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NSW Fair Trading Revokes Strata Licences Due to Insurance Failures and Misconduct

Result Strata Management and General Manager Face Permanent Licence Cancellations

NSW Fair Trading Revokes Strata Licences Due to Insurance Failures and Misconduct?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

In May 2025, NSW Fair Trading took decisive action against Result Strata Management Pty Ltd and its General Manager, Michael Lee, by permanently revoking their licences to operate in the state's strata management sector.
This move followed an investigation that uncovered multiple breaches of the Property and Stock Agents Act 2002, highlighting significant misconduct within the company.

The investigation revealed several violations, including the failure to manage conflicts of interest, improper conduct related to meeting instructions, billing for undelivered services, neglecting fire safety obligations, and insufficient insurance arrangements for managed properties. Additionally, Michael Lee was found to have obstructed authorities during a site visit, further compounding the severity of the infractions.

Fair Trading Commissioner Natasha Mann emphasized the agency's commitment to reinforcing compliance across the strata industry, stating that such actions are necessary to maintain the integrity and trustworthiness of the sector. The revocation of licences serves as a stern warning to other strata management firms about the importance of adhering to legal and ethical standards.

In a related development, the NSW government is considering reforms that could reshape financial arrangements in strata insurance. A proposed ban on commissions paid to strata managers by insurers has sparked debate within the industry. Consumer advocacy groups argue that commission-based models undermine transparency and inflate premiums, while some strata management firms express concern about potential operational consequences.

For property owners, these developments underscore the necessity of due diligence when selecting strata management companies. Ensuring that management firms comply with legal requirements and maintain transparent practices is crucial in safeguarding the interests of property owners and preserving the integrity of the strata industry.

Published:Saturday, 6th Dec 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

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Term Life Insurance:
A type of life insurance policy that provides coverage for a specified period, such as 10 or 20 years.