#28971
Lady Penelope
Strataguru

    The ‘devil’ is usually in the detail in these contracts. Perhaps next time that the contract is about to be renewed your OC can remove the clause that refers to commissions, or your OC can change it to reduce the amount of commission to a number that better suits your scheme’s circumstances.

    If you hold all three executive positions then you have effectively been doing the job of the SM for free over all of the time prior to the employment of the SM. I wouldn’t be moving back to a self managed mode unless there are more willing and interested owners who will join the committee and share the load!

    I would contact the SM again next week, when the SM should be back at work, about the Letter of Authority and the lack of response, and also reiterate the SM’s contractual boundaries and delegated duties.

    Keep a record of any perceived performance transgressions and look again at the SM contract to understand the termination for ‘breach of duties’ provisions in the contract.

    If things become ‘messier’ then you can also seek mediation through the OFT. Information from their site is below:

    Dispute with a strata managing agent 

    The NSW Civil and Administrative Tribunal (the Tribunal) can make decisions about disputes with a strata managing agent.

    Disputes are resolved at a Tribunal hearing if they are not resolved at mediation or determined inappropriate for mediation.

    Only an owners corporation can apply to the Tribunal for an order to resolve a dispute with a managing agent about their agreement. The Tribunal, in dealing with such a dispute, can make the following orders:

    • terminate an agreement
    • require payment of compensation by a party to the agreement
    • change, confirm or declare invalid the terms and conditions of the agreement
    • dismiss the application.

    The Tribunal may make an order to terminate an agreement due to:

    • the managing agent’s unsatisfactory performance under the agreement
    • unfairness of charges paid
    • a strata managing agent not disclosing commissions or training services, or disclosing these in good faith
    • the agreement being harsh, oppressive, unconscionable or unreasonable
    • the managing agent not disclosing an interest, which led to them being appointed

     

    This is not a particularly good start to your scheme’s relationship with the SM.