Newb is correct when he/she wrote about commissions. These are often included in strata agreements with agents on the understanding that they offset the alleged “low contract price” offered by the agent to manage the strata scheme. Newb is also right claiming that such commissions must be declared and are not always taken by agents.
Good for newb getting a better deal and saving 17%, which could be seen as the strata scheme pocketing the commission instead of the agent. Newb should watch out for a possible forthcoming hike in the agent’s management fee as this trough has been removed from his snout.
Some years ago I tried to place the same strata insurance cover directly with the insurer but was politely knocked back. The insurer said that her firm only deals with brokers or reps, such as strata agents. It was made as clear as a bell that no matter who places the insurance, eg a broker or strata agent, the commission “sweetener” will not change.