Understanding NSW’s 2020 Strata Management reforms
On 23 March 2020, Fair Trading New South Wales introduced new real estate regulations that affect Strata Management in NSW. If you own a Strata Property and hire a Strata Management, here are the changes you need to know about and what you need to do.
What are the changes?
You can read full details of the recent law reforms here. The new rules affecting Strata Managers, and what that means for property owners and developers, in Newcastle and across NSW are as follows.
Licence changes
The old licensing system for Strata Managers has been restructured to three levels. In order of qualification and experience, these are:
- Certificate of Registration as an Assistant Agent
- Class 2 Licence as a Licensed Agent
- Class 1 Licence as a Licensed Agent or Licensee in Charge of a Business
Licence duration
- Certificates of Registration are issued for 4 years, with no extensions or renewals
- Class 1 and Class 2 Licenses can be chosen for 1, 3 or 5 years, based on what suits your business needs and price range
Continuing professional development (CPD)
Strata Managers, Assistants and Licensees also need to show that they have completed at least three units of continuing professional development (CPD) each year. These must be completed through a Certificate IV training provider.
The CPD requirements are:
- Class 2 Licence – 6 hours annually (3 hours compulsory topics + 3 hours elective topics)
- Class 1 Licence – 9 hours annually (3 hours compulsory topics + 3 hours elective topics + 3 hours business management)
Strata Managers need to keep records to show that they have completed CPD. If they’re not able to show records, they may risk losing their Licence which may have ramifications for your property.
How does this affect me?
Most Strata Managers, Assistants and Licensees who already held a Licence or Certificate of Registration will automatically hold the new equivalent following the reforms. If they don’t already hold a qualification, they will need to apply at the appropriate level.
Assistant Strata Managers
If someone is new to the Strata Management industry, or if they worked as an Assistant Agent but never registered, they will need to apply for a Certificate of Registration as an Assistant Agent.
Unlicensed Strata Managers
If someone operated as a Strata Manager but didn’t hold a Licence, they will no longer be able to refer to themself in this way unless you complete the required qualifications. They first need to apply for a Certificate of Registration as an Assistant Strata Management Agent.
Strata Managers
Most existing Strata Managers will automatically transition to a Class 2 Licence under the new rules, unless they’re already qualified for a Class 1 Licence. Upgrading to Class 1 involves higher fees and additional CPD training.
Licensees in Charge
If someone was the Licensee in Charge for a Corporate Licence Holder, they will now automatically hold a Class 1 Licence as a Licensed Agent or Licensee in Charge of a Business. There can be more than one Licensee in Charge at the same Strata Management company.
Sole Traders
If someone has a licence to run their own Strata Management company in NSW, they need to contact Fair Trading NSW to request a Class 1 Licence.
Qualified Strata Managers in NSW
Lake Group Strata has helped owners and developers to manage the complex day to day issues of Strata Management for more than 25 years. We have experts in all key areas of Strata Management.
To find out more about our services across Lake Macquarie, Newcastle, Hunter Region and Myall Lakes, call our Charlestown office on 02 4942 3305 or our Maitland office on 02 4933 6466.
