Compulsory Strata Management in New South Wales (NSW)

Compulsory strata management refers to an Order from NCAT requiring the appointment of an independent professional Strata Manager to oversee and take responsibility for the administrative and operational aspects of a Scheme.

Depending on the NCAT Order, It may partly or wholly remove the powers and functions of a Scheme and entrusts them to an appointed Compulsory Strata Manager, ensuring proper maintenance and protection of owners’ interests.

Orders describing the Services of a Compulsory Strata Managing Agent:

Referring to Section 237 of the NSW Strata Schemes Management Act, NCAT can order the Compulsory Strata Manager to exercise specific functions:

(1) Order appointing or requiring the appointment of strata managing agent to exercise functions of owners corporation The Tribunal may, on its own motion or on application, make an order appointing a person as a strata managing agent or requiring an owners corporation to appoint a person as a strata managing agent--

(a) to exercise all the functions of an owners corporation, or

(b) to exercise specified functions of an owners corporation, or

(c) to exercise all the functions other than specified functions of an owners corporation.

(2) Order may confer other functions on strata managing agent The Tribunal may also, when making an order under this section, order that the strata managing agent is to have and may exercise--

(a) all the functions of the chairperson, secretary, treasurer or strata committee of the owners corporation, or

(b) specified functions of the chairperson, secretary, treasurer or strata committee of the owners corporation, or

(c) all the functions of the chairperson, secretary, treasurer or strata committee of the owners corporation other than specified functions.

Appointment of a Compulsory Strata Manager:

Categories of people who can apply to NCAT for the appointment of compulsory management include lot owners.

NCAT has the power to appoint a Compulsory Strata Manager on its own motion.

When Can NCAT Appoint a Compulsory Strata Manager?

When a strata scheme is “not functioning” or “not functioning satisfactorily,” NCAT may intervene and appoint a Compulsory Strata Manager.

Obtaining an Order for Compulsory Strata Management:

The process varies case by case, but if you believe there is cause for the appointment of a Compulsory Strata Manager to your Scheme, you can apply directly to NCAT. This can be a complex process and it strongly suggested that Legal Counsel specializing in NSW Strata Law be engaged to assist with that application process.

NCAT will review the issue and appoint a dedicated strata manager if necessary.

The first step is to consult legal resources or seek professional advice specific to your situation.