Question: Our strata management company has changed hands, and we are now charged for services that were previously included. Does our existing agreement still apply?
Our strata managing agent recently changed ownership. Although we were told that any changes to our service would be transparent, we are now being charged for additional services not charged before the ownership change.
Does our strata management agreement remain valid and current after the company buy out?
Answer: Yes. The existing agreement remains valid until the contract term expires.
The simple answer is yes. The terms of the existing agreement, which the incoming company has purchased, remain valid until the contract expires.
Notwithstanding this, the reference to “now being charged for additional services not charged before the ownership change” could mean several things. The previous agent who had carriage of your owners’ corporation may have overlooked, or failed to exercise, all rights to charge additional services under the terms of the agreement.
The only way to establish whether the charges are erroneous would be to:
- obtain a copy of the current agreement,
- request a summary of the year to date additional charges, and
- cross reference the charges against the fee schedules in the agreement.
That said, managing agency agreements can be difficult to understand as they have multiple fee schedules and legalistic terminology. A forensic review of the owners corporation’s financials and the managing agency agreement by a suitably qualified professional may assist in determining whether any additional charges are consistent with the agreed terms.
This post appears in the July 2026 edition of The NSW Strata Magazine.
Megan Parkins
Tender Advisory
E: megan@tenderadvisory.com.au
P: 0435 893 670
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