THERE ARE ROUGHLY 3 million strata townhouses and apartments in Australia. The focus on highrise developments to address the housing crisis has seen a 7 per cent increase in the number of strata properties over the last two years. In Victoria, the government redevelopment plan for inner Melbourne proposes that 84 per cent of new […]

Owners corporations manage and administer communal property for apartments and other dwellings.  Recently certain high-profile owners corporations have come under media scrutiny. Dubious and unethical business practices have been exposed. These include kickbacks to contractors, phantom charges, inflated fees relative to the extent of work done, and near-invisible accountability. Over 2,000 people from across Australia […]

Residents of a modest red-brick apartment block on Rue des Perdus in our town’s bohemian French Quarter are amused to the point of frustration after being served yet another passive-aggressive email from the local Strata committee’s self-appointed compliance officer, old bastard Doug Barclay.    Read the article…………………………….

Major reform is needed to South Australia’s strata regulations to ensure buildings are well maintained, saving owners from taking massive loans for repairs and prospective buyers from purchasing derelict apartments, amid a spike in strata disputes.  Stakeholders in the housing industry said improvements were urgently needed as high-rise apartment blocks spring up across Adelaide in […]

The NSW government says there is “more to come” on strata reforms after last week passing legislation to improve disclosure and toughen penalties.  The legislation was introduced before Four Corners put the spotlight on the strata sector. The program followed an ABC report earlier in the year focused on NSW company Netstrata.   Read the article…………………………….

Strata managing agents face tough new laws that crack down on secret kickbacks through greater transparency and higher penalties for agents doing the wrong thing.  Strata laws put owners’ corporations in charge of making key decisions on the buildings and common property of townhouses and apartments, usually with the assistance of a strata managing agent.  […]

Consumer groups are pushing for a national inquiry into the strata management sector and a lawyers’ group has called for tougher state-level regulation following last week’s Four Corners program.  The Australian Consumers Insurance Lobby, Choice, Financial Rights Legal Centre and the Owners Corporation Network of Australia are among nine groups pressing Treasurer Jim Chalmers to […]

More stringent insurance disclosure rules may be just one of the repercussions from last week’s Four Corners program alleging malpractice in the strata sector.  Consumer groups have called for a national inquiry and tougher state-level regulation, while the role of commissions is again up for debate.    Read the article…………………………….

The Australian College of Strata Lawyers says independent and properly resourced enforcement agencies are needed to better protect property owners and sector-wide structural change is required on insurance commissions.  “All state and territory governments must take action to address the behaviour of the bad actors,” it says following Monday’s ABC Four Corners report. “In essence, […]

The Queensland and Victorian governments have expressed concern at strata management problems highlighted by Four Corners this week, while NSW says it would support a national inquiry.  NSW introduced a bill to parliament last month to toughen legislation after issues at residential strata properties were highlighted in an ABC investigation earlier this year. This Monday’s […]

Ten of Australia’s leading consumer groups have now written to the federal treasurer calling for an urgent inquiry into Australia’s strata management industry.  The open letter from Choice, the Owners Corporation Network, the Australian Consumers Insurance Lobby and seven other groups follows this week’s ABC Four Corners investigation, showing many apartment owners were being ripped […]

Australian insurance broking giant Steadfast Group (ASX: SDF) is in damage control after a Four Corners investigation revealed damning allegations that the company misled clients by participating in “undisclosed schemes to give strata management firms a cut of the fees apartment owners pay”.    Read the article…………………………….

Ten of Australia’s leading consumer groups have now written to the federal treasurer calling for an urgent inquiry into Australia’s strata management industry. The open letter from Choice, the Owners Corporation Network, the Australian Consumers Insurance Lobby and seven other groups follows this week’s ABC Four Corners investigation, showing many apartment owners were being ripped […]

The NSW Strata and Property Services Commissioner — responsible for overseeing strata governance and assisting in the regulation of the state’s property sector — has failed to publicly disclose more than 500,000 shares in a major real estate and strata services company.   Read the article…………………………….

