Question: Our strata manager wants to add a gallery vie variation to their contract. What is a gallery vie variation? Why should we agree, and what are the benefits to owners?
Answer: A gallery vie clause limits the rights of the body corporate to terminate the agreement in some very specific circumstances.
It would be unusual for a strata manager to want to include a gallery vie clause in their administration agreement.
However, a gallery vie is a clause that limits the rights of the body corporate to terminate the agreement in some very specific circumstances – which primarily benefits the other party to the contract and their financier.
It is usually not a controversial decision to agree to the clause as it will allow the other party to more readily secure finance to purchase the business related to the agreement. If the clause was not agreed to, the potential pool of managers would be limited. It may not provide for a quality manager (who would also be under pressure from their financier and financing terms).
Todd Garsden Mahoneys E: tgarsden@mahoneys.com.au P: 07 3007 3753