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  • #50667
    AvatarClass66
    Flatchatter
    Chat-starter

    We moved into a brand new apartment building and had the first AGM where we were asked to sign a strata manager contract with a 2 year term.

    We advised that we understood that it was a law that an inaugural AGM strata manager contract could only legally be for 12 months. The Strata manager in question (who chaired the meeting) said it was not worth his while for 12 months and insisted on a 2 year contract. We were unsure of the facts and were pressured into signing a 2 year contact against our will.

    We have subsequently been dissatisfied with the performance of the strata management and advised him that we intend to terminate his contract after a 12 month period as his contract is not legal.

    He has advised that it is and he intends to hold us to the two years. His reasoning is that he (deceptively) wrote two sets of minutes, one for the inaugural AGM, and another set of minutes for a GM, the only items being the appointment of the strata managers for two years and a building manager. There was only ONE meeting.

    I would appreciate any help with this

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  • #50669
    Jimmy-TJimmy-T
    Keymaster

    Section 50 of the Strata Schemes Management Act is absolutely clear on this.  The first term can only be for one year (see below).

    The fact that the strata manager demanded two years is all the evidence you need that their contract should be rescinded. Forget the two sets of minutes – they either don’t understand basic strata law or they are hoping you don’t.

    The one-year rule was brought it to let owners corps see how the SMs would perform and (to a lesser extent) let SMs see how hard the block would be to manage.  Experience tells us that if the SM does a reasonable job in the first year, the strata scheme won’t be rushing to change them.

    Your strata manager either doesn’t know basic strata law or they are con artists and frauds.  How many reasons do you need to sack them?

    If they resist or make things difficult, tell them you plan to report them to Fair Trading (who won’t do anything but it will make you feel better).

    I thought this kind of dodgy dealing had been stamped out. Once again, I am stunned! As for what to do, send them a link to this Forum post.

    As for the dodgy minutes of the non-existent meeting, they are irrelevant. The law doesn’t allow you to give them a two-year contract and if they were real strata managers they would know that. Please, report them to Fair Trading anyway, just in case.

    Strata Schemes Management Act
    Section 50 Term of appointment of strata managing agents

    (1)  The term of appointment (including any additional term under an option to renew) of a strata managing agent for a strata scheme expires (if the term of the appointment does not end earlier or is not ended earlier for any other reason)—

    (a)  if the strata managing agent is appointed by the owners corporation at the first annual general meeting, at the end of the period of 12 months following that appointment, or

    (b)  in any other case, at the end of the period of 3 years following the appointment.

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