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Topic
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We are locked into 2 contracts for a period of 25 years set up by the developers.
The first being a Caretakers Contract and the second being a Lift Contract. Both we cannot get out of and neither contract was signed off/approved by the owners.
Both of these contracts are a big drain on the levies of the owners.
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Replies
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Matilda – if you’re in NSW then you may not be as locked in as you think.
Under the provisions of Sect 40B of the NSW Strata Schemes Management Act (1996) any Caretaker Agreement (a “Contract”) that’s been setup by a Developer compulsorily expires upon the conclusion of the first General Meeting of the Owners Corporation, or if it was actually made by the Owners Corporation at that first General Meeting then it expires after ten (10) years, irrespective of any roll-over provisions.
As for the lift maintenance Contract, I thought that such documents were required to incorporate provisions for termination, including for early termination even if that involved penalties, but surely there are provisions for standards of service and cost efficiencies that your Owners Corporation could test against the market for both Contracts, if only to keep locked-in contractors on their toes.