Strata managers in NSW will have new duties around best interests and due diligence when the next phase of state reforms takes effect on October 27.

Building managers will have to: act in the best interests of the owners’ corporation; act with due diligence towards safety, repair and maintenance problems; disclose to the owners’ corporation benefits, financial interests and relationships with original owners and developers.

NSW Fair Trading will use new investigative and enforcement powers to ensure owners’ corporations meet their duty to repair and maintain common property.

It will investigate potential breaches, including requiring documents and answers, recording people, making records and entering premises.

If a breach is found, Fair Trading can seek an enforceable undertaking, issue a compliance notice requiring work, issue a fine or take court action.

It can also apply for an order to appoint a strata managing agent to take over a scheme. 

The first changes under the reform package took effect in July and the final stage will follow in April next year, including new rules around planning for repairs and maintenance. 

The insurance industry has generally welcomed the changes as improving transparency and boosting confidence in strata living. A guide to the changes is available here.