A LookUpStrata reader wanted to understand whether their Strata Committee chairman could perform the role of caretaker without a written or binding contract, as agreed by the strata lot owners of the building.
In summary, complex legal issues arise here, the most alarming of which is whether or not the “caretaker” is insured and if and how he is reimbursed.
Whether or not the “caretaker” is indeed a building manager within the meaning of the Strata Schemes Management Act 2015 depends on a number of factors. This will help clarify which legal issues arise.
As for the absence of a written contract, an Owners Corporation cannot appoint a building manager without an instrument in writing ie a contract which must be passed at a general meeting of the Owners Corporation by ordinary resolution (Strata Schemes Management Act 2015 Section 67).
For our detailed response, and an overview of the factors which help establish whether the “caretaker” is legally viewed as a building manager, please follow this link.
For a detailed explanation of the differences between a Strata Manager, Building Manager and Property Manager. Please have a look at this article.