NSW: Q&A Strata Management Quotes and Appointments


Question: We wish to change strata managers. What is the procedure regarding the Strata Management company during this process? Do they have a vote? Can they vote against the change?

Answer: Care must be exercised to comply with the terms of the contract appointing the current Strata Management Company and with the strata legislation.

Your question appears to relate to changing your strata manager during the currency of their appointment. If so, care must be exercised to comply with the terms of the contract appointing them and with the strata legislation.

Usually and depending on the specific terms of the contract, you can terminate the agreement by mutual agreement. In your case, this appears unlikely, therefore, you will only be able to have early termination of the agreement in case of breach by the agent in accordance with the procedure outlined in the contract and with a resolution at a general meeting. In the absence of proven breach, the strata manager may insist on being paid out for the balance of the term of the contract.

As the strata manager is not an owner in the Owners Corporation, it will not have a vote, though that is not to say that they will not have proxies directing them to vote against their own termination.

The Owners Corporation/Strata Committee should seek legal advice for your specific circumstances to ensure any termination is lawful.

For the full question and our detailed response, visit the original publication at Look Up Strata.

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Please note that this article is provided for information purposes only and is not a substitute for professional legal advice.