NSW legislation update: Strata management agreements

The right strata manager can make a world of difference to your strata scheme, but owners corporations don’t always proactively revisit their strata management agreements to ensure they reflects their current needs.

Strata management agreements

To encourage committees to review and renew their agreements, the NSW government has introduced new legislation that changes the way in which strata managers are appointed and the length of their term.

As part of the new requirements many existing agreements will expire sooner than expected, and may cause some strata schemes to be without a strata manager.


To ensure you continue to receive valuable strata management services, we advise you to contact your strata manager immediately to extend or renew your contract before the expiry date.

The renewal of your agreement will guarantee your scheme is backed by Australia’s leading strata management service, PICA Group. With more than 50 years of industry experience and the support of a local network, your property will be managed to the highest standards.

We will continue to work closely with government, industry, insurance and legal partners to keep pace with the changes, to ensure you benefit from a smooth transition into a new era of strata legislation.

Here are some of the key legislation changes to note:

  • For rollover strata management agreements that have expired, the original term of appointment will end on 30 May 2017.
  • Strata management agreements that commenced before 30 November 2016 will end on the expiry date stated in the agreement, but cannot be beyond 3 years after the start date.
  • Following appointment of the selected managing agent at the first annual general meeting (AGM), strata management agreements will be limited to a term of 12 months and up to 3 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 3 months (but not for any period that extends beyond the date of the next annual general meeting).
  • For 3-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 3 months.
  • The developer of a strata scheme, or a person connected with the developer, cannot be appointed as the strata managing agent for the scheme until 10 years after the registration of the strata plan.


Click here for previous communications on the NSW legislation changes.