Our resident manager has been arranging services for residents without disclosing that they are receiving a commission. Aren't they bound to disclose commissions?
Our resident manager has been arranging services for residents (e.g., aircon servicing, pest control) without disclosing that they are receiving a commission from the suppliers.
Is it within the Code of Conduct for the Caretaker Manager to be accepting these commissions without disclosure?
This has made us wonder whether the resident managers have also been getting any kickbacks from suppliers for materials and services to the Body Corporate they are sourcing on our behalf.
Be careful, these accusations have the capacity to be defamatory.
No matter what these things never smell right, but it always takes two to tango. A person cannot receive an undisclosed commission unless the supplier partakes in the same deception.
But, if the services are providers to owners there is probably no breach of the Code of Conduct as the Code applies just to services rendered under the persons engagement. The provision of services to lot owners is almost certainly never going to be covered by a caretaking agreement because that will ordinarily just deal with services provided to the body corporate as a whole.
As an aside, these accusations get thrown around a lot, and they do have the capacity to be defamatory. So, before anything further was said or done, I would be making I was 100% sure that I had hard evidence that these things were taking place.
Frank Higginson Hynes Legal E: frank.higginson@hyneslegal.com.au P: 07 3193 0500
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With more than 30 years’ experience in property, management rights and body corporate law, Frank is a beacon of knowledge and a renowned strata-industry expert. Known for his straight-shooting style and commercially driven advice, Frank cuts through the most challenging legal problems to deliver real-world solutions.
An active member of the strata community, Frank generously shares his time and experience to help educate the broader industry on all things strata law. He embraces his role as an industry leader and is committed to continued industry innovation and ensuring everyone in the strata sector has access to practical resources and solutions as they navigate through the strata maze.
He regularly presents to all industry segments and also speaks at Queensland Law Society events on strata law issues to other lawyers. Frank is a regular contributor to LookUpStrata.
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