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Management Corporation to be real estate broker? |
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Friday, 26 October 2007 |
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Can the Management Corporation (MC) of a condominium become a co-broker in brokering the sale or rental of a strata unit in that development? This unusual proposal shall be tabled as a bylaw at the Richmond Park MC's AGM tomorrow . The most controversial part of this proposed bylaw is allowing strata owners to receive a 20 per cent discount off their maintenance fee up to a maximum of 12 months, if they appoint the MC as their co-broker. Many of the strata owners are thrilled with this idea. However, experts in Building Maintenance & Strata Management Act, the law that governed strata developments, advised that such bylaw is ultra-vires. Even if passed, it can still be challenged as the power of the MC is in the control and administration of the common property.
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