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  • #77612
    tina
    Flatchatter

      The following email from NSW Fair Trading was addressed to all strata committee members in the Strata Hub database.

      NSW Fair Trading asked me to “share this email with the owners in your strata scheme”.  If your strata committee members do NOT have their email addresses in Strata Hub, you will NOT see this email.

      Guidance on strata managers’ new disclosure duties
      Dear strata committee member,
      We are writing to inform you about the increased disclosure obligations that strata managers will have from 3 February 2025.

      If you have a strata manager, or may appoint one in the future, please read this email and share it with the owners in your strata scheme.
      What is this about?
      New laws will require your strata manager, if you have one, to disclose more information, more frequently to the owners corporation. This includes details about:
      •the strata manager’s connections with suppliers and developers
      •commissions and training services they may receive.
      If they assist your strata scheme to secure insurance quotes, these quotes must have a breakdown of certain costs. Strata managers will be banned from getting a commission on insurance – if your scheme obtained the quote and arranged for its payment independently, without their help.
      How do the changes impact me?
      The new disclosure obligations will help your owners corporation to make the best decision about:
      •your current strata manager’s appointment
      •the appointment of a new strata manager
      •how you work with your strata manager.
      This is thanks to the improved transparency you will have of how they manage your scheme.
      You can see our strata living guide for an overview of the new disclosure laws. Visit https://www.nsw.gov.au/housing-and-construction/strata/strata-living-guide
      Understanding strata managers’ new disclosures in more detail
      Currently, your strata manager can only accept any commission or training service linked with their management of your strata scheme if:
      •they include the details in the agency agreement. This is the contract the owners corporation negotiates with them when the strata manager is being appointed. Or,
      •they gain approval first at a general meeting of the owners corporation.
      From 3 February 2025, your strata manager’s approval request at a general meeting for a commission or training service must include a new written explanation. This will need to:
      •include why approval is in the owners corporation’s interest
      •disclose details, such as the commission amount.
      The owners will then review and decide on whether to approve the request.
      From 3 February 2025, a strata manager will also need to:
      •make certain disclosures before they are appointed to your scheme about:
      ◦suppliers they routinely use
      ◦if they have given advice about strata plans or community land plans to your building’s developer in the last 2 years. Such advice may indicate that the strata manager has an ongoing relationship with the developer which may be a conflict of interest.
      •make ‘real time’ written disclosures – as soon as they become aware of any connections or interests they have with your scheme or suppliers.
      •disclose more information at your annual general meeting (AGM). This includes:
      ◦any connections they have with suppliers or the building’s developer
      ◦connections from the previous 12 months.
      •provide clearly itemised quotes for insurance policies. This includes setting out commission and insurance broker fee amounts – and who these are ultimately paid to. The base premium amount of the insurance and GST will also need to be clearly set out.
      What if my strata manager does not comply?
      From 3 February 2025, you can make a complaint to NSW Fair Trading if you believe a strata manager has breached their new disclosure obligations. Visit https://www.nsw.gov.au/departments-and-agencies/fair-trading/complaints-and-enquiries/housing-and-property/real-estate-strata-and-property-management
      Where can I find out more?
      We have more details about the increased disclosure requirements on our website. Visit https://www.nsw.gov.au/housing-and-construction/strata/serving-on-a-committee/strata-laws#toc-increased-disclosure-obligations-for-strata-managers
      We will also provide key updates in the strata section of our website once the law changes start. Visit https://www.nsw.gov.au/housing-and-construction/strata

      NSW Fair Trading
      fairtrading.nsw.gov.au

      NSW Fair Trading acknowledges the Traditional Custodians of the lands and pays respects to Elders past, present and emerging. We acknowledge the Aboriginal and Torres Strait Islander staff working with NSW Government.
      NSW Fair Trading is part of the Department of Customer Service.
      About this email
      You have received this email  because it is about your use of the Strata Hub or has regulatory or compliance information for your role in a strata scheme in NSW.

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