An Examination of the Need for Legislative Reform Arising from the 'Holdout' Phenomena in the Reassembly and Termination of Community Titles Schemes
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A significant number of Queenslanders reside in community titles schemes, and this figure is increasing annually as a result of population growth, changes in planning policies and economic opportunities. Many buildings constructed since the introduction of community titles legislation in the 1960s are now reaching or have exceeded their economic lifespan. Despite this, termination and redevelopment of schemes has received little attention until recently. Section 78(1) of the Body Corporate and Community Management Act 1997 (Qld) requires the passage of a resolution without dissent – unanimous approval by lot owners – to terminate a scheme, a necessary prerequisite to redevelopment of the scheme land. The requirement for unanimity prevents the termination of a scheme where a single dissenting owner exists. This inability to overcome what may be a single owner’s dissent, when the vast majority of other owners support the termination, is problematic. This is particularly the case in circumstances where a dissenting owner is engaging in strategic holdout behaviour with a view to extracting the best financial and non-financial terms for a sale. Self-interested holdout behaviour, together with the economic and social impact discontinuation of a redevelopment proposal may have on the wider community, is a justification for reforming the termination provisions of the Body Corporate and Community Management Act to better balance the rights and interests of stakeholders.
Thesis (PhD Doctorate)
Doctor of Philosophy (PhD)
Griffith Law School
Body Corporate and Community Management Act 1997 (Qld)
Community titles schemes