When the Developer Hangs Around Too Long

Responsibility for the structure borne of the developer’s creativity and courage passes to the owners of a strata scheme at a point not long after the initial round of settlements. Like parents on the first day of school, some developers hang around a little too long.

They do this by holding proxies for owners and other forms of constraints over the voting and operation of parts of the development post settlement. Usually this relates to maintaining control, or attempting to do so until all of their apartments are sold, remembering that the developer’s profit is always in the tail. Others seek to maintain this control for other reasons. They may be staying on as an owner and think they know best, they may be holding on to the management rights or they may just want to protect the building from the new owners as a lasting reminder to the world at large of their talent as a developer. Whatever the reason, these actions always end in tears.

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