This article discusses whether automatic caretaker contract extensions are legal in Queensland and what factors determine their validity under body corporate legislation.
Question: Can a caretaker contract state the following: “First extension, the end date referred to in clause 1.4 shall be automatically extended for a period of five years”? Is this legal in QLD?
Answer: It is possible that a management rights agreement has an automatic extension option clause for a further five years.
The answer to this question depends on a number of other terms of the agreement. It is possible that a management rights agreement has an automatic extension option clause for a further five years. However, whether the option is valid will depend on a number of things, including the module, how the option was approved, what the balance term of the agreement is, etc.
This post appears in Strata News #651.
Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753
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