New strata laws take effect
The new strata laws that took effect on 3 February 2025 in NSW have changed the way strata managing agents are required to disclose information to owners’ corporations.
These changes are designed to increase transparency and ensure that strata managers are upfront with owners about kickbacks and conflicts of interest. The expanded disclosure requirements mandate clear and timely information-sharing by strata managers.
With more than 87,000 strata schemes and more than 1.2 million people living in strata titled properties, such as apartments, townhouses and villas, across NSW, these reforms are vital in ensuring fairness and trust for everyone living in strata communities.
Under the new laws, strata managers must:
- Disclose any connections with suppliers and developers, including the nature of the relationships
- Provide detailed breakdowns of insurance quotes, including commissions and broker fees
- Report in real time if any new connections or interests arise during their appointment
- Provide enhanced annual reports to owners corporations which detail any supplier and developer connections.
Enforcing the new obligations
NSW Fair Trading will be enforcing these new obligations, with strata managers required to understand and comply with the new requirements, including auditing their previous disclosure practices to identify any gaps, and implement processes to ensure timely and accurate reporting under the new requirements.
Targeted compliance operations and education initiatives will embed recent reforms and improve consumer confidence in strata management.
Managers who fail to meet the new disclosure obligations may face penalties of up to $110,000.
These new rules form part of the second tranche of reforms the Government has passed through the NSW Parliament to improve the strata industry.
Next steps
A third tranche of reforms is currently being debated in the NSW Parliament and will increase accountability of developers to ensure initial strata levies are accurate so owners aren’t hit with higher fees once they move in, and will introduce financial hardship provisions for people struggling to pay their fees and protect owners from unfair contract terms.
For more information about the new strata laws, visit the NSW Fair Trading website.
What the strata regulations mean for landlords
These new laws don’t affect your tenants as such, but they serve as a timely reminder for strata titled property landlords of their obligations.
These include:
- provide notice of a tenancy to the owner’s corporation.
- give a copy of by-laws and any strata management statement to a tenant within 14 days of the tenant signing the rental contract unless notice has already been given under the Residential Tenancies Act 2010.
- give a copy of any changes to the by-laws and strata management statement to the tenant within 14 days of the change starting.
Ensuring your tenant understands all the strata bylaws for their complex is just some of the many responsibilities we undertake when managing your property. We keep you legal, look after your asset and give you the information you need to make informed choices about your property.
Whether it is from an investment or homeowner’s point of view, we’re always looking at innovative ways to help you get the best from your asset.
If you own a property and want to know more about our services, give us a call on 02 4956 9777 or pop into our Cardiff office for a chat. Or send us an email to: mail@newcastlepropertymanagement.com.au – we’d love to hear from you.
For property management tips check out our Facebook page.