NSW will introduce stricter rules on matters such as commissions and conflicts of interest and increase the penalties that can be imposed on strata agents.The government will consult with the industry ahead of introducing legislation in August.
The changes proposed are to increase maximum penalties that can be imposed on strata agents, including for the failure to disclose "information about commissions", and strength the requirements to disclose conflicts of interest.The minister also said the reforms would include "banning agents from receiving a commission on insurance products when they don't play a role in finding the best deal for residents".
Stephen Brell stood aside from his position as the NSW president of the industry peak body, the Strata Community Association, following the ABC report.. Without adequate resources to conduct the inquiry itself, it brought in accounting firm McGrathNicol to conduct the review and required Netstrata itself to pay for it.
"The new laws are designed to take immediate action to help restore confidence in living and investing in strata schemes, ensuring more people consider apartment living as a housing option."