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Our first BMC Strata Management Agreement, signed by the NSW developer last year, is for 10 years!
Is this ethical?
Is this a restraint of trade?
Does the Residential Owners corporation, who were not formed at the time the document was signed by the developer have to accept this?
Does anyone have experience in how this can be changed?
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In Nsw the strata management contract cannot be longer than three years. Before the three year period , or before the expiration date of the contract, the owners need to renew the contract by a resolution at a general meeting. At that time the contract can be voted to another manager.
However looking at the acronyms in your post, I suspect that what has been enacted is a contract for a building manager. Building management contracts are not subject to any time limits. However, whilst the developer can propose a building manager, usually his mate, the contract needs to be confirmed by way of a resolution at the first agm.
Check the minutes of the first agm to see whether the contract was correctly resolved.