So Premier Rees has finally put an end the corrupting cancer of developer donations to the Labor party. With about a million Sydney residents living in strata, Mr Rees may be on to something with his new open and honest approach. But will improved (like, some) protection for strata owners be enough to save Labor’s state electoral skin?
Talks on strata law reform are already underway and things may change for the better anyway. As part of a review of consumer laws the Federal Government is currently considering an amendment to the Trade Practices Act that would mean from July next year judges will be able to change or negate contracts deemed “unfair”. The fact that this will include off-the-plan sales contracts for apartments and townhouses has alarmed developers’ pressure group, the Urban Taskforce.
In a press release warning this could mean the end of strata development, Urban Taskforce CEO Aaron Gadiel says this “may be a good idea for airline, fitness centres and mobile phone contracts” but, he adds, it shouldn’t apply to apartments. “In order to justify the enormous investment capital required to build a new apartment building, a developer must know that it can rely on the off-the-plan contracts agreed to by home-buyers,” says Mr Gadiel.
In other words, developers and banks might not risk their money if they think some misguided judge might revoke sales contracts at some future date. But isn’t the simplest answer to make absolutely sure the contracts are fair in the first place? And shouldn’t they be anyway, even without this law? Are things really so bad that the only way strata developers can survive is if owners have less consumer protection for their $500,000 home that their $50 phone?
Looking at recent court battles between developers and owners over defects, the sooner any protection for apartment owners comes in the better. Here’s a thought: maybe the high-powered lawyers that our less scrupulous developers use to bully home owners could be better employed writing fair contracts. Two birds, one stone.