NSW: Can a building manager serve on the strata committee?

Question: Can a building manager be on the committee or is this a conflict of interest?

Can a building manager/caretaker be on the strata committee? The legislation says no to managers and agents who lease short or long-term rentals “unless they are an owner”. Our building manager owners 50% of the lots he manages and is a committee member. This seems like a conflict of interest.

Answer: If your building manager/real estate leasing agent owns a lot in your scheme they are eligible for election to the strata committee.

If your building manager/real estate leasing agent owns a lot in your scheme they are not ineligible for election to the strata committee as per the section extracted below (emphasis added):

32 Persons who are not eligible to be appointed or elected to strata committee

The following persons are not eligible for appointment or election as a member of a strata committee, unless the person owns a lot in the strata scheme—
1. the building manager for the strata scheme,
2. a real estate agent carrying out functions in connection with the leasing of a lot in the strata scheme,
3. a person who is connected with the original owner of the strata scheme or the building manager for the scheme, unless the person discloses that connection at the meeting at which the election is held and before the election is held or before the person is appointed as a member,
4. any other person prescribed by the regulations for the purposes of this section.

An owner of a lot in a strata scheme who was an unfinancial owner at the date notice was given of the meeting at which the election of a strata committee is to be held and who did not pay the amounts owing by the owner before the meeting is not eligible for appointment or election to the strata committee.

A person who becomes ineligible for appointment or election to a strata committee after being appointed or elected to the strata committee must disclose that fact to the secretary or chairperson of the owners corporation as soon as possible after becoming aware of that fact.

A disclosure by a person under this section, other than a disclosure that is made at a meeting of an owners corporation or strata committee, is to be made by written notice given to the secretary or chairperson.

If the office of a member is vacated under section 35(1)(e), the person is not eligible for appointment or election as a member for the period of 12 months commencing on the day the resolution is passed.