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Home » Strata Managers » Strata Manager NSW » NSW: What to Expect from Your Strata Manager

NSW: What to Expect from Your Strata Manager

Published October 22, 2020 By Allison Benson, Kerin Benson Lawyers 3 Comments Last Updated February 19, 2025

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This article about what to expect form you Strata Manager has been supplied by Michela Alesse and Allison Benson, Kerin Benson Lawyers.

What strata owners should expect from their strata managers and what services are and are not included as part of a strata manager’s duties can be a heated topic.

The Acts dealing with a strata manager’s functions are analysed below.

Under section 3 of the Property and Stock Agents Act 2002 (formerly known as the Property Stock & Business Agents Act 2002), strata managers are included in the definition of “agents” and under section 4C of the Property and Stock Agents Regulation 2014 strata managers may exercise the following functions:

  1. “A strata managing agent who holds a class 1 or class 2 licence may exercise all strata managing agent functions.
  2. Despite subclause (1), a strata managing agent may not authorise the withdrawal of money from a trust account unless the strata managing agent is the licensee in charge of the business to which the trust account relates.”

Section 52 of the Strata Schemes Management Act 2015 provides that:

  1. “An owners corporation may, by the instrument appointing a strata managing agent or some other instrument, delegate to the strata managing agent—

    1. all of its functions, or
    2. any one or more of its functions specified in the instrument, or
    3. all of its functions except those specified in the instrument.
  2. An owners corporation must not delegate to a strata managing agent its power to make—

    1. a delegation under this section, or
    2. a decision on a matter that is required to be decided by the owners corporation, or
    3. a determination relating to the levying or payment of contributions.”

This means that unless the strata management agreement restricts the strata manager, they may be delegated power to make decisions that are not required to be resolved, specially resolved or unanimously resolved by the owners corporation at a general meeting. Some common examples of decisions that must be made by the owners corporation at a general meeting are:

  • setting contributions to the administrative or capital works fund;
  • amending or adding to the by-laws for the scheme;
  • approving additions or alterations to the common property;
  • approving a lease of part of the common property.

Section 54 further specifies that a strata manager may exercise the Strata Committee’s functions:

  1. “The instrument of appointment of a strata managing agent may provide that the strata managing agent has and may exercise all the functions of the chairperson, secretary, treasurer or strata committee of an owners corporation or the functions of those officers or the strata committee specified in the instrument.
  2. However, the chairperson, secretary, treasurer and strata committee of an owners corporation may continue to exercise all or any of the functions that the strata managing agent is authorised to exercise…”

The role of a strata manager is, therefore, that of a “facilitator” of the activities and duties of an owners corporation; a strata manager can represent the owners however they cannot make decisions on behalf of the owners corporation. The exception to this is if they have been delegated power by the owners corporation when they are appointed to approve and pay expenses (generally only a minor amount) on its behalf. In which case, the strata manager exercises their delegated authority to approve and pay the expense.

For a more specific description of a strata manager’s responsibilities, you should refer to the strata management agreement with your owners corporation.

The agreement will usually detail the basic functions of a strata manager included in the yearly fee payable by the owners corporation to the strata managing firm (Schedule “A” fees); the agreement will also include the additional services that could be provided by a strata manager at additional costs for the owners corporation (these are often known as Schedule “B” fees). Examples of additional services that a strata manager may provide at additional cost include dealing with third parties, such as lawyers and local authorities, in connection with redevelopment/sale of common property and acting for the owners corporation in the NSW Civil & Administrative Tribunal.

If you are in doubt as to what your strata manager can and cannot do for you, we suggest that you contact your strata manager and obtain a copy of the agency agreement.

Michela Alesse and Allison Benson
Kerin Benson Lawyers
E: allison@kerinbensonlawyers.com.au
P: 02 4032 7990

Please note: This is not intended to be legal advice. You should seek legal advice specific to your situation.

This post appears in Strata News #418.

Have a question about what to expect form you Strata Manager or something to add to the article? Leave a comment below.

Read next:

  • NSW: Q&A Strata Manager Complaints and Bullying
  • NSW: Q&A Strata Management Quotes and Appointments

This article has been republished with permission from the author and first appeared on the Thoughts from a Strata Lawyer website.

Visit our Strata Managers, OR NSW Strata Legislation pages.

Looking for strata information concerning your state? For state-specific strata information, take a look here.

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About Allison Benson, Kerin Benson Lawyers

Allison is a strata lawyer who has provided general strata advice, acted in strata disputes (including building defect disputes) and worked with clients in preparing and enforcing by-laws and strata management statements, since 2008. From 2012 onwards, Allison has acted exclusively on behalf of owners corporations and lot owners in respect of both strata and community association disputes and building and construction disputes.

Allison has extensive experience in commercial litigation and dispute resolution, having represented clients in contractual claims, interpretation of by-laws and rules, Home Building Act claims and levy recovery claims at all levels of court proceedings, including in the Court of Appeal and in the former CTTT (now the NSW Civil and Administrative Tribunal known as NCAT). Allison’s knowledge across a variety of strata schemes matters enables her to advise owners corporations, lot owners and other interested parties on a range of issues and to represent their interests both informally and before the courts.

Allison is a member of the Australian College of Community Association Lawyers (ACCAL), the Newcastle Law Society and the Society of Construction Law Australia. She holds a Bachelor of Laws (Hons) from Macquarie University and a Bachelor of Business from the University of Newcastle.
Allison's LinkedIn Profile.
Allison is a regular contributor to LookUpStrata. You can take a look at Allison's articles here .

Comments

  1. Lorraine Linstead says

    May 24, 2021 at 7:57 am

    My unit (rental property) was damaged due to a roof leak. My tenant had to move out. Despite dozens of emails to the strata manager, it took six months to get the second required quote for repairs. I lost a good tenant. The insurer provided lost rent for the period of the repairs but did not cover any of the six months I waited for it to begin repairs. My property manager contacted the Strata Manager on dozens of occasions without success. The director of the Strata Management Company says the company was not able to proceed sooner since the Strata Committee had not approved the repairs. But it was the Strata Management company that did not seek the second required quote in a timely manner nor did the Strata Manager follow up each time my Property Manager did. Who can be held responsible and who should take accountability? The issue is going to go to the NSW Tribunal. The Strata Manager declined mediation. Which part of the legislation should be used in our argument?

    Reply
    • Nikki Jovicic says

      May 26, 2021 at 7:38 am

      Hi Lorraine

      We wish you all be best in resolving the matter. Please note, we are unable to offer legal advice and can only provide responses to general strata questions rather than specific situations.

      Reply
    • Liza Admin says

      May 31, 2021 at 7:39 am

      The Following response has been provided by Allison Benson, Kerin Benson Lawyers Pty Ltd:

      Hi Lorraine

      Thanks for your comment. You need to seek legal advice that is tailored to your situation. I would generally look at what the delegations were to the strata managing agent and what their instructions from the strata committee and owners corporation were.

      Please let me know if you would like Kerin Benson Lawyers to provide a cost agreement for reviewing your evidence and providing advice.

      Reply

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