Is a strata manager's contract valid if signed by only one owner?

A contract for strata management generally has two positions in which ‘authorised strata company representatives’ sign. Generally, this is signed by two members of the council of owners. If only one lot owner signs a contract, it does not necessarily render the contract invalid. This would come down to contract law and whether the person who signed had the ‘authority’ to do so.

A lot owner may have been authorised to appoint a strata manager by a vote in a meeting or outside of a meeting, so the question is whether the owner who signed the agreement has the authority to do so. A change or appointment of a strata manager is generally conducted by a vote of the council of owners, unless the scheme has registered by-laws that note how the scheme must terminate or appoint a new strata manager.

For three lot schemes, all lots are considered the strata council. Therefore, all three owners can meet and vote. Alternatively, a notice of meeting can be sent to all owners. A vote is taken at that meeting, and the scheme proceeds with the majority vote.

For an owner to be able to sign a contract to engage a strata manager, there needs to be a vote by owners that gives that lot owner the authority. If the strata company did not authorise the lot owner to execute a contract, you should speak to the strata manager about the validity of the appointment.