Warning on strata titles

Press, Volume CXI, Issue 32797, 23 December 1971, Page 18

Warning on strata titles

(N.Z. Press Association? WELLINGTON, Dec. 22.

“While the new stratatitle legislation would certainly make it easier to find finance for high-rise accommodation development, it could also create a breeding ground for future disputes among tenantowners,” said Mr A. D. P. Williams, the managing director of Williams Development Holdings, Ltd.

“This will have to be watched carefully,” he said. Williams Development Holdings has been involved in the development of apartment buildings in Christchurch and Wellington. “There is no doubt that strata titles should stimulate apartment building and urban renewal, and that we shall benefit as developers in this field,” said Mr Williams. “However, I have seen the

pitfalls which have .resulted from this style of legislation overseas, and the trouble caused when individual owners are not prepared to be good neighbours. “These situations have so far been safeguarded in New Zealand, where the flat owners are shareholders in the one company, and have had

to abide by a majority decision.

"In the interest of the individual owners, the legislation must make very clear provision for the election of administration committees in iown-your-own apartment

buildings, and to give them full authority to maintain and control the building, and, in particular, its public areas and facilities.

“With proper safeguards built in, the proposed legislation can only help building development and should make it easier for the own-your-own purchaser to borrow finance.

“Under existing circumstances, most leading institutions have declined to provide mortgage finance to individual owners. Provided the proposed legislation enables those institutions to provide more funds for this type of home ownership, then it will be a major step in the right direction towards meeting the strong economic and social need for owner-occupied apartments,” said Mr Williams.