Page 395 - Week 02 - Tuesday, 18 February 2020

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responsibilities the owner will acquire on becoming a member of the owners corporation.

These changes will ensure consumers are informed about what they are buying, including being informed about the proposed owners corporation rules, the methodology for distribution of costs, the use of common property, and other matters. Buyers of off-the-plan units will now receive a considerable amount of information not previously provided, through the new requirements for a disclosure statement. The bill also proposes better mechanisms for buyers to rescind contracts where changes to the development plans during construction led to changes that may be contrary to what the buyer thought they were purchasing.

The bill also provides benefits to the developers of unit plans in a number of ways. While they will be required to prepare and disclose significantly more information than previously, provisions related to the disclosure statements will also provide greater surety to developers by confirming guaranteed purchasers for their development. Where purchasers are informed of changes to the development and have no objections, developers will know earlier in the development and construction phase which purchasers will be completing their contracts. This removes the uncertainty for developers of buyers being able to rescind just prior to settlement if they have not been informed.

Additionally, developers will now be able to create more unique and adaptable developments through the ability to tailor the rules of the units plan. Developers will be able to consider the needs of the buildings and adapt the rules to suit these needs from the outset. This may relate, for example, to a special privilege rule for a commercial unit owner to operate an outdoor dining area in the common property or changing the methods of levy contributions to ensure that unit owners contribute more fairly and in proportion to their use for services like commercial waste collection, access to facilities and so on. These changes will encourage developers to create more innovative and adaptable buildings which people want to live and work in.

Finally, the bill provides a number of transitional arrangements to allow for a period of adjustment for owners and industry. For example, these include sufficient time for developers to adapt to the new requirements for providing disclosure statements to buyers, as well as developing the new maintenance schedules they will provide to their newly established owners corporations. These requirements will come into effect from 1 July 2021.

In addition, owners corporations will be given time to decide whether they want to adopt the new default pet-friendly rule, create their own specific one or maintain a consent process for the keeping of pets. They will have until the second annual general meeting post commencement of the legislation to determine what their pet policy will be. After this, the default pet rule will automatically apply. These transitional periods are important in facilitating an efficient and uncomplicated adjustment to the new legislative requirements.

In summary, I emphasise to the Assembly that this bill recognises the importance of these reforms as we move towards higher density living. This bill delivers many


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