The NSW Government has implemented a series of amendments concerning strata legislation disclosure requirements and increased the powers of NSW Fair Trading to promote transparency and accountability amongst strata managing agents and owners corporations. These changes, which came into effect in February 2025, primarily concern the disclosure of commissions, training services, and related associations by strata managing agents and the strengthening of strata maintenance obligations. There are notable differences between new and existing owners corporations, with new compliance requirements, increased inspection powers and penalties to ensure adherence to the legislation.
In this article, we explain:
Before appointment, the strata managing agent must disclose and secure approval at a general meeting covering the following areas:
All commission and training services that will be received.
Their approximate value.
The nature of the relationship with the provider.
Why the agent believes it aligns with the best interests of the owners corporation.
Any associations with a supplier who routinely provides goods or services to other properties the agent manages.
The property’s original developer relationship if they’ve managed the scheme within the last two years.
This information should be provided in writing, detailing the nature of each relationship and the kinds of goods or services provided.
At the time of reappointment, all of the above points apply with some additional changes:
Should there be any changes during the agent’s tenure, they must be communicated.
Before entering into a contract on behalf of the owners corporation, the managing agent must provide information on the commissions or training services.
Three insurance premium quotations should be provided and include:
If it hasn’t been possible to source three quotes, then a reason for this should be provided.
To help ensure the repair and maintenance of common property, NSW Fair Trading’s powers to inspect properties and provide penalties have significantly increased.
NSW Fair Trading may now inspect strata schemes in the following ways:
In an effort to ensure better compliance from owners corporations, NSW Fair Trading can now issue penalties:
Up to $22,000
for serious breaches.
Additional daily penalties of $2,000
for continuing violations.
Before renewing your agreement, take a moment to compare your options. Our quick and easy form can be completed in less than 30 seconds.
These changes are a substantial step towards fostering more transparency in the strata management landscape. By increasing disclosure requirements and reinforcing maintenance obligations, the NSW Government has empowered owners corporations with the information they need to make informed decisions. At the same time, they have granted NSW Fair Trading greater authority to inspect properties and penalise non-compliance, thus instilling a more accountable culture amongst owners corporations.
As we navigate these changes together, we anticipate a fairer and more transparent environment for everyone living and working in strata.
This article is edited by Lauren Shaw Regional General Manager and Licensee-in-Charge on February 2025.
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