- This topic has 7 replies, 4 voices, and was last updated 2 years, 8 months ago by .
-
Topic
-
Our SP is in NSW. We are going to change our Strata Manager for many reasons but the worst being over charging and poor service, no response to emails, or the complete misinformation given, helping themselves with our strata funds with Additional Fees which we don’t have the right to approve, but we have an invoice approval charge monthly for most other invoices but the Strata Manager. It takes multiple emails, calls, even photos just to get one small thing done. Anyway we have been interviewing other strata managers and believe we have found a suitable boutique company.
we looked up our agency agreement that was signed at the AGM in July 2018 (a 3 year contract) we all voted yes to this new agreement. while no members of the committee whom had been voted in signed the agreement, we requested that other owners present at the meeting sign the agreement which was done. So our agreement is saved in the ‘portal’ of the Strata Manager and we note that the agreement expires in November 2021??
how can an agreement that is signed by owners of the property at the AGM held in July 2018 have a date that is 3 month hence?? this doesn’t make sense.
would it be that the agreement wasn’t signed by the Strata Company till then?
would it be that Strata Company didn’t bother to put the common seal on the document till then?
how is this possible.
we agree at the AGM for another 3 years yet it’s really 3 years and 3 months?is this correct practice – has this happened to anyone else?
can we find out why or is this maybe a mistake?any thoughts
-
Replies
-
we agree at the AGM for another 3 years yet it’s really 3 years and 3 months?
You need to check renewal terms in the SM’s contract.
IME what usually happens is that the OC’s decision to renew the SM’s contract is a decision to renew from when the current contract actually ends, not from the date that the OC voted.
Also be sure that the OC gives the required advance termination notice.
Firstly go back to the minutes of the 2018 AGM. What was the date of the contract tendered by the SM.
One explanation could be that the previous contract expired inNovember 2018 and the new contract started inNovember.
If there is ambiguity just let the contract run to November 2021.
The SM is probably going to stand their ground. In which case you need to go to court to get the contract sorted out and then terminate the SM. Thst all takes time. If you are inSydney, the courts are only handling urgent cases,so you wait time gets even longer.I have a feeling that the standard agreement says that the strata scheme must give three months notice that they are going to terminate the contract at or after its end date. In other words, you should have told the SMs they were on their way out back in April but talk to your new strata manager and they’ll be able to advise.
BTW this is not as unusual as it sounds – e.g. if landlords don’t give tenants approriate notice that they will not be renewing their lease, then the tenancy just rolls over.
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.
I think Jimmy is confusing a few things.
The SSMA states thst the SM has to give the OC three months notice prior to the end of the agreement. (I think the intention of the legislators was to alert OC thst the contract was ending and provide time to look for a new SM or decide what to do. In my experience most SM do not give this notice).
I recall that there is such a clause in the SCA agreement. The reality is that this is a nothing clause. By the SSMA a management agreement ends on the date stated in the agreement, and can be no longer than 3 years.
The SM cannot claim they did not get notice because the date of the end of the contract is in black and white.
The OC does not need to terminate the contract in these cases as the contract extinguishes normally.
I think Jimmy is confusing a few things. The SSMA states thst the SM has to give the OC three months notice prior to the end of the agreement.
I sit corrected. Dare we assume the strata manager didn’t provide this notice? In which case the penalty is …(drum roll) … nothing.
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.
The OC does not need to terminate the contract in these cases as the contract extinguishes normally.
But in the OP’s situation, I suspect the OC voted to “extend” the contract. Meaning it was not a new appointment:
we agree at the AGM for another 3 years yet it’s really 3 years and 3 months?
If so, the question is: From what date does that 3 years extension start? Is it from the date of the vote or from the date that the existing contract would have terminated?
I suspect it’s from the latter unless the contract had already expired.
In the matter of the contract, the applicable law is the one of contracts, save that the SSMA overrides when it comes to the length of the term.
A contract should specify the start date, the length of the contract or a finish date and the consideration. If there is ANY ambiguity about the above then the contract could be considered invalid by a court.
It pays to have someone familiar with contract law advise when signing a strata management contract. It’s not really the realm of strata managers. They usually just put up the standard SCA contract, which in my opinion is flawed in a few areas. ( but I am not a lawyer).
- You must be logged in to reply to this topic.