Strata managing agents face tough new laws that crack down on secret kickbacks through greater transparency and higher penalties for agents doing the wrong thing.
Strata laws put owners’ corporations in charge of making key decisions on the buildings and common property of townhouses and apartments, usually with the assistance of a strata managing agent.
The new laws will ensure tough action against agents who don’t properly declare conflicts of interest.
Key changes include:
- increasing the maximum penalties and penalty infringement notice amounts for existing agent obligations to disclose information about commissions
- strengthening the conflict-of-interest disclosure requirements
- banning agents from receiving a commission on insurance products when they don’t play a role in finding the best deal for residents
- strengthening NSW Fair Trading’s enforcement and compliance powers.
The higher penalties, greater transparency and new enforcement powers follow an $8.4 million investment in more resources for NSW Fair Trading to tackle issues in strata and property services in this year’s budget.
Minister for Better Regulation and Fair Trading Anoulack Chanthivong said, “Building more high quality, higher density housing is a key pillar of the Government’s comprehensive plan to build a better NSW so we need people to have confidence to invest and live in strata schemes.
“The Government has wasted no time in tightening controls to respond to community concerns about accountability and conflicts of interest in the strata industry.
“These changes will help to restore the confidence of the 1.2 million people already living in strata schemes and change the perception that strata managing agents can take advantage of owners without consequences.”
