New Building Manager Obligations Under NSW Strata Laws

From 27 October 2025, significant changes to NSW strata legislation came into effect, reshaping the legal responsibilities of building managers across the state. These reforms are designed to lift standards, improve transparency, and strengthen accountability. Outcomes that matter deeply in Sydney’s increasingly complex strata landscape.

For owners corporations and strata committees, understanding these new obligations is essential, particularly where building managers play a central role in day-to-day operations.

Who Is Considered a Building Manager?

Under the updated legislation, a building manager is someone formally appointed under a building manager agreement to manage the day-to-day operation, maintenance and physical oversight of common property.

It’s important to note that not all contractors are building managers. Trades such as cleaners, gardeners, electricians or plumbers are not captured by these obligations unless they are appointed under a formal building manager contract. This distinction is particularly relevant in Sydney schemes where multiple service providers are engaged at once.

New Statutory Duties for Building Managers

The legislation introduces statutory duties that apply to building managers regardless of what their individual contract says. These duties now carry legal weight.

Building managers must:

1. Act in the best interests of the owners corporation: They are required to prioritise the interests of the scheme, provided doing so does not breach other laws.

2. Exercise due care and diligence: If a building manager becomes aware, or reasonably should be aware, of maintenance, repair or safety issues affecting common property, they must promptly notify the strata committee and provide appropriate recommendations.

These obligations move building management firmly into a more accountable, professional framework.

Greater Transparency and Disclosure Requirements

Building managers must now disclose any financial benefits or conflicts of interest connected to their role. This includes commissions, referral fees, rebates or other benefits received from contractors or suppliers.

Disclosures must be made before or when the agreement is considered, giving owners corporations clearer insight into recommendations and costs.

Strata Manager vs Building Manager: Clearing the Confusion

In many strata schemes, the roles of the strata manager and the building manager are often misunderstood or blurred. While they work closely together, their responsibilities are distinct.

Strata managers act on behalf of the owners corporation in an administrative, financial and governance capacity, advising on legislation, managing funds, running meetings and supporting decision-making.

Building managers, on the other hand, focus on the operational side of the building: overseeing maintenance, contractors, safety and day-to-day functionality.

Under the new legislation, building managers are now held to a higher legal standard, with statutory duties that more closely resemble the accountability long associated with strata managers. This shift reinforces the importance of collaboration. When strata managers and building managers work together transparently and respectfully, aligned around the best interests of the owners corporation, everyone benefits. Ultimately, all parties are there to serve the greater good of the community, safer buildings, smoother operations and stronger strata outcomes.

Stronger Enforcement Through NCAT

The reforms also expand the powers of the NSW Civil and Administrative Tribunal. NCAT can now make orders to vary or terminate a building manager agreement if a manager has breached their statutory duties.

This gives Sydney owners corporations a clear avenue for action where obligations are not being met and reinforces the seriousness of these new legal standards.

Looking Ahead with Confidence

These reforms are more than a set of regulatory updates, they signal a clear shift toward more professional, transparent and accountable building management across NSW. With building managers now held to higher legal standards, owners corporations have a stronger framework to protect their assets and their communities.

For Sydney strata schemes, getting this right today means better governance, reduced risk, and buildings that are safer, stronger and more resilient for the long term. The key is understanding the changes early and ensuring everyone involved is working collaboratively and in the best interests of the owners corporation.

If your community needs guidance navigating these reforms or reviewing its strata and building management arrangements, speak to Compass Strata. With local expertise and a proactive approach, Compass Strata helps Sydney communities move forward with clarity and confidence.