281. “What do they do?” How strata managers are failing to show their value to owners
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I’m bringing you an edited version of my live chat with Dr Nicole Johnston, which took place over on our Facebook page last Friday. Nicole shares the findings from her world-first research into strata insurance-related services – particularly, how strata managers can do better when providing such services to owners corporations. We cover:
- how strata managers are failing to communicate their value to their clients
- the insurance commission ‘backflip’ from owners
- the power of a broker
and more.
Links mentioned:
- Get the transcript here!
- Dr. Nicole Johnston’s Report: A data-driven holistic understanding of strata insurance in Australia and New Zealand
- Episode 243. Get ready for a strata insurance game changer – with Dr Nicole Johnston
- Episode 172. Exposing Australia’s Building Defects Crisis, with Dr Nicole Johnston
- Episode 277. The $800 leak fixed for $2.5m: how we’re getting strata remedial works wrong
- Section 260 – Personal liability of officers of owners corporations and others – Strata Schemes Management Act 2015 (NSW)
- Episode 280. Is it time to reopen the pool? | Retrieving refundable bottles from the bins
Thanks Amanda!!
Could I please ask you a question? If a Strata Manager knows all the secrets from a Strata Scheme does the Strata Manager liable if the Strata Manager does not let buyers or insurance companies disclose the matters that will affect them?
If they act as secretary, chairperson and treasure would not be expected of them to tell the whole truth and nothing but the truth?
I hope we have more transparency and accountability from them.
Thanks again!!
Fernanda
Hi Fernanda, if the strata manager controls the books and records of the owners corporation (as is usually the case) then they are required to give access to those records, upon request by an owner or their authorised representative. Purchasers should make a request to inspect the records if they want to find out about the building (the vendor can authorise them). As for insurers, the Owners Corporation should always disclose matters that may affect insurance. A good strata manager will advise their client of this obligation, but ultimately the disclosure responsibility is the Owners Corporation’s, not the strata manager’s.
Thanks Amanda
If the Strata Manager gets payment from the OC to act between the broker and the OC, do you think is too much to ask them to be transparent at the time of an insurance renewal? So I believe they should be liable if they don’t disclose whatever they know.
Thanks again!!
Fernanda
Hi Fernanda, it’s the law in NSW that a strata manager must disclose insurance commissions received. This is done at each AGM.
Amanda.