The Strata Titles Amendment Act, which came into effect on May 1st 2020, imposes a number of statutory duties on strata managers to make them more accountable and to encourage higher standards of professional service to be delivered to strata companies.
These statutory duties will be enforced by the strata company who has the right to terminate their contract if the Strata Manager breaches their duties.
The following Statutory Duties are required to be adhered to by Strata Managers:
- Strata Managers must act honestly and in good faith (sect 146)
- Must disclose to the strata company any conflict of interest or commission received (sect 147)
- Must not commence proceedings on behalf of strata company at SAT (sect 143)
- Must not sign any documents on behalf of strata company (sect 143)
- Must exercise a reasonable degree of skill, care and diligence (sect 146)
- Must have a good working knowledge of the Strata Titles Act (sect 146)
- Must have specified educational qualifications – to be confirmed by the regulations (sect 144)
- Must obtain national criminal record checks and provide a criminal record statement to the strata company (sect 144)
- Must have professional indemnity insurance coverage (sect 144)
- Must have a written contract with the strata company (sect 145)
- Must hold the strata company’s money in a seperate, pooled or dedicated trust account (sect 148) that can be audited (sect 150)