Our strata manager has submitted a new strata management contract using the SCA form Version 2024. Clause 6.2 states the agent’s maximum liability shall not exceed any cap set by a scheme approved under Professional Standards Legislation and applicable to the agent.
I contacted SCA about this and this was their reply.
This agreement was updated as of February 2025 as part of SCA’s ongoing efforts to align with government reform, the Unfair Contract Terms Act, drive best practice and support continued reform across the strata industry.
Schedule 12 of the Property and Stock Agents Regulation 2022 noted terms specific to an agency agreement for management of strata or community title land that are to be excluded.
2A Terms excluded from agency agreement
(1) The agency agreement must not include a term or terms to the effect of the following—
(a) the owners corporation or association must pay for the agent’s professional indemnity liability, including insurance excess,
(b) the agent’s liability is limited to a specified monetary amount.
2A (2) states that subsection (1)(b) does not apply to an agreement covered by a professional standards scheme that has been approved by the Professional Standards Council, within the meaning of the Professional Standards Act 1994, and that is in force.
SCA (NSW) has a Professional Standards Scheme, therefore any member of SCA are able to have this term as they are undertaking the professional standards and requirements of the scheme instrument. This includes annual reporting of their professional indemnity, significant regular CPD education above the NSW Fair Trading CPD requirements.
For more detailed discussion or clarification, we recommend they contact the SCA (NSW) office directly to ensure they receive the most accurate and appropriate response to their concerns.Clause 6.4 of the new form provides that the agent is discharged from all liability under contract, tort or otherwise at the expiration of 3 years from the date of the act given rise to the liability.
This is what SCA replied:
Clause 6.4 of the new form provides that the agent is discharged from all liability under contract, tort or otherwise at the expiration of 3 years from the date of the act given rise to the liability. It was increased from 2 years to 3 years and included reciprocal rights to both the agent and the owners corporation.
SCA Agency Agreement User Licence – Terms and Conditions
“The Corporate Member may make amendments to the SMAA template by hand alterations or by attaching special conditions to reflect terms agreed with specific clients. However, the Corporate Member does so at its own risk, is responsible for obtaining its own legal advice in relation to the implications of such amendments and releases SCA (NSW) from any liability in relation to such amendments.”
In short, get your strata manager to get the latest version of the contract from SCA and bear in mind that you can still make changes that you both agree on.