Section 60 of the Strata Schemes Management Act 2015 (NSW) places a responsibility on strata managing agents of strata schemes to report the following matters at annual general meetings:
- Whether any third-party commissions or training services have been provided to or paid for the agent in connection with exercising the functions of the scheme for the previous 12 months, and the details of any such transaction.
- The estimated amount or value of any such commissions or training services that the agent believes are likely to be provided to or paid for the agent in the following 12 months.
The disclosure of such information must be recorded in the meeting minutes.
‘Training services’ is defined within the Act to include a training course or service (including attendance at industry events such as conferences).
If strata managing agents do not fulfil such responsibilities then the owners corporation can apply to the Tribunal, to make an order that any commissions accepted by the agent are to be paid to the owners corporation. In addition, strata managing agents can receive a fine of up to $2,200 for failure to disclose such information.
Under s 57 of the Act it will be an offence for an agent to receive commissions or training services that are not of a kind permitted by the agent’s terms of appointment or approved by the owners corporation.
Additional disclosure requirements of strata managing agents, include:
As soon as practicable after becoming aware that commissions or training services provided to or paid for the agent differ from any estimate, the strata managing agent must disclose the variation to the strata committee and provide an explanation.
Although, it should be noted that these requirements do not apply to training services or remuneration provided directly to a strata managing agent by their employer agency.
Written with assistance by Bonnie Elliott, Paralegal