strata

24

Apr
by

NSW 2025 Strata Law Reforms

 

24th April, 2025

 

In February 2025, major changes to strata laws came into effect in New South Wales. These reforms mark a significant shift in how strata properties are managed. Designed to increase transparency and accountability, the new laws aim to better protect owners corporations and build greater trust in strata management.

 

Strata Managers Must Act in Owners’ Best Interests

Strata managers are now legally required to act in the best interests of the owners corporations they serve. This includes disclosing any commissions, connections, or financial incentives that may influence their decisions. The goal is to eliminate conflicts of interest and promote fairer, more ethical management practices.

 

Mandatory Reporting and Tighter Oversight

To ensure ongoing transparency, strata managers must now provide key information to owners corporations every six months. This includes financial reports, maintenance updates, and service agreements.

To enforce these obligations, NSW Fair Trading has introduced a dedicated Strata and Property Services Taskforce. Non-compliance may result in penalties of up to $110,000, signalling the government’s serious approach to compliance and consumer protection.

 

Increased Disclosure Obligations: What’s New?

In addition to regular reporting, strata managers now have expanded disclosure requirements. These include:

  • Connections with suppliers and developers: Managers must clearly disclose any professional or financial ties, including the nature of those relationships.
  • Commissions and training services: Any benefits received — such as referral fees, commissions, or paid training (where compensation is provided for educational services) — must be reported to the owners corporation.
  • Financial transparency: Detailed financial statements are now mandatory. Insurance quotes must also include full breakdowns of commissions and broker fees.
  • Real-time updates: If any new relationships or financial interests arise during a manager’s tenure, these must be disclosed immediately.

These additions are aimed at giving owners a clearer understanding of who is involved in managing their property — and why.

 

Why This Matters to Buyers and Conveyancers

For prospective buyers, these changes offer better insight into the operations of a strata scheme before purchasing. You’ll have a clearer view of financial responsibilities, third-party relationships, and overall governance.

For conveyancers, the reforms highlight the growing need for thorough due diligence. With new disclosure obligations in play, reviewing documents closely is critical to identifying potential risks and helping clients make informed decisions.

 

 

At Bangalow Conveyancing, our conveyancing team stays on top of every legal update so you don’t have to. We’ll help you navigate the 2025 reforms, understand disclosure documents, and ensure your rights are protected throughout the process.

Get in touch today for expert guidance on buying, selling, or managing strata property in NSW.

If you found the information in this blog post helpful, check out our other regularly updated blog posts.