Article
Strata Managers – Are You Ready For The New Regulation Modules Legislation?
January 25, 2021
Commencing 1 March 2021 the new regulation modules will make some significant changes to the Strata industry in QLD. As we have previously detailed here, there are key changes which will effect the compliance of your strata property. Below we will discuss in detail these compliance changes.
Defect assessment motion
It will be a requirement for the body corporate to consider a motion to engage suitably qualified professionals (like us at GQS) to undertake a defect assessment at its second annual general meeting. For developments being staged, this will need to be considered at the second AGM post completion of each stage.
Our Building Inspectors are perfectly positioned to assist with this requirement whether there is the potential for QBCC claims or simply to ensure the condition of the property and quality of the construction.
Independent Replacement Cost Valuations
The Original Owner (Developer) must obtain an independent valuation for each building the body corporate must insure under chapter 8, part 6. This will ensure that whilst the Developer has voting rights that they are not under-insuring the property, or basing the valuation simply on the construction cost (or building contract sum). Our Quantity Surveyors complete hundreds of these valuations a year, in 2020 we valued over $4.4 billion worth of property in Australia.
Sinking Fund Forecast
The Original Owner (Developer) must obtain a detailed and comprehensive estimate of the body corporate’s sinking fund expenditure for the scheme’s first 10 financial years, that must include an estimate for the repainting of common property and of buildings that are body corporate assets. Our Quantity Surveyor’s are highly skilled and qualified to produce these schedules in detail exceeding the legislative requirement. In 2020 we completed over 300 of these assessments on properties in QLD.
If you have any queries in regards to the new regulation modules and how it effects the compliance of your strata property please do hesitate to reach out to our team of experts on 1300 290 235 or [email protected]
