On 1 May 2020, a comprehensive reform of the Strata Titles Act 1985 (WA) (Act) came into effect, which brought about various changes to WA's strata framework, including improved disclosure to buyers of strata lots, improved strata management, clearer pathways for strata scheme terminations, the introduction of leasehold strata, flexibility for developers of staged developments, and a ‘one-stop-shop’ for strata disputes via the State Administrative Tribunal.
Almost 5 years on, Landgate is now administering the statutory review of WA’s strata laws to ensure the laws remain effective and relevant for the future of strata living and development in Western Australia. The review aims to enhance strata living for owners, residents, and industry professionals. In particular, the review will focus on:
Improving cost controls by:
- considering whether financial hardship consumer protections are required for lot owners and residents;
- reviewing whether 10 year maintenance plans are effective and assist strata companies with budgeting and raising funds for future maintenance plans; and
- considering the various challenges that are preventing more strata schemes from adopting sustainable infrastructure.
Enhancing strata living by considering whether:
- restrictions on proxies, such as caps or time limits, are required to prevent “proxy farming”;
- a tiered approach to scheme governance is required for large schemes;
- specific provisions are required in the Act for renovations and lot alterations, and also maintenance and access to infrastructure that benefits only one, or a few lots, in a scheme;
- current Governance and Conduct by-laws are still relevant to modern strata living;
- specific provisions are required in the Act to address bullying and harassment of lot owners and residents; and
- the State Administrative Tribunal has been effective in resolving disputes quickly, cheaply, and effectively, or whether an alternative dispute resolution mechanism is also required.
Improving strata manager practice and standards by considering:
- the current education standards of strata managers;
- whether registration or licensing requirements are required for strata managers;
- whether clearer obligations are required for strata managers to disclose any conflict of interest; and
- whether further clarity is required regarding the role of strata managers and their relationship with the strata company.
The first consultation phase with the community and key industry and government stakeholder organisations concluded on 31 October 2024. The second consultation phase is expected to commence in the first half of 2025, and will focus on potential reform solutions to issues identified in the first consultation phase.
With over 340,000 strata properties currently existing in WA, this review is a crucial step in ensuring that WA’s strata laws continue to meet the needs of the strata community and help to deliver affordable and sustainable housing solutions for Western Australians.
For specific advice on how to navigate this reform, please contact Michael Stone, Senior Associate | Real Estate or a member of our Real Estate team.