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Hello jimmy
The 12 month term of the Managing Agency Agreement of our Strata Manager expires in June this year, the review date being at each Annual General Meeting.
Under the terms of the Agreement the notice is no less than 3 months written notice before the expiry date. If not terminated, the Agreement continues automatically for successive terms until terminated, with the notice then being 3 months during the successive term. (This is all probably pretty standard?)
The Agreement states that “a notice can only be given by the owners corporation if authorised by an appropriate resolution of the owners corporation”. Does this siimply mean that at the next Annual General Meeting a quorum agreement is reached by the Owners Corporation to terminate the Agreement? Or, do all members of the Owners Corporation have to vote on this matter. Could you please advise of the exact procedure, so that we follow due process.
Heres a curly one! What we would actually like to do is replace our current Strata Manager (appointed by the developer) with another Manager in the partnership (who is known to us and comes highly recommended). Any clues on how to go about this?
Appreciate your help.
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I’d say, based on what you’ve written, that you have to have notice served three months before the expiration of the contract by agreement reached at a general meeting (not necessarily the AGM). In other words, you could call an Extraordinary General Meeting specifically to terminate the agreement.
The other matter is trickier but, ironically, may offer a solution. You could approach the strata management firm right now and say you are only prepared to continue with them if they write into the contract that the preferred manager will be handling your building. If they refuse to do that, start the procedure immediately to organise an EGM to cancel the contract. It’s unusual but you are the customer and you have the right to choose your manager. Since you are running out of time, you might get the EC to issue the notice to terminate right now, with the proviso that it is subject to confirmation at a general meeting. And don’t sign another contract that is so hard to get out of. Next time, make sure notice of termination can be issued by the EC, not the Owners Corporation. There’s no point in having a termination clause if it’s impossible to invokeIf you want to be alerted when anyone replies to your posts or responds to this topic, please register and login, then you will be able to subscribe to the topic. The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers. NB: Longer threads may spill over to additional pages - look for the numbers on the bottom right, under the last post.