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Topic
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The renewable company I represent wishes to present solar solutions- with batteries to eventually follow – to apartment buildings 4-5 stories and below in height. From a legal and/or ethical perspective is it okay to offer strata managers an annual financial incentive to introduce us to those buildings they represent?
If our company was going to pay those commissions would that make it any different.
I’m just wondering if this would already be covered by their existing relationship and the financial benefit they already gain.
Would it be considered double dipping and would it be deemed to be included in their management mandate to introduce our solution to their clients?
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The way this is dealt with is strata law is complicated but the principles of transparency are quite straight forward.
Section 57 of the Act says strata managers may not receive gifts or commissions for services provided unless that is in their contract or approved by the owners corporation (in most cases, the strata committee).
Section 60 of the Act says Strata Managers must declare any commissions they receive at the schemes’s AGM and imediately inform the strata committee of any commissions that differ from what was declared at the last AGM, as well as any changes that are likely to occur – i.e. offers that have been made to them that they are likely to accept.
Failure to do so can lead to fines of up to $2200 and the Tribunal can order the SM to pay the commission received to the owners corp. Receipt of commissions for organising compulsory strata insurances are commonplace but frequently resented by the owners corps.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
Jimmy has addressed the legal side.
But I think you need to rethink your business model.
Commissions are usually paid when a sale is made.
Your model pays a commission for an introduction. There is nothing to stop the SM from “introducing “ you to hundreds of properties but you never or rarely make a sale.
In my opinion your business plan is likely to fail by the drain on the commissions paid.Remember any commissions paid needs to be perceived by the receiver as justifiable for the effort expended. A $10 commission won’t attract any takers.
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