Question: Can the owners corporation request their strata management company provide them with a particular strata manager?
Answer: Your contract is with the strata management agency, not an individual strata manager.
Your contract is with the strata management agency, not an individual strata manager. Obviously, your strata management company will want foster a positive relationship so, an open conversation about which manager you want should help. Realistically however, something like a key person clause is not valid as it is not enforceable under the legislation.
You can request a particular strata manager, but ultimately staff and resource decisions are at the discretion of the strata management company.
This post appears in the March 2025 edition of The NSW Strata Magazine.
Megan Parkins
Tender Advisory
E: megan@tenderadvisory.com.au
P: 0435 893 670
Answer: Yes, the general meeting requires 7 days notice and the proposed strata management agency agreement must be tabled at the meeting or circulated with the notice
Yes, the general meeting requires 7 days notice (together with 7 business days postage if notices are distributed via Australia Post). Further, the proposed strata management agency agreement (indicating fees and charges) must be tabled at the meeting (or circulated with the notice)
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I am curious how an owner fills out a proxy form or how one e-vote if the agreement is only tabled at the meeting. It is just nonsense to vote without having the opportunity to see the critical document (the agreement).
This idea that it is OK if only those present get all the info is just rubbish and people need to stand down from that disenfranchising idea.
Is it too big an ask that people be informed on what they are being asked to vote on?
“The test is to ask whether the information, if provided to an ordinary shareholder who scanned or read the document quickly, not as a lawyer, but as an ordinary person in commerce or as an ordinary investor, would fully and fairly inform and instruct the shareholder about the matter on which he or she would have to vote” Devereaux Holdings Pty Ltd v Pelsart Resources NL (No 2) (1985) 9 ACLR 956.
Without seeing the actual agreement the owner knows very little.
It is not OK to only table it at the meeting and everyone else can just vote blindly.
Question: Is it a requirement under NSW strata legislation to have a signed agreement with a strata manager?
We have been on a month by month arrangement for the past few years. We’ve received an email indicating that we needed to sign a contract as a requirement of NSW strata legislation.
Answer: This is correct
This is correct – see Section 49 of the Strata Schemes Management Act 2015 (NSW). This is also a requirement under the Property Stock and Business Agents Act, in the absence of which, the strata manager may be prevented from retaining their commissions.
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Section 49 does not compel the OC to have a signed agreement. In fact it says the “strata scheme may appoint’…..”.
The ‘may’ means it is optional.
49 Appointment of strata managing agents
(1) An owners corporation for a strata scheme may appoint a person who is the holder of a strata managing agent’s licence under the Property and Stock Agents Act 2002 to be the strata managing agent of the scheme.
I am really surprised by the answer because if we do go the PSA Act (s 55) we find all it really says is the agent has no entitlement to his commission, expenses, for services in the absence of a signed agreement.
Question: Is it a requirement under NSW strata legislation to have a signed agreement with a strata manager?
No it is not a requirement, it is an option.
If the OC is happy to pay an agent on an informal, month to month, ‘agreement’ then there is nothing stopping that.
In reading many Strata Service Management Agreements (The Contract), I noticed most have a clause that says “The Agent is not liable to the Owner, including without limitation for breach by the Agent of this Agreement, (except as otherwise required by law..”
It all sounds like that can do whatever they like and get away with it.
In reading this, I cannot think of anyway the Agent can “breach” the contract.
Are there cases where Strata Management Agency breach the contract?
Hi Olivia
Shane Williamson from Williamson Lawyers Pty Ltd has responded to your comment in the article above.
can you please me know how many percentage of owner corporation need to vote a down of total number of lot owner ?
example if the total strata Lot owner 17 then how many lot owner need to sign the termination notice form to change the strata company?
i am looking forward to hearing from you.
In many cases where the OC wants to change Strata Managers, the easiest is just to let the agreement lapse. That requires patience on the part of the OC but all management contracts in NSW are a maximum of 3 years.
At the end of the management agreement, if the OC does not renew the management contract, the strata manager is let go. The SM can’t use subterfuge because appointment of a SM requires a General Meeting to extend or appoint a Strata Manager,and the committee determines the agenda for the General Meeting.
Sure you have to bear with the idiot SM but it saves a lot of discussions and possibly a payout to the outgoing SM if they want to play hard ball
We recently changed managers, It took a lot of paperwork to ensure that we followed the correct process. The existing company demanded to “approve” or veto the minutes before we could make the change. They had a right to see the minutes and fortunately we had done the homework that meant the minutes weren’t challenged.
In choosing a new SM, we invited three quotes, including from the existing company. They came to separate interviews with the Committee so that they could understand our complex and vice versa. We asked them to walk through the complex and tell us what thought & any recommendations they might have on first glance, and to ask us any questions. In my opinion this was the most enlightening part of the interview. Our decision was not based solely on price – it forced us to think about what we needed,
In my opinion, one of the biggest changes I have seen in 25 years of different strata places (city and regional) is that many companies no longer have staff with strong technical knowledge of buildings. Unfortunately it shows, even in newer complexes. This was a priority for us.