Tough New Strata Laws Pass Parliament: Greater Transparency and Penalties for Agents

Strata managing agents will now face stringent new regulations aimed at cracking down on undisclosed kickbacks and enhancing transparency in their dealings. The newly passed laws empower owners’ corporations to make key decisions regarding buildings and common property in townhouses and apartments, with strata managing agents assisting. These changes come in response to widespread concerns about accountability and conficts of interest in the strata sector.

Key reforms in the legislation include:

• Increased Penalties: Stricter fnes and higher penalty infringement notices for agents who fail to meet their obligations to disclose commissions.

• Enhanced Disclosure Requirements:

Strengthening the rules around conficts of interest, ensuring agents are transparent about any potential conficts.

• Ban on Insurance Commissions: Agents are now prohibited from receiving commissions on insurance products unless they actively seek out the best deals for residents.

• Empowered Enforcement: NSW Fair Trading has been granted greater powers to enforce compliance and crack down on unethical practices in the strata industry.

These reforms are supported by an $8.4 million investment in NSW Fair Trading’s resources, as outlined in this year’s state budget.

Minister for Better

Regulation and Fair Trading, Anoulack Chanthivong, emphasized the importance of these measures, stating:

“Building more highquality, higher density housing is a key pillar of the Government’s comprehensive plan to build a better NSW. We need people to have confdence to invest and live in strata schemes. These changes will help restore the confdence of the 1.2 million people already living in strata schemes.”

With these new laws, the government aims to strengthen trust in the strata system, ensuring better accountability and fairness for residents across New South Wales.