ACT: Q&A New Strata Management Company Fees [+ Template Included]

The LookUpStrata Team

5 years ago

We have received some questions about setting up a new strata management company. These have been answered by Jan Browne, Bridge Strata.

Table of Contents:

QUESTION: Our Strata Manager’s contract is about to expire. Both owners in our duplex agree to self manage moving forward. How do we terminate the strata manager?

QUESTION: We want to change strata managers. What do we need to consider when voting on and implementing this change?

QUESTION: Is there a Strata Management course in ACT?

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Question: Our Strata Manager’s contract is about to expire. Both owners in our duplex agree to self manage moving forward. How do we terminate the strata manager?

I am an owner of a duplex property in Canberra. Our Strata Manager’s contract is about to expire. Both owners agree we’d like to self manage moving forward.

Can we email the current Strata Manager advising him that his services will not be required after the date of expiry.

We held a general meeting between the two owners in November 2021 and again today and are in agreement with this decision. Detailed minutes and decisions made at both meetings are documented and signed by all owners.

How many days of notice of termination is required to be given to the current Strata Manager?

Answer: Formalising this decision at your meeting is all that is required.

Yes if both owners agree to self manage they can. Formalising this at your meeting is all that is required.

The notice timeframe depends on the individual contract terms. Some agencies require a set notice period which is written into your contract. However in principle, yes if the contract has expired then you can just provide written notice, or a copy of the GM advising that you are moving to self-management.

The agent will arrange closure of your bank account and all necessary IP of the Owners Corporation to be handed to you following the agreed date.

Calli Fenwick Signature Strata E: calli@signaturestrata.com.au P: 02 6185 0347

This post appears in Strata News #544.

Question: We want to change strata managers. What do we need to consider when voting on and implementing this change?

I am chair of the body corporate for my complex in the ACT. We want to change strata managers and understand we first have to have a vote on this but I wanted to know firstly, is the vote to change required from all owners or just the executive committee?

Secondly, does it need to be a majority or a certain percentage?

Thirdly, what time frame is required to notify our strata managers that we wish to discontinue their services?

Answer: Although it is common for the EC to make the recommendation to appoint after interviewing various agencies, that recommendation is formally put to owners at the AGM or GM for appointment.

Section 50 of the Unit Titles (Management) Act 2011 requires an ordinary resolution to enter into a contract for management of a units plan; The requirement for an ordinary resolution dictates that the decision must be placed to all owners at a General Meeting, and is not a decision which can be made by the Executive Committee. Although it is common for the EC to make the recommendation to appoint after interviewing various agencies, that recommendation is formally put to owners at the AGM or GM for appointment.

An ordinary resolution requires a simple majority vote, unless a poll is called. Please refer below S3.15 of the UTMA for further detail.

3.15 Ordinary resolutions

For an owners corporation with more than 2 members, the requirement for passing an ordinary resolution at a general meeting is that
—
1. unless a poll is taken—the number of votes cast in favour of the resolution is greater than the number of votes cast against it; or
2. on a poll—the voting value of votes cast in favour of the resolution is greater than the voting value of the votes cast against it.

In order to be valid, the notice of General Meeting (requiring only ordinary or special resolutions) must be issued so that the notice would reasonably be expected to be received at least 14 days before the date fixed for the meeting. Your current strata manager should assist you with convening the meeting, noting that additional charges may apply.

Discontinuation of your contract will vary depending on the termination clause contained within your individual contract and the length of time remaining on the contract. Without these details, it is impossible to advise of any relevant timeframes as they will be specific to each individual circumstance. It is always recommended an EC review their contract and notice periods as one of the first things they do when approaching the market.

Nina Cannell Signature Strata E: nina@signaturestrata.com.au P: 02 6185 0347

This post appears in Strata News #519.

Question: Is there a Strata Management course in ACT?

Is there a Strata Management course in ACT?

I am a commercial Property Manager in the ACT and I manage one (1) Units Plan – Office/commercial property. I would like to learn more specifically about Strata and Units Plan etc. How can I do this?

Answer: SCA (ACT) offer a wide variety of resources for members, including training, accreditation and networking events

SCA (ACT) is the peak professional association for strata management in the ACT. They offer a wide variety of resources for members, including training, accreditation and networking events.

Further information regarding SCA (ACT) can be found at: Strata Community Association (ACT)

Australian Capital Territory Body Corporate and Community Title Management industry and provides a forum for improved standards and education in the industry

Of particular benefit would be A100 course, details of which can be found on the SCA website.

Nina Cannell Signature Strata E: nina@signaturestrata.com.au P: 02 6185 0347

This post appears in Strata News #479.