make?
Currently, the only way a community title scheme can be terminated is if no owner opposes the termination, or if the District Court is satisfied it is just and equitable to terminate it.
However, under the new laws, a scheme can also be terminated when:
- 75 per cent of lot owners support its termination
- and the body corporate agrees it is more financially feasible for lot owners to terminate rather than continue or renew the scheme.
Why is this change coming into place?
According to Attorney-General Shannon Fentiman, scheme termination was identified as “a key area that required reform” in the October Summit.
Fentiman continued, “I’ve heard many stories of rundown units, townhouses or complexes with unsustainable ongoing maintenance costs where owners want to terminate, but a single owner blocks this from occurring.”
Pet protections
As Fentiman outlined, “We also know that pets are important to many Queenslanders and that, as more people choose to live in community titles schemes, keeping animals is an increasingly pertinent issue.”
Accordingly, the new laws aim to give pet owners more protection. Specifically, there will no longer be a ban on pets, except for in unique situations.
Addressing concerns around second-hand smoke
Fentiman continued, “Second-hand smoke can be a serious concern, and these laws will ensure that bodies corporate are able to make more substantial decisions about the health and wellbeing of residents.”
The new laws would allow bodies corporate to ban smoking in outdoor and communal areas, with the aim of protecting residents from second-hand smoke.
More safety for residents regarding hazardous vehicles
Additionally, bodies corporate will be granted the right to tow vehicles that are limiting access or are deemed hazardous.
More reforms are on the way
This is the first package of reforms to body corporate legislation in Queensland. A second package of reforms is set to be introduced by the end of 2023.
