UNIT-owner organisations across Queensland are pushing to overturn the state’s management rights regime and threatening destruction of a multi-million dollar industry, according to a Gold Coast lawyer.
Minter Ellison partner David Bowers says bodies opposed to the regime are arguing against it in responses to a Bligh government discussion paper.
It canvases the views on community management schemes and management rights legislation.
Mr Bowers said the paper was issued as a consequence of a strong push for change by unit-owner associations.
“Among claims being made are that overcharging of unit-owners for caretaking services is widespread and that a resident manager is a restraint on competition in the provision of letting services,” he said.
“Generally, the push is to overturn the existing management rights regime.
“Acceding to such a push has the potential to cause massive damage to the management rights industry.”
Mr Bowers said little good could come from unravelling an important service industry in which many millions of dollars have been invested by parties ranging from mums and dads to major corporations.
“The Government needs to be mindful of consequences and be cautious in relation to any changes,” he said.
Mr Bowers, who helped draft the Property Council’s response to the discussion paper, said Queensland was the nation’s leader in the provision of body corporate and management rights legislation, which incorporated a suite of checks and balances.
He said unit-owners’ main complaints were the way some management rights were structured and that fees were too high.
“What seems to be missed is that there are protections against this in the Act.
“Also, Queensland has comprehensive disclosure requirements and nobody has to buy a community-title property without knowledge of charges.
“Is it therefore fair, when people have paid money for management rights and unit-owners have bought knowing the fees, for the unit-owners to then seek to change the goalposts?”
Articles are for information and do not necessarily reflect the view of Success Law.