Question: What is the process for varying a strata management agency agreement? Is there anything within the agreement that cannot be varied at the request of the owners corporation?
Answer: A strata management agency agreement can be amended like any agreement.
Yes. Like any other agreement, a strata management agency agreement can be amended. I would suggest that you seek advice so that you can ensure that the amendment is valid and complies with the Strata Schemes Management Act 2015.
If your proposed amendment is to an existing agreement, the amendment will need to be in writing, signed by the strata manager and approved by resolution of the owners corporation at a general meeting.
If the proposed amendment is to a proposed strata management agency agreement, i.e. the owners corporation has not yet entered into the agreement, depending on which standard form agency agreement is being proposed, amendments may have to be done by way of addendum due to copyright issues.
Please note that strata managing agents will usually price their agency on the risk involved in managing a particular strata scheme. If you are removing or varying provisions which will increase the risk involved in managing the scheme or removing the strata managers protections, the fees will likely increase to reflect this.
This post appears in the February 2024 edition of The NSW Strata Magazine.
Matthew Jenkins
Bannermans Lawyers
E: enquiries@bannermans.com.au
P: 02 9929 0226
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