Real Estate Services Council v Alliance Strata Management Ltd

The Real Estate Services Council (the Council) brought proceedings against Alliance Strata Management Ltd and others (the respondents) in the Supreme Court of New South Wales. The dispute concerned the Council's power to impose conditions on the registration of strata managing agents. The Council sought to impose conditions requiring agents to hold professional indemnity insurance and to have a trust account audited annually. The respondents challenged the validity of these conditions.

The primary legal issue before the Court of Appeal was whether the Council had the statutory authority to impose such conditions on the registration of strata managing agents under the relevant legislation. Specifically, the court had to determine the scope of the Council's powers in relation to regulating the conduct and professional standards of strata management businesses.

The Court of Appeal held that the Council did not possess the power to impose the impugned conditions. The court reasoned that the legislation conferred specific powers on the Council, and the imposition of these conditions went beyond the scope of those powers. The court emphasised that any regulatory power must be clearly and unambiguously granted by statute, and in the absence of such express power, the Council could not unilaterally introduce such requirements. The court found that the conditions sought to be imposed were not authorised by the enabling legislation.

Consequently, the Court of Appeal dismissed the Council's appeal and affirmed the decision of the lower court, finding that the conditions were invalid.