Impediments to effective strata governance

Abstract

Effective governance is an essential component in the establishment of a successful strata title scheme. This chapter examines the role and influence of developers in the establishment of governance arrangements prior to and following the registration of a strata title scheme in Australia. The chapter examines the rights of the developer in the initial stage of project development and the consequences of such rights for a scheme’s reputation, functionality and viability. Drawing on a case study of strata development in Queensland, the paper identifies common practices that thwart effective governance. The case highlights that poor decision-making from the outset can impose a structure which leads to poor outcomes for the owners’ corporations for many years to come.