In a significant development for Queensland bodies corporate, new legislation governing scheme termination has been enacted. This marks a pivotal shift in the regulatory landscape. These reforms aim to streamline the process of scheme termination and redevelopment for aging unit complexes. Directly affecting the operations and decision-making of bodies corporate across the state.
Under the previous legislation, the unanimity requirement for the sale and redevelopment of entire complexes often led to protracted disputes within bodies corporate. Hindering progress and creating challenges for collective decision-making. However, the newly enacted legislation now allows a body corporate to proceed with scheme termination and sale to a developer with the support of just 75% of lot owners, under specific conditions.
These conditions entail the body corporate reaching a joint decision that the financial burden of maintaining or repairing an aging or deteriorating unit complex is unsustainable. With no economic viability for maintenance or remediation over the next five years. Moreover, safeguards have been implemented to protect the rights of minority owners who might object to the scheme’s termination. Compliance will involve obtaining professional reports, establishing minimum compensation formulas, detailing termination consequences, and securing approval from 75% of owners for termination. Additionally, mechanisms will be in place for concerned owners to contest the termination.
For bodies corporate, these legislative changes present both challenges and opportunities. On one hand, they provide a streamlined pathway for addressing issues related to aging properties and facilitating necessary redevelopment. However, they require careful consideration and strategic planning to ensure compliance and protect the interests of all stakeholders in the community.
To assist in navigating these changes, bodies corporate are encouraged to contact their SSKB Community Manager. Our experienced team can provide guidance, support, and tailored solutions to help navigate the implications of the new legislation and ensure compliance with regulatory requirements.
Disclaimer: At the time of writing, all care and due diligence have been exercised to ensure that the content presented is accurate and up-to-date. However, the specifics of regulations, guidelines, and circumstances can vary significantly from one location to another and may change over time. We strongly recommend consulting with your SSKB Community Manager or the relevant Body Corporate/Owners Corporation to understand how this information applies to your specific building and situation. The information provided here is for general guidance only and should not be considered as professional advice.
