Forced sales for Queensland unit owners?

 

As buildings age and the cost of maintaining those buildings increases, we are sometimes asked how a Body Corporate can agree to dissolve and sell the property to a developer.   This can be a tense time for each of the property owners within a Body Corporate, especially where there is a mix of owner-occupiers and investors.

Unanimous decision currently required.

The current system with respect to scheme termination (a Body Corporate dissolving itself) is clear.  All owners must agree.  If there are 50 units in a scheme and 49 want to sell to a developer and one doesn’t, no sale can occur.  There are potential avenues to apply to the District Court for orders where there is a stalemate.

‘Majority Rules’ coming soon?

The Queensland Government recently engaged a review of Queensland’s Property Law.

The review made several recommendations regarding Queensland’s Body Corporate laws.

This includes a proposal to reduce the current threshold for scheme termination, essentially allowing for a certain percentage of owners to agree and take along unwilling sellers in that process.  What percentage of owners that would require is yet to be determined but the report offers the following suggestion –

  • a minimum requirement of at least 75% of owners to vote in the resolution to terminate the scheme; and
  • a maximum of 15% of lot owners voting against the proposal giving an effective 85% threshold

While the government has yet to publicly comment on the report, a response may occur sometime this current term of Parliament.  With the cost of maintaining ageing buildings continuing to rise, we expect this issue is likely gathering further political attention.

We will watch with interest and keep you updated.

 

 

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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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