Dr Smith* thought he’d retired to a nice suburb and complex in Sydney’s east when for the first time, as a strata committee member, he was confronted by other members who thought nothing of abusing him.  The stoush began when he simply suggested cleaning faecal matter from defective piping which had leaked onto his car […]

Lands Minister John Carey has today announced public consultation will open on 1 October 2024 on Landgate’s five-year review of the Strata Titles Act 1985.   The review will explore strata manager practices and standards, how to improve cost controls in strata schemes, alongside other opportunities to enhance strata living.   Read the article…………………………….

For the first time, a strata management company and an owners’ corporation have been prosecuted together by SafeWork NSW over a fatality involving an industrial gate. The worker’s employer was also prosecuted. The three fines issued by the court total $750,000, plus costs.    Read the article…………………………….

The NSW Strata and Property Services Commissioner — responsible for overseeing strata governance and assisting in the regulation of the state’s property sector — has failed to publicly disclose more than 500,000 shares in a major real estate and strata services company.   Read the article…………………………….

An owners’ corporation has lost a dispute over an 80% premium rise on its broker-arranged strata policy, after arguing the increase was made “without justification”.  The owners’ corporation demanded that Chubb reduce its premium, which was raised to $60,508 at renewal in May last year.    Read the article…………………………….

New legislation is focused on ending secret kickbacks on insurance policies and “weeding out bad players”, following the revelation of the Netstrata scandal earlier this year.  Minister for Better Regulation and Fair Trading, Anoulack Chanthivong expressed that “these reforms are critical to supporting confidence in investing and living in strata schemes”.    Read the article…………………………….

New laws designed to take immediate action to help restore confidence in living and investing in strata schemes are now before the NSW parliament.  The reforms which impose higher penalties and greater disclosure obligations on strata managing agents are aimed at ending secret kickbacks on insurance policies and weeding out bad players.   Read the article…………………………….

One of Sydney’s highest profile strata managers is appealing against a ruling that saw him banned for 10 years for a multitude of allegations, including failing to act with honesty, fairness and professionalism and accessing apartment buildings’ funds without approval.    Read the article…………………………….

Strata committees are being quoted up to 120 per cent more than individual homeowners for building and trade work, with lawyers and advocates warning of a surcharge applied to unsuspecting body corporates.  A survey by the Australian Consumers Insurance Lobby, released in April, found some maintenance and repair companies inflated strata unit quotes by up […]

Strata committees are being quoted up to 120 per cent more than individual homeowners for building and trade work, with lawyers and advocates warning of a surcharge applied to unsuspecting body corporates.  A survey by the Australian Consumers Insurance Lobby, released in April, found some maintenance and repair companies inflated strata unit quotes by up […]

Sydney strata manager Whitney Wang has been banned from practising for 10 years and his company has been stripped of its licence.  Mr Wang was the strata manager at the centre of an explosive meeting at the embattled Vicinity apartment complex in Canterbury in 2021 that became so hostile the police were called.   Read the […]

The NSW Government has renewed its focus on the strata management industry, this time looking to impose greater disclosure obligations with regard to insurance commissions and conflicts of interest to improve public confidence in apartment living.   Read the article…………………………….

Hardworking apartment owners are being slapped with soaring strata fees boosted by general inflation, rising insurance levies and building defects.  Although there is no official data source for strata levies, anecdotal evidence suggests fees increased 15 to 20 per cent on average over the past year, but up to 40 per cent in some cases.  […]

Amid an industry-wide reckoning, the Strata Community Association (SCA) has named a new president to guide operations across Australia and New Zealand.  Joshua Baldwin will become the organisation’s youngest president at 33, bringing 13 years of experience in the strata industry to the leadership role.   Read the article…………………………….

Strata agents will be targeted in a raft of new laws designed to stop dodgy dealings, ban shady commissions, and improve trust in strata schemes following a surge in complaints.  NSW Fair Trading received 965 complaints about strata agents in the five years to 2023, most commonly related to rules of conduct and finances. In […]

A recent scandal involving one of the nation’s biggest strata management firms has led the NSW government as well as the industry’s advocacy body to mandate a change in practices.   Read the article…………………………….

