[froggy23]

Thank you so much for your response. It is nice to get some reassurance.

 

The purpose I thought we would go to mediation is to terminate our contract with them, but I don’t totally understand the process and possible outcomes of mediation so I could be a mile off. They will not let us terminate at this stage stating that we will need to pay them out the remainder of the contract.

 

I have spoken to the Department of Fair Trading and they just say we need to seek legal advice. I am not sure how to go about this either. You say we can get a letter sent to the the strata manager, do we just request this piece of work from a strata lawyer? We are concerned about cost and getting lawyers involved as we have a very costly debt collection currently occuring.

[froggy23]

Update:

 

We asked our current strata company which clause in relation to the term does apply i.e what exactly is the term of the agreement according to our agreement?

 

The response was:

we advise that all 3 term options apply – however, if the OC elects to terminate and pursue either of options 1 or 2, Clause 15 entitles the strata company to be paid out for the remainder of the three (3) year term

 

Do you think mediation is our next step given this response?

 

Thanks

[froggy23]

Thank you so much for your advice to date, it has been so helpful. There has been nothing written down by an EC member as far as I am aware in relation to agreeing to anything to do with clause 5 of our contract.

 

I like your idea of asking the strata manager what are the terms of the agreement and what there evidence is for enforcing cause 15.

 

I will keep you up to date on the progress just in case heaven forbid this happens to someone else

 

Thanks

[froggy23]

Sorry I thought it would be easier to send the sample as the wording is exactly the same rather than typing it all out

 

Clause 5: This agreement commences on June 2011 and:

• May be terminated by either party giving not less than 3 months written notice of termination.
• Ends at the close of the next annual general meeting of the principal
• Is for a term of 3 years. At the expiration of this term, the agreement may continue for a further term of 3 years. If this further term is more than 3 months, the Principal may terminate the agreement by giving 3 months notice within that subsequent fixed term. If the principal terminates the agreement, the principal shall not be subject to any penalty.

 

I have underlined the sections that were completed by the strata agent. Next to each of these dot points is an asterisk that states ‘delete whichever is inapplicable’- none of these have been deleted on our contract.

 

Clause 15: If this agreement is terminated by the principal for any reason prior to expiry of its term (if any), the management fees for the remainder of the term will then become due and payable.

 

Hope this helps. Thanks so much for your help.

[froggy23]

I am in NSW.

I have attached a link but I am not sure if it is going to work as it is a PDF sample of the document.

https://www.reinsw.com.au/FM00500-08-03/default.aspx

I googled ‘management agency agreement owners corporation form sample’ to get the result- it is on the real estate institute of NSW website.

[Author]

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