This article about strata management contracts ceasing to have effect has been supplied by Catherine Lezer, President, Strata Community Assoc WA.
Today represents a momentous day for the Strata Industry, with strata management contracts ceasing to have effect as from today.
With the proclamation of the revised Act on 1 May 2020, the Industry was given six months to seek a variation to contract or enter into a new agreement and ensure that as from today, their contract complies with the specific requirements of the revised legislation.
SCA (WA) would like to remind strata companies that if they had a legally binding contract on Friday the 30th of October, then they should not be using the cessation of contract to terminate or drive down fees where they have been receiving an acceptable level of service and they should be behaving ethically and pro-actively in negotiating a new contract.
SCA WA would also warn strata managers, that as from today, if they have not entered into a variation of their old contract, or entered into a new contract over the last six months, then there is likely no valid agreement in effect between parties. Strata managers should seek legal advice as to their position when it comes to retaining the books and records and continuing to provide a remunerated management service.
The legislation stipulates that the strata company and the strata manager must have a contract, even in the case where there is a volunteer strata manager.
While Landgate have confirmed they will not be policing this requirement, there are several matters at SAT involving contract negotiations, so until there is clear precedent, SCA (WA) advises each party to behave ethically and seek legal advice.
Strata Community Association WA
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