If you’re buying an apartment in NSW, one of the less obvious due diligence steps is checking whether the building’s strata managing agent is properly licensed. It’s surprisingly easy to do, and it can reveal important information about who’s actually managing your potential home.
Do Strata Managers Need a Licence?
In NSW, strata managing agents are required to hold a strata managing agent licence issued under the Property and Stock Agents Act 2002 (NSW). This is administered by NSW Fair Trading.
There are two licence classes — class 1 and class 2. Only class 1 licence holders can be nominated as the licensee in charge of a business and authorise trust account withdrawals. To qualify, applicants must meet education and work experience requirements, pass a “fit and proper person” assessment (including financial and police checks), and complete continuing professional development each year.
This means that the person or company managing your building’s finances, maintenance, and compliance is subject to real regulatory oversight — the same framework that governs real estate agents and stock agents in NSW.
How to Check a Licence
NSW Fair Trading maintains a public licence register that anyone can search online:
- Go to the NSW Fair Trading property services licence check at fairtrading.nsw.gov.au
- Search by the individual’s or company’s name
- You’ll see their licence number, type, status (current or cancelled), and any conditions
It takes about 30 seconds. You’re looking for a licence that is current and of the right type (strata managing agent).
What to Look For
Green flags:
- Current, unconditional licence
- Licence held for many years (indicates stability)
- Company licence plus individually licensed staff
Red flags:
- No licence found at all — this is a serious concern
- Licence cancelled or suspended
- Licence with conditions or restrictions attached
- Recently issued licence for a company claiming years of experience
Why This Matters for Buyers
A licensed strata manager is subject to regulatory oversight. If something goes wrong — mismanagement of funds, failure to maintain records, breach of duty — there’s a complaints process through NSW Fair Trading and potentially the NSW Civil and Administrative Tribunal (NCAT).
An unlicensed operator has none of these safeguards. You’d have limited recourse if things went wrong.
Beyond the legal protections, checking the licence is also a quick credibility test. If the strata manager listed on a building’s records doesn’t show up in the licence register, that’s worth investigating before you commit to buying.
The Bigger Picture
Strata manager quality varies enormously across NSW. Some manage hundreds of schemes professionally; others struggle with basic compliance. The licence check is just one data point, but it’s a free, fast one that too few buyers bother with.
If you’re researching a building’s strata situation, tools like StrataChecks can help you find which manager is responsible for a given strata plan and explore their portfolio across NSW.
This post is part of a series on practical strata due diligence for apartment buyers in NSW.