A managing agent can only be appointed by the owners corporation by a general resolution. If a strata managing agent has been appointed by the developer before the first AGM, then that appointment ends at that meeting.

If a strata managing agent is appointed at that meeting, then they can only be appointed for a maximum of 12 months. After this, any future appointment of them, or another strata managing agent, can only be for a maximum of 3 years, and after this time, a new contract must be entered into.

 Licensing:

A NSW owners corporation may engage a licensed strata managing agent to help manage their strata scheme. Unlike the position in Queensland, only a person who is licensed (under the Property, Stock and Business Agents Act 2002) can be appointed.

What are their responsibilities?
An owners corporation can choose the responsibilities of their appointed strata managing agent in negotiating the contract with them (apart from where the owners corporation’s powers cannot be delegated).

A strata managing agent cannot:
• delegate their powers, authorities, duties or functions to others;
• set the contributions to be paid by the owners;
• make a decision on a restricted matter (a matter that needs a special or unanimous resolution, or which the owners corporation has decided must go to a general meeting).

Strata managing agent appointments

A managing agent can only be appointed by the owners corporation by a general resolution. If a strata managing agent has been appointed by the developer before the first AGM, then that appointment ends at that meeting. If a strata managing agent is appointed at that meeting, then they can only be appointed for a maximum of 12 months. After this, any future appointment of them, or another strata managing agent, can only be for a maximum of 3 years, and after this time, a new contract must be entered into.

Extending the term of appointment

The strata committee can extend the appointment of the strata managing agent for successive blocks of up to 3 months after their term would have otherwise expired, but not past the next AGM. This allows the owners corporation time to seek a new strata managing agent, if they wish. If the strata committee does this, and then decides not to re-appoint them, then they must give the strata managing agent at least 1 month’s notice of that decision before their services can be terminated.

If an agent is appointed for the maximum allowed period of 3 years, then their contract automatically includes an option for them to extend their appointment for a further 3 months. The agent has to advise in writing that they will do this, but this is overruled if the owners corporation has given the agent 3 months’ notice that it will not be re-appointing them.

Ending a strata managing agent agreement

When an agency agreement is due to end, a strata managing agent can be dismissed by a majority vote at a meeting of the owners.

An owners corporation may at any time resolve at a meeting to terminate the agreement based on its terms, or apply to the NSW Civil and Administrative Tribunal (the Tribunal) for an order to:
• terminate the agreement;
• require compensation to be paid;
• vary the term or a condition of the agreement, or declare a term of appointment void;
• require a particular action to be taken, or not taken, by a party to the agreement.

Gifts, benefits and commissions

A strata managing agent must not request or accept a gift or benefit valued at more than $60.00 through their role in the strata scheme. Otherwise, they could be fined up to $2,200.00, or disciplinary action could be taken.

At the AGM of the owners corporation, the strata managing agent must also report if their current role in the strata scheme has earned them any commissions (not disclosed in the agency agreement) or training service benefits:
• during the last 12 months;
• likely to be received or paid for in the next 12 months.

Liability limited by a scheme approved under Professional Standards Legislation
Disclaimer – This article is provided for information purposes only and should not be regarded as legal advice.

 

 

THE MBA PARTNERSHIP ACCOUNTANTS

Management Rights Accountant

PAUL GAFFNEY | MANAGEMENT RIGHTS

The MBA Partnership is one of the most experienced firms of management rights accountants in Australia. Many of their clients are new to the management rights industry, and with over 30 years experience in management rights they have the expertise to help you set up correctly from the beginning. From due diligence, accounting, taxation and auditing Paul and his team can guide you through the entire process.

Phone: +61 7 5557 8700

LEVEL 3 "PIVOTAL POINT"' 50 MARINE PARADE SOUTHPORT QLD  4215

pgaffney@mbapartnership.com.au | managementrightsaustralia.net 


 

Management Rights & Motel Finance P/L

Mark Ryall

 Mark Ryall | MANAGEMENT RIGHTS

Management Rights and Motel Finance Pty Ltd is an industry leader in providing specialist finance needs to companies and individuals embarking on the purchase of a Management Rights business. Mark and his team is dedicated to helping you with all your management rights and motel finance needs! We work around the clock to make sure you receive the best deals.

Suite 4, Level 2 / 247 Bayview St Hollywell QLD 4216

Phone: 07 55641100 | 0419 640 215
Fax:     07 30140108

mark@mrmfinance.com.au | www.mrmfinance.com.au

Australian Credit Licence No: 378366


 

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SMALL MYERS HUