New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 2015 - SECT 60

60 Disclosure by strata managing agents

(1) A strata managing agent for a strata scheme must report the following at the annual general meeting of the owners corporation for the scheme--

(a) whether any commissions or training services have been provided to or paid for the agent (other than by the owners corporation) in connection with the exercise by the agent of functions for the scheme during the preceding 12 months and particulars of any such commissions or training services,

(b) any such commissions or training services and 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,

(c) whether, during the preceding 12 months--

(i) a supplier of goods or services for the strata scheme has become connected with the agent, or

(ii) an original owner of the strata scheme has become connected with the agent,

(d) the following information--

(i) the suppliers of goods or services for the strata scheme who are connected with the agent,

(ii) the original owners of the strata scheme who are connected with the agent,

(iii) for subparagraphs (i) and (ii)--details about the nature of the relationship between the agent and the supplier or original owner,

(iv) for subparagraph (i)--details about the goods and services provided by the supplier.

: Maximum penalty--

(a) for a corporation--500 penalty units, or

(b) otherwise--100 penalty units.

Note : 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 (see section 57).

(2) A strata managing agent must, as soon as practicable after becoming aware that commissions or training services provided to or paid for the agent (other than by the owners corporation) differ from the commissions or training services or any estimate of them disclosed at the annual general meeting, disclose to the strata committee the variation and give an explanation for the variation.

: Maximum penalty--

(a) for a corporation--500 penalty units, or

(b) otherwise--100 penalty units.

(2A) A strata managing agent must give written notice to the owners corporation before entering into a contract for the purchase of goods or services if either or both of the following apply--

(a) under the contract, a commission or training service of the kind referred to in section 57(3)(b) or (c) may be provided to or paid for the agent,

(b) the contract is with a person connected with the agent.

: Maximum penalty--

(a) for a corporation--500 penalty units, or

(b) otherwise--100 penalty units.

(2B) The notice must include the following--

(a) details, including the specific provision of the terms of appointment of the agent, if relevant, that demonstrate the payment of the commission or provision of the training service is permitted under section 57(3),

(b) details about the commission or training service, including the following--

(i) for a commission--the amount of the commission and the method of its calculation,

(ii) for a training service--the monetary value of the training service or, if that is not known, an estimate of the monetary value of the training service,

(c) details about the nature of the relationship between the person providing the commission or training service and the strata managing agent,

(d) details about why the contract is in the owners corporation's best interest,

(e) a statement that the strata managing agent believes that entering into the contract does not contravene the Property and Stock Agents Regulation 2022 , Schedule 1, section 11 and the reasons for the belief.

(2C) A strata managing agent must give written notice to the owners corporation as soon as practicable after becoming aware of the following--

(a) a supplier of goods or services for the strata scheme becomes connected with the agent,

(b) the original owner of the strata scheme becomes connected with the agent,

(c) the agent acquires a direct or indirect pecuniary interest in the strata scheme.

: Maximum penalty--

(a) for a corporation--500 penalty units, or

(b) otherwise--100 penalty units.

(2D) The notice must include--

(a) for subsection (2C)(a) and (b)--details about the nature of the relationship between the agent and the supplier or original owner, and

(b) for subsection (2C)(a)--details about the goods and services provided by the supplier.

(3) The Tribunal may, on application by an owners corporation or the Secretary, order a strata managing agent to pay to the owners corporation--

(a) the whole or part of the amount or value of any commissions or training services provided to or paid for the agent and not disclosed in accordance with this section, or

(b) the whole or part of the amount or value of any commissions or training services provided to or paid for the agent that are not of a kind or an amount disclosed by the agent under this section, if the Tribunal is satisfied that the disclosure of those things at the previous annual general meeting was not made in good faith.

(4) In this section--

"training service" means a training course or service (including attendance at industry events such as conferences).