6.     A NAME CHANGER

 New laws stipulate that the executive committee will now be called the strata committee.

 The ins and outs

 This new change in name which sees the word ‘executive’ removed from the title is expected to bring a few of the committee members back down to earth. Capital Works Fund will also replace Sinking Fund – more professional and less confronting, we think it is a change for the better.

 7.     NOT SO CROWDED

Owners corporations can now set limits on the number of people allowed to live in an apartment, provided the upper limit is no less than two adults for each bedroom.

 The ins and outs

The “no less than” limit is actually a benchmark that owners corporations can use to prevent overcrowding and multi-occupancy. Fines for breaches have been pumped up to $11,000 for a first offence and $22,000 for subsequent offences. Supporting legislation that will allow council inspections based on circumstantial evidence, such as numbers seen arriving and leaving, is apparently in the pipeline.

 8.     HIGH FIVE TO LIMITED PROXY VOTES

Proxy votes will be limited to five per cent for each holder.

 
The ins and outs

This new rule is designed to limit control of the committee. How and why? Typically committee chair-people and secretaries have easy access to owners; this makes it very easy for them to manipulate information, and votes. In some circumstances, chair-people have over 50 per cent of the vote tied up, making it very easy for them to remain in power and run the buildings - and often they do just that. Consequently, the same members make sure they stay in power and vacancies on their committees are filled by their mates and buddies. However, this old ‘anti-democratic’ way, only supress ideas and starve committees of new blood. It is far from productive or effective. Not anymore. Thankfully this new law recognises this and will create a fairer committee. A change that is well and truly overdue.

 9.     LOW LEVIES PAYBACK

Should a developer promise unfair low levies at time of sale, the owners corporation are now able to get compensation.

The ins and outs

In the past unscrupulous developers have been known to promise naive buyers into luxury facilities at low or no cost. All the while the owners not realising that in fact they actually have to pay bills for those services! But, by then it is far too late and the developer is well and truly out of the picture. Well, not anymore. This new rule is designed to eradicate this issue. Now, owners can pursue the developers for compensation through the tribunal (NCAT).

 10.  NEW MEANS TO VOTE

With approval, the committee can now agree to allow other means of voting.

 The ins and outs

Prior to this new rule, voting was made in person or by proxy. This new change brings them up to speed by allowing electronic votes via Skype calls, email and even good old-fashioned snail mail.

 While these are only a small portion of the bigger picture that includes dozens of new changes, these new laws are certainly a step in the right direction. From online votes to compensating owners for low levies, these changes will certainly help bring strata investments up to speed with the rest of the real estate world.

 But these new strata rules are just one piece of the puzzle when it comes to understanding what is involved with owning or investing a CBD apartment. Thankfully, the team at HSBP understand the Brisbane CBD like the back of their hand! From strata regulations to the best areas to invest, contact Hannah and the team on 0419 782 133 - the experts in Brisbane CBD property.

Find out if these changes apply to your property in your location - speak to your Strata Manager today.

 Interested in reading last weeks ‘Part 1’ article? Visit:  http://www.hsbrisbaneproperty.com.au/blog/index.php?option=com_content&view=article&id=224:hs-brisbane-property