Dodgy Deals, Done Without Consultation
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Yesterday, the Owners Corporations and Other Acts Amendment Bill 2019 along with last minute amendments allowing the sale of ‘management rights’ passed the third reading in the upper house of Parliament and will be returned to the Assembly for approval.
Seven years in the making, it has not delivered for consumers and it has not delivered reform to a rapidly growing sector, far from it.
In a huge win for the top end of town, property developers continue the right to lock in future owners to long term contracts with suppliers such as building managers, maintenance, and other services.
Binding future owners into long term contracts is just not right. These contracts are put in place at the sole discretion of the developer, with their interests first and future owners an afterthought. These changes open the door to the sale and purchase of Management Rights to Victoria which has plagued the Queensland sector for several decades.
We know what follows – owners corporations blindsided by expensive contracts, locked in for long periods of time and stripped of their right to choose or the ability to properly performance manage.
SCA (VIC) advocates for owners and owners corporations on these issues' day in, day out, to raise awareness of the conflicts of interest throughout the development stage and beyond.
The Bill was introduced to parliament originally in 2019 after thorough consultation with the strata sector and the property sector broadly, and last-minute amendments allowing the sale of ‘management rights’ is a hugely disappointing outcome for the 1.5 million people living in Victoria under strata.
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Gregor Evans, SCA (VIC) President on behalf of Strata Community Association Victoria
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