Each week, as a counter measure to the out-of-control pace of strata law reform nationally, I consider a strata law, which has become conventional wisdom, and whether it should be scrapped to make strata management better.
If insurance commissions are to be banned (as they should be), we should remove s 60. Commissions and benefits from related party transaction income resulting from vertical integration is properly dealt with by the common law and the Crimes Act 1900 (NSW) (s 249B - 249D).
The current disclosure provisions have not worked. They legitimise transactions that are, or should be, unlawful. The codified nature of present disclosure laws limits consumers’ rights. They are less than those afforded under the common law of fiduciaries.
Repealing the three quote rule for insurance renewal simplifies strata management business.
So what do you think? Scrap it, or save it?
Whatever you think, for now at least, disclosure is necessary. You can buy our strata Conflicts Disclosure toolkit here.
Michael Teys advises strata management businesses on improving profitability through professionalisation and streamlined operating systems.
He has more than 30 years’ experience as a strata lawyer and academic and has owned 11 strata management agencies throughout Australia. He has a Master of Philosophy (Built Environment) and Bachelor of Laws. He lectures and writes widely about strata management issues in Australia and internationally.
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