STRATA REFORM NEWSLETTER #3:

WELCOME
In the last newsletter issued in May 2019 we provided details of changes with the Strata Titles Reforms, in relation to the duties of the Council members, developers and meeting changes. This newsletter will give you another glimpse of several changes to come into effect with the Act for Strata Managers and Council of Owners. We have delayed issuing this newsletter as we were waiting on the release of the draft regulations, which have now been released,but are still subject to change by Landgate prior to delivery to Parliament in November 2019.

STANDARDS FOR STRATA MANAGERS
A manager is not authorised to perform functions as a Strata Manager unless a contract is in force between the Strata Company and the Strata Manager.

• must act honestly and in good faith to the strata company
• must exercise a reasonable degree of skill, care and diligence
• must hold minimum education requirements as set out in the Regulations (the draft regulations currently require a principal of the business of a strata manager to hold a Certificate IV in Strata Community Management if they do not hold a licence as a real estate agent under the Real Estate and Business Agents Act 1978 or are not a local legal practitioner whom also must have completed 2 core units in Certificate IV Strata Community Management as well as 2 specific elective units in Certificate IV Strata Community Management and a designated person whom is not a principal must have completed 2 core units in Certificate IV Strata Community Management as well as 6 specific elective units in Certificate IV Strata Community Management)
• must hold a current police clearance must have a good working knowledge of the Strata Titles Act
• must not make improper use of information acquired as strata manager for a strata company to gain an advantage for themselves or someone else, or cause a detriment to the strata company
•  must not make improper use of the position of strata manager to gain an advantage for themselves or someone else, or cause a detriment to the strata company
• must take reasonable steps to ensure that the strata manager’s employees comply with the Act
• must have professional indemnity insurance to cover any loss arising from any act or omission of the strata manager
• must inform the strata company in writing as soon as a they are aware that they will obtain a financial benefit which conflicts with their duty to the strata company (ie: a conflict of interest)
• must inform the strata company in writing as soon as they are aware that they:
  • have received a commission or
  • are likely to receive a commission (such commission will have to be above a specified value as set out in the regulations and won’t include a small gift, such as a box of chocolates)
• must control the funds of the strata company in a trust account.
• must be able to account separately for money that the strata manager pays or receives on behalf of the strata company
• must provide the strata company, within a reasonable time-frame, with accounting information about:
  • the name and number of each account operated by the strata manager on behalf of the strata company
  • the balance of money held in those accounts
  • details of money paid to or received by the strata manager on behalf of the strata company, and
  • details of any transaction that the strata manager enters into on behalf of the strata company
• must give the strata company’s auditor access
  and any other information in relation to
  accounts operated on behalf of the strata
  company.

To date there is no prescribed licensing of Strata Community Management Businesses in Western Australia. It is currently a voluntary self-regulated process to ensure professionalism. Until such time as there is an industry approved Strata Community Management model of rules and regulations pertaining to Strata Community Management, SCA WA (peak body for Strata Community Managers launched in 2018 a Strata Management Practice Standard, a business certification program for strata management businesses and through an independent audit processes companies would be able to be audited on their internal procedures as well as contractual relationships with Strata Companies. We are so thrilled to announce that All Strata Management Services was the first and still is the only Strata Management Business Nationally that has been certified to date.