Strata management agreements
The right strata manager can make a world of difference to your strata property, but owners corporations don’t always proactively revisit their strata management agreements to ensure they reflect their current needs.
To encourage committees to review and renew their agreements, the NSW has legislation that manages the way strata managers are appointed and the length of their term.
To ensure you continue to receive valuable strata management services, we suggest contacting your strata manager to check your contract’s expiry date.
The legislation that governs management agreements is the Strata Schemes Management Act 2015. Below we have listed some of the key legislative requirements that should be met in regards to managing and maintaining management agreements with your strata manager.
Key things to note
- Strata management agreements will end on the expiry date stated in the agreement.
- Following the appointment of the selected manager at the first annual general meeting (AGM), strata management agreement will be limited to a term of 12 months and up to three years thereafter.
- If a strata manager is appointed by the developer before the first AGM, then that appointment ends at that meeting. At the first AGM, a new agreement will need to be approved.
- The strata committee can extend the period of an appointment for successive periods of up to three months (but not for any period that extends beyond the date of the next AGM).
- For three year agreements where a strata committee decides not to reappoint an agent and fails to provide written notice, the agent will be able to extend the appointment for a maximum of three months.
- The developer of a strata property, or a person connected with the developer, cannot be appointed as the strata managing agent for the scheme until ten years after the registration of the strata plan.