NSW: Is a strata management agreement valid without a signed contract?

Question: Our AGM minutes stated that as there were no nominations for the renewal of the MAA, the Managing Agent took on the role. No agreement has been signed. Is there a valid contract in place?

Our Management Agreement was for 12 months expiring in mid-February 2022.

In early December 2021 an AGM was held. There was no Managing Agent Agreement attached to the Agenda.

Minutes of the December, 2021 stated:

1. The Managing Agent Agreement had been renewed for 3 years;
2. As there were no nominations for the Strata Committee the Managing Agent took on the role.

I know for certain that I and one other owner – 5 owners in total with equal entitlements – have never received a copy of the alleged renewed 3-year contract.

Given these facts,

1. is there a valid contract in place?
2. how was the Managing Agent legally authorised to effect the role of the Strata Committee?

Answer: I would suggest you ask for a copy of the signed agreement to be sent to you and review the agreement to make sure it has been properly signed.

To enter into a strata contract, you need to have the following:

1. An ordinary resolution passed at a General Meeting

Was an ordinary resolution passed at the meeting? If yes, please see 2. If no, then the agreement is invalid

2. A strata Managers Agency agreement tabled at the meeting (circulating the proposed agreement with the agenda is best practice and considered ‘normal’)

Was the agreement tabled at the meeting? If no, the agreement is possibly invalid.

3. A signed agreement

Did two owners sign the agreement? Did the strata manager sign the agreement?

I would suggest you ask for a copy of the signed agreement to be sent to you and review the agreement to make sure it has been properly signed. Normally the strata manager will email you a copy of the agreement if you ask for a copy however if they won’t send it to you, you can do a search of the books and records and see it.

This post appears in the June 2022 edition of The NSW Strata Magazine.

Rod Smith
The Strata Collective
E: rsmith@thestratacollective.com.au
P: 02 9879 3547