This article about a recent case clarifying the validity of caretaking agreement extension rights has been supplied by Mahoneys.
A recent Queensland case centred on the validity of caretaking agreement extension rights, a topic that required clarity.
The case arose when a body corporate sought to extend the term of their caretaking agreement. However, an owner in the building challenged the validity of this extension, arguing that caretaking agreements could only be extended once and for a limited period. The applicant’s interpretation could have had severe consequences for both caretakers and body corporates across the state.
In the landmark decision, the court confirmed that caretaking agreements can be extended multiple times, provided they adhere to certain conditions. This decision provides much-needed clarity and certainty for both management rights holders and bodies corporate.
In this recorded conversation, Ben Seccombe, Partner from Mahoneys specialising in management rights law, discussed the case in detail. He explained that caretaking agreements are contracts with a maximum term, which can be extended or topped-up with the approval of the body corporate. The recent case clarified that there is no limit to the number of extensions that can be granted, as long as they do not exceed the statutory maximum.
Ben Seccombe covers the following in the conversation:
- What is a top-up or extension on a caretaking agreement?
- A detailed overview of the recent decision regarding Atlantis West [2024] QBCCMCmr 340.
- Why legal clarification about caretaker agreement extensions was required.
- Why the applicant was unsuccessful.
- The potential consequences if the applicant had been successful.
- Whether it is still advisable to seek legal counsel regarding caretaking agreement extensions?
The Adjudicator’s Order, Atlantis West [2024] QBCCMCmr 340 removes a potential barrier to the renewal and extension of caretaking agreements. It also reinforces the importance of seeking legal advice when dealing with such matters to ensure compliance with relevant laws and regulations.
Presenter
Ben Seccombe
Mahoneys
E: info@mahoneys.com.au
P: 07 3007 3753
Article author:
The Lookupstrata Team
This post appears in Strata News #715.
Have a question about caretaking agreements or something to add to the article? Leave a comment below.
Read next:
- QLD: Mahoneys secures important decision for the Management Rights & Strata Industry
- QLD: Q&A Management Rights – Caretaking and Letting Agreement + Extensions
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There remains no obligation to extend caretaker manager contracts either.
The decision was from the Commissioners office, it was not a Court decision so it could still be challenged. Mind you I would not recommend that path.