The Real Estate Institute of NSW (REINSW) says the unacceptable conduct of a few strata operators is a timely reminder to professional services providers to always act in your clients’ best interests or you will pay a steep reputational – and even a custodial – price.
According to the REINSW, the recent media spotlight on a few bad operators is a wake-up call for all professional services providers.
“The main lesson of the recent focus on unethical strata management companies is clear: if you engage in activities that are contrary to your clients’ best interests for your own gain, you will destroy your reputation,” REINSW CEO Tim McKibbin says.
“It takes years to build trust and seconds to destroy it. Strata managers that pursue short term gain by deceiving their clients also face the potential of a criminal prosecution and a custodial sentence.
“The overwhelming majority of strata managers do extremely important and valuable work for their clients. For these professionals, the recent focus on strata is a timely reminder to ensure your knowledge and understanding of compliance and disclosure obligations is completely up to date.
“Strata law is complex and reforms to the way the industry operates are coming. The REINSW is ready to assist quality, professional strata managers to ensure they’re prepared amid a challenging, and changing, time for the industry,” he says.
As the NSW Government pursues reforms to improve regulation and increase professional standards in the strata industry, the REINSW has a zero tolerance approach for those engaged in deceptive conduct.
“Part of any collective effort between industry and Government to lift professional standards and increase consumer confidence in strata should include deterrence, which means appropriately punishing those who knowingly breach their obligations,” Mr McKibbin says.
“There is no place for criminal behaviour in the strata industry.”
The REINSW has developed bespoke training and resources to provide advice and guidance to strata managers, including agency agreements which carefully and simply take the consumer and the managing agent through the formation of the strata management agreement.
Watch the REINSW webinar outlining the obligations of strata managers including disclosure requirements here.
