19 Jul Start date set for upcoming Strata Law Reforms
Strata Law Reforms
As you are aware, the Strata Schemes Management Bill 2016 will commence on 30th of November 2016. The reforms cover a wide range of topics with a number of them related to Strata Managers, of note are the following…
Strata Managers will be required to disclose whether they have received any third party commissions for the previous 12 months at each annual general meeting. The owners corporation will then decide if it was acceptable for the Strata Manager to be able to accept commissions for the next year. If a Strata Managers fails to disclose commissions, the NSW Civil and Administrative Tribunal will be able to make an order that any commissions accepted in the previous 12 months be paid to the owners corporation.
Strata Managers will not be allowed to receive any gifts or benefits over a certain dollar value in relation to their role. They will be able to attend conferences or training courses in connection with their duties.
Strata Managers will be required to disclose any links to the developer of the scheme when they are appointed to the role.
The NSW Civil and Administrative Tribunal will have greater powers to remove Strata Managers when they have failed to perform their duties in an acceptable standard.
Strata management contracts will be limited to one year in the first year, and then up to 3 years after that first year.
For more information, visit the Major changes to strata laws web page at Fair Trading NSW.
If you would like to discuss how these changes may impact your relationship with your clients going forward, then please feel free to contact us. We will be happy to assist.
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