QLD: Does a three-year body corporate management agreement automatically end on its anniversary date?

Question: Does our three year agreement with our body corporate manager automatically dissolve on the third anniversary of its commencement date?

We would like to terminate our current body corporate managers.

Does an agreement with a three year term automatically dissolve on the third anniversary of its commencement date?

Copy of terms below:

7. 7. Ending this Agreement
   
   • 7.1 This Agreement continues after the Initial Term for a successive term each equal to the initial Term until termination.
   • 7.2 This Agreement may be terminated at any time by the mutual consent of both Parties.
   • 7.3 The Body Corporate: may ‘…..’ by giving at least three (3) months written notice prior to the end of each Term, of a resolution passed at a General Meeting which has been convened and conducted in accordance with the Act.

Answer: After the three years, the person cannot continue to be a body corporate manager without a new agreement.

Section 129 of the Accommodation Module (139 of the Standard Module) is clear on this position, which relevantly provides:

1. The maximum term including any renewal or option periods is 3 years;
2. If the agreement states it goes for longer than 3 years – it is treated as ending after 3 years; and
3. After the 3 years, the person cannot continue to be a body corporate manager without a new agreement.

Todd Garsden
Mahoneys
E: tgarsden@mahoneys.com.au
P: 07 3007 3753