Page 3014 - Week 08 - Thursday, 7 August 2008
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It is intended that a new category of licence be created under the Agents Act. At this stage it is like to be referred to as the owners corporation manager’s licence.
It is intended that those persons who provide owners corporation management services but do not hold an owners corporation manager’s licence will be grandfathered in this legislation. This means that those persons would not be required to do anything until the next financial year when they will need to apply for a licence. Persons who enter this market after the commencement of the legislation will need to apply for the owners corporation manager’s licence to manage an owners corporation.
Importantly, a person who holds an owners corporation manager’s licence must comply with the code of conduct included in this legislation. It is intended that the code of conduct will cover such things as:
• an obligation on the manager to have a good working knowledge and understanding of the act;
• to act honestly, fairly and professionally and exercise reasonable skill, care and diligence in performing their functions;
• to act in the best interests of the owners corporation;
• to keep the owners corporation informed of any significant development or issue about an activity performed for the owners corporation;
• ensure employees comply with the legislation and the code;
• not accept an engagement for another owners corporation if there is a potential or actual conflict of interest between these roles; and
• not engage in fraudulent, misleading conduct or unconscionable conduct.
Mandatory compliance with the code of conduct will better regulate the actions of the owners corporation manager, provide better protection for unit owners and reduce the likelihood of disputation between unit owners and owners corporation managers and between owners corporations and their managers.
A new role called the communications officer has been created. An owners corporation in a units plan with at least seven units can appoint a communications officer. This role will assist the owners corporation by improving communication in the unit complex so that conflict and disputes can be avoided, minimised or resolved. It is not intended that this role will form part of the dispute resolution process, but it is intended to focus more on the importance of quality communication within the unit complex. This will have a beneficial outcome for all stakeholders.
New provisions have been introduced in respect of sinking funds. An owners corporation of a units plan with at least four units must establish and maintain a sinking fund. Moneys can be transferred into the sinking fund from the administrative fund or the special purpose fund, but, differently from the current legislation, cannot be transferred from the general fund.
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