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A general manager of an NSW strata company has been banned from operating in the sector after he permitted his company to neglect its legal obligations and impede a subsequent Fair Trading investigation.
NSW Fair Trading has cancelled the licences of Result Strata Management Pty Ltd and its general manager, Michael Lee, and permanently disqualified both from operating in the state’s strata sector.
An investigation undertaken by the regulator’s Strata and Property Services Taskforce determined that Result Strata operated in a number of ways that did not comply with the legal obligations and expectations of a strata business, such as:
- Consistently failing to appropriately disclose conflicts of interest.
- Charging fees for services that were not rendered.
- Failing to ensure properties under management complied with critical fire and safety obligations.
- Consistently breaching the rules of conduct that applied to it under the Property and Stock Agents Act 2002 (Act).
- Failing to provide information to lot owners when required.
- Acting contrary to instructions given at general meetings.
- Failing to ensure a property under management had adequate insurance coverage when the responsibility had been delegated to a strata manager.
In addition to Lee having been found to have permitted the company to act in the ways above, he was also found to have obstructed Fair Trading officers who were executing a search warrant.
The cancellation of Lee and Result Strata’s licences took effect on 9 May 2025 and follows earlier suspensions of the licences in January and March of this year.
Although Lee and Result Strata are now disqualified from holding a licence or being involved in the direction, management or conduct of a licensed business, NSW Fair Trading noted that they can apply for an internal review of the decision to be conducted by the regulator, or externally by the state’s Civil and Administrative Tribunal.
Acting Strata and Property Services Commissioner, Angus Abadee, said the recent outcome reflected the importance of strong regulatory oversight in protecting people who live and invest in strata-managed properties.
“NSW Fair Trading will continue to work closely with owners and residents of strata properties to ensure management of their schemes is transparent, accountable, and in line with community expectations,” Abadee concluded.
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