Ask three people in a NSW strata scheme who is responsible for a problem, and you will often get three answers. Is it the strata manager? The committee? The owners? The confusion is understandable, because the roles overlap in everyday life even though the law keeps them distinct.
Getting this right matters. When a committee assumes the strata manager will handle something, and the strata manager assumes the committee will decide it, things fall through the gap. This guide sets out who does what, where the line sits, and how delegation works under the Strata Schemes Management Act 2015.
As always, the framework here is general. The precise functions a managing agent performs are set by your management agreement, and the rules can change, so confirm specifics with NSW Fair Trading.
The owners corporation: where authority lives
Every strata scheme has an owners corporation, made up of all the lot owners together. This is the body that owns the common property, holds the funds, and carries the legal responsibilities for running the scheme. Everything else flows from here.
The owners corporation cannot meet about every small decision, so it elects a committee to act on its behalf between general meetings. Authority starts with the owners, is exercised through the committee, and is administered with help from a managing agent. Keep that order in mind and most of the confusion disappears.
The strata committee: the decision-makers
The committee is a group of lot owners elected at the annual general meeting to make day-to-day decisions for the owners corporation. They are the decision-makers. They direct maintenance, oversee the budget, set priorities, and carry the duties we cover in a strata committee's legal duties.
Crucially, the committee is made up of volunteers who are also owners. They have a personal stake in the scheme, and they remain accountable to the rest of the owners. Engaging a strata manager does not change that. The committee still decides, and the duties still rest with them.
The strata managing agent: the administrator
A strata managing agent is a licensed professional the owners corporation engages to administer the scheme. The agent is not an owner and is not on the committee. They are a service provider, working to a management agreement and to the committee's instructions.
What does that administration usually involve? Often it is the practical running of the scheme: issuing levy notices, paying approved invoices, keeping the accounts and records, organising meetings and writing up minutes, helping with insurance renewals, and coordinating repairs to common property. The agent makes the machine run. The committee decides where the machine goes.
Where the line sits
Here is the simplest way to hold the distinction. The strata manager administers. The committee decides. The owners corporation is responsible.
So when a quote comes in for a roof repair, the agent might gather the quotes and present them. The committee decides which to accept, within its spending authority. The agent then arranges the work and pays the invoice. The decision was the committee's; the administration was the agent's. If the cost is large or unusual, the decision may need to go to the owners at a general meeting, which is part of the rhythm we describe in our NSW strata AGM guide.
How delegation works
An owners corporation can delegate certain of its functions to a strata managing agent. That is the point of engaging one. But delegation has limits. The owners corporation cannot hand over its entire responsibility, and some matters must still be decided by the committee or by the owners themselves.
The scope of any delegation is written into the management agreement. That document is worth reading carefully, because it defines exactly what the agent is authorised to do on the scheme's behalf and what stays with the committee. If a committee does not know what it has delegated, it cannot oversee it properly. For the precise rules on what can and cannot be delegated, confirm with NSW Fair Trading.
Why the split matters
When the line is clear, a scheme runs well. The agent takes the administrative load off volunteers who have day jobs, and the committee keeps control of the decisions that affect their homes and their money. When the line is blurred, accountability gets lost and small jobs stall.
The single biggest mistake is a committee assuming the agent is responsible for everything because they are paid. They are not. The duties stay with the owners and their elected committee. The agent helps them carry the load, not carry the responsibility. For the role of the committee in full, see our strata committee member guide.
Your next step
If you sit on a committee, knowing exactly where your responsibilities end and your agent's begin is the foundation of running the scheme well. Archer Institute's Strata Members CPD course explains the roles, the duties under the Strata Schemes Management Act 2015, and how delegation works in practice. It is online, self-paced, and written for the volunteers who run NSW schemes.