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.   Watch the video………………………….

Starting 1 July 2024, NSW Fair Trading will introduce updated regulations for strata, real estate and stock & station agents.  Read the article…………………………….

Insurance News held a half-day strata seminar in Sydney on Thursday, and more than 100 industry professionals attended.  Expert speakers provided insights on a variety of important issues. Here are five key findings from the event: CHU CEO Kimberley Jonsson presented interesting new data that challenged assumptions on strata insurance affordability.   Read the article…………………………….

Sky News host James Macpherson says the poor quality of strata apartment buildings is “killing owners”.  His comments come as a new report from the New South Wales government, which looked at 600 new or strata buildings, and found 53 per cent of them had serious or major defects within six years of being built.  […]

After their media investigation @LintonBesser and @NinahKopel from @ABCNews published an article High-profile strata company Netstrata caught charging excessive fees and taking kickbacks reporting on their business practices relating to insurance premiums, commissions, and brokerage, fire services, plumbing and building maintenance.   Read the article…………………………….

About three months after Jake* and his partner bought their apartment in Sydney, they faced an unexpected bill of more than $100,000. It was a special levy for major repairs needed to fix problems with the building’s waterproofing, but it was not flagged in the strata report or the previous year’s annual meeting minutes that […]

The Australian Consumers Insurance Lobby (ACIL) has published an in-depth report revealing the gaps in the strata insurance sector…..The report noted uncertainty among respondents about which regulatory body is responsible for overseeing the sector. This confusion underscores the pressing need for clearer governance and regulatory frameworks.   Read the article…………………………….

A man who avoided jail time after defrauding Australians out of $58,000 in an elaborate rental scam has been sacked from his job as a strata manager.  Last month, news.com.au reported that Sydney-based Scott Jeffries pleaded guilty to 22 counts of fraud after pretending to run rental inspections at properties he did not own, and […]

The message from Fire and Rescue NSW (FRNSW) regarding the rise of lithium-ion battery-related fires across NSW is ‘be alert, cautious and proactive’.  It’s important that strata managers, strata committees and strata residents understand the fire risks related with lithium-ion batteries and to be prepared if things go wrong.   Read the article…………………………….

Warren* was staggered to learn last year he had to contribute $80,000 for waterproofing and concrete spalling repairs to his apartment building in Sydney’s eastern suburbs.  It was an enormous shock, particularly because owners had to pay within six weeks for the work that included fixing the degrading concrete.   Read the article…………………………….

Allegations that a major NSW strata management firm has been charging excessive fees for insurance services without full disclosure of the arrangements have touched a nerve and triggered a torrent of criticism directed at practices within the sector.    Read the article…………………………….

The Australian College of Strata Lawyers says it supports the introduction of reforms recommended by consultant John Trowbridge in his review of practices in the sector.  The college, in response to ABC reporting on apartment owners paying excessive insurance fees through arrangements with Netstrata and associated entities, says it supports Mr Trowbridge’s reform proposals, including […]

One of the country’s most high-profile strata management firms has been using its wholly owned insurance arm to charge apartment owners insurance brokerage fees as high as three times the typical rate.  The company, Netstrata, has also been taking kickbacks from contractors and suppliers it hires using the strata funds of more than 1,000 buildings, […]

The Australian Competition and Consumer Commission says it is examining lobby group information that highlights poor conduct by some strata managers in arranging insurance.  The Australian Consumers Insurance Lobby (ACIL) has presented its concerns to the consumer commission and the Australian Securities and Investments Commission, giving examples that it says should be reviewed and asking […]

For hundreds of unit owners from Sydney’s doomed Mascot Towers, this year marks their fourth Christmas paying fees for homes too unsafe to live in.  In June 2019 residents of the towers were ordered to evacuate due to cracking in the walls.   Read the article………………………….

Climate change is driving insurance premiums higher – in strata properties premiums are set to rise nationally by 15-20 per cent from the start of FY24, according to Honan Insurance Group, driven by “claims costs inflation, rising building valuations, and insurers raising rates after periods of losses”.    Read the article……………………………….