The body corporate wishes to decline all future requests for additional 5 year extensions to the caretaking contract. Are there any problems in doing this?
Our caretaking cost is $270,000 pa for a 25 year term with a 3% minimum annual increase.
The Body Corporate recognises the rip off and wishes to decline all future requests for additional 5 year extensions to the caretaking contract. Are there any problems in doing this?
One individual cannot ever speak for the body corporate.
The simple answer is ‘no’.
What I would suggest is that the author of the question is not the body corporate. They are almost certainly a lot owner and perhaps even a committee member. But one individual cannot ever speak for the body corporate.
The legislation allows a body corporate to agree (or refuse) to extend management rights agreements at a general meeting. If a motion to add a term to the management rights agreements is put to a general meeting the body corporate (as opposed to individual owners) will decide that as often as asked. That is the nature of a strata democracy and the legislation that regulates it.
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With more than 30 years’ experience in property, management rights and body corporate law, Frank is a beacon of knowledge and a renowned strata-industry expert. Known for his straight-shooting style and commercially driven advice, Frank cuts through the most challenging legal problems to deliver real-world solutions.
An active member of the strata community, Frank generously shares his time and experience to help educate the broader industry on all things strata law. He embraces his role as an industry leader and is committed to continued industry innovation and ensuring everyone in the strata sector has access to practical resources and solutions as they navigate through the strata maze.
He regularly presents to all industry segments and also speaks at Queensland Law Society events on strata law issues to other lawyers. Frank is a regular contributor to LookUpStrata.
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