For strata managing agents
A strata managing agent is required to exercise reasonable skill, care and diligence in carrying out their duties. They must act honestly, fairly and professionally with all parties. They must act in the owners corporation’s best interest at all times unless it would be otherwise unlawful to do so.
A strata managing agent must be licensed under the Property and Stock Agents Act 2002, and has duties and responsibilities under that Act, the Strata Schemes Management Act 2015, and the Community Land Management Act 2001.
Disclosure of commissions and training services
At each Annual General Meeting (AGM), the strata managing agent is required to disclose whether any third party commissions or training services:
- have been received while exercising the functions of the scheme for the previous 12 months, and the particulars of any such transaction
- are likely to be provided to or paid for the agent in the following 12 months, and the estimated amount of value of any such commissions or training services.
The disclosure of these details must be recorded in the minutes.
If these change, the strata managing agent must disclose to the strata committee the variation and give an explanation. These requirements do not apply to training services or remuneration provided directly to a strata managing agent by their employer agency.
If an agent does not disclose commissions or training services that they have received, the owners corporation can apply to the Tribunal to make an order that any commissions accepted by the agent be paid to the owners corporation and a fine of up to $2,200 can be issued.
Disclosure of any personal or commercial relationships with service providers
A managing agent who refers an owners corporation to a service provider must disclose if they have a personal or commercial relationship with that service provider. They must also disclose the nature and value of any rebate, discount, commission or benefit they may receive, or expect to receive, and refer the owners corporation to the service provider. This enables the owners corporation to make a value judgment on whether they are getting a good deal on the services.
Disclosure of any connection with a developer
A strata managing agent must disclose whether they are connected with the original owner or developer of the strata scheme. The agent must also disclose if they have any direct or indirect monetary interest in the strata scheme. Failure to do so can lead to a fine of up to $5500.
Disclosure of a potential agency
If an agent intends to act (or offers to act) for an owners corporation and is aware that another agent is already managing that property, the agent must disclose the agent’s intention to act or offer to act to the current agent.
Strata managing agents must not receive gifts or other benefits
A strata managing agent must not request or accept a gift or other benefit from another person.
However, a strata managing agent may accept the following:
- remuneration paid to a strata managing agent or an employee or contractor of a strata managing agent by an owners corporation
- a monetary commission provided to a strata managing agent, if the provision of such a commission is in accordance with the terms of appointment of the strata managing agent by the owners corporation or has been otherwise approved by the owners corporation, or
- a training service provided to, or paid for, a strata managing agent, if it was related to strata management functions and the provision or payment is in accordance with the terms of appointment of the strata managing agent by the owners corporation or has been otherwise approved by the owners corporation, or
- a gift or other benefit that is not over the amount of $60.00.