#55673
Jimmy-T
Keymaster

    The way this is dealt with is strata law is complicated but the principles of transparency are quite straight forward.

     Section 57 of the Act says strata managers may not receive gifts or commissions for services provided unless that is in their contract or approved by the owners corporation (in most cases, the strata committee).

    Section 60 of the Act says Strata Managers must declare any commissions they receive at the schemes’s AGM and imediately inform the strata committee of any commissions that differ from what was declared at the last AGM, as well as any changes that are likely to occur – i.e. offers that have been made to them that they are likely to accept.

    Failure to do so can lead to fines of up to $2200 and the Tribunal can order the SM to pay the commission received to the owners corp. Receipt of commissions for organising compulsory strata insurances are commonplace but frequently resented by the owners corps.

     

    The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.