Reforms will help modernise apartment and unit living, peak body says
The Real Estate Institute of Queensland has praised the recent changes made to several contentious body corporate matters in Queensland.
The Body Corporate and Community Management and Other Legislation Amendment Act 2023, passed by the Queensland government, has brought these matters in line with modern community expectations, REIQ said.
The key changes introduced by the Act include:
- Prohibition of smoking: Body corporates now have the authority to create by-laws that prohibit smoking, including vaping, in outdoor areas and communal spaces of strata communities.
- Pet ownership: Blanket pet bans in community title schemes are no longer allowed. Instead, a mechanism for pet approvals has been introduced, allowing body corporates to regulate pet ownership in specific circumstances.
- Towing of vehicles: The act clarifies and enhances the ability of body corporates to tow vehicles parked in contravention of by-laws on common property.
- Scheme termination: In limited circumstances, the consensus required for scheme termination has been reduced from unanimous to 75% of lot owners.
Antonia Mercorella, CEO of REIQ, expressed support for the reforms, saying that they would help modernise apartment and unit living.
“The REIQ certainly supports the viewpoint that quiet enjoyment of people’s homes is a right that should be upheld and not restricted as much as possible,” Mercorella said. “However, we recognise that due to the nature of sharing a title and being in close quarters, there needs to be laws that govern communities with clarity and necessary protections to keep everyone within them safe.
“As our population grows, living in apartments and units is becoming more commonplace, and it’s important to ensure our laws keep pace with changing community standards and expectations, and are balanced so that this lifestyle remains attractive in our state.”
The ability for body corporates to prohibit smoking in outdoor areas has sparked considerable debate. While individuals have the right to live as they choose within their own homes, the impact of activities on neighbouring residents, such as smoke drift and second-hand smoke risk, must also be considered, Meercorella said.
The reform preventing blanket pet bans has been another contentious topic.
“Historically it’s not uncommon to see body corporate bylaws with a blanket pet prohibition that says ‘no pets allowed’, and time and time again we have seen those bans being overturned,” Mercorella said.
The new legislation recognizes the importance of pets as part of families and acknowledges the widely reported mental health benefits associated with pet ownership, she said.
“However, it’s the REIQ’s view that there’s a missed opportunity to align this legislation to the Residential Tenancies and Rooming Accommodation Act regarding the timeframe for a decision in relation to a pet request – any inconsistency will likely impact lot owners that rent their properties on the residential rental housing market,” she said.
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Regarding the towing of vehicles, the reform aims to address situations where certain lot owners or their guests monopolise visitor parking, depriving others of its intended use, REIQ said. Adequate signage and information provision to lot owners about parking and towing by-laws, as well as liability and third-party guest considerations, are crucial aspects of the reform.
The most controversial change introduced by the act is the provision allowing the termination of a community titles scheme for economic reasons. This reform, limited to specific circumstances involving ageing or rundown buildings that will become unviable within five years, includes rigorous statutory requirements to protect vulnerable individuals and parties with contractual interests in the scheme.
“From our perspective, it was particularly important to see adequate consumer protection measures included for vulnerable people, such as options for recourse, and compensation for lot owners as well as for parties with contractual interests in the scheme,” Mercorella said.
Additionally, changes have been made to the Land Sales Act 1984, specifically impacting sunset clauses in off-the-plan land sale contracts. Property developers can now invoke sunset clauses only in specific situations with the buyer's consent.
“It is our view that the proposed provisions, albeit offering strong consumer protection, may lack consideration for the commercial challenges faced by developers in providing housing,” Mercorella said. “We appreciate that in what has been an unprecedented, extraordinary market period, that there have been some reports of developers pulling the pin on developments and leaving buyers to start again. However, our concern is that this now legislates an outlier issue which is not prevalent or evident in today’s market now that we’ve returned to ‘normality’, and under normal circumstances these clauses are needed for developers to avoid bankruptcy on unfeasible projects.”
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