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Resort News |
| Issued by Queensland Resident Accommodation Managers Association Inc | |
| THE DEMOCRATIC PROCESS ALLOWS FOR PROGRESS AND REALITY | |
| by Kim Cox (President) | |
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An important mature milestone for the community and strata title industry has been determined by the outcome of the dispute appeal at the Gold Coast high rise, 19th Avenue, in which the decision of the majority of owners was confirmed. Whilst it was an important outcome for resident letting managers and a better understanding of the need for security for these businesses which invest in schemes, it was equally important for the dispute management process. For some time now QRAMA and its members have been working with other stakeholder groups and the State Government to look at the dispute resolution process within the industry and work not just to improve the process, but to fundamentally change the focus. The 19th Avenue episode was a one of many disputes which QRAMA believed were fundamentally wrong for all parties involved, not just the resident manager and some owners. We recognize it is a fundamental of our democratic society that we have rules and regulations and complex arrangements to identify and resolve differences which cannot be settled around the table, or by negotiation and mediation. We understand fully that especially in community living, there is a give and take requirement for harmonious living, and indeed this can be one of the attractions for owners, investors, residents and holiday makers. But all too often disputes are often protracted, time consuming, costly and angry events which all too often result in resolution at the lowest common denominator. To that end we have been strong supporters of the initiatives of the Queensland Government to provide greater access to education and understanding of the community and strata title industry, so that all parties have a greater understanding of all the aspects of community living. To that end, owners have to understand that this type of closer living requires a different approach to coexistence than the old traditional suburban block in the traditional suburb. The challenge is to understand that in new communities and indeed in new mixed use high rise developments, three or more activities might be taking place in the different levels and strata of the scheme. The issues surrounding the 19th Avenue dispute went right to the heart of the management of the building and the development of its strategic policy. The fact that a decision by the required majority percentage of owners was challenged by opposing complainants was not only against the spirit and content of the legislation, but against the expressed desire of the majority of owners. The adjudication was determined in an exercise of “good reason” and it has been in itself heartening. The majority of owners took a commercial decision to change from the standard module to the accommodation module. There are a whole range commercial reasons which were important for the economic future of the building, which was in the majority involved in holidaying letting. The adjudication decision was one that was vital for the resident management industry, as it validated the principal of the length of time for management agreements to recognize the realities of commercial life and the need to demonstrate to financial institutions a degree of tenure certainty. The overall issue also boiled down to definitions of words used in the legislation. The recommendation that the word “majority” should replace “predominantly” has provided significant clarification for the resolution of this matter
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