#25175
Whale
Flatchatter

    Dudley – with regard to your question about the need to reappoint your strata managing agent upon the introduction of the new NSW strata laws in November, the Department of Fair Trading’s website states that if a strata managing agent is appointed before 30 November 2016, then the term of their appointment ends either 3 years from the date of that appointment, or 6 months after the introduction of the new strata laws whichever is the later date.

    There may be a couple of reasons (at least) why your strata managing agent is proposing a new Strata Management Agency Agreement, the first being that under the current laws those Agreements merely roll-over for successive terms unless earlier terminated by one of the parties, whereas under the new laws the maximum permitted term is 3 years.

    Secondly, the new laws require owners corporations to approve of any compulsorily declared commissions that are paid to their strata managing agent (e.g. from strata insurers), and the new form of Agreement that I’ve seen allows strata managing agents to increase their agreed service fee by an equivalent amount in those circumstances.

    You can read more on the post November 2016 “strata managing agent reforms” HERE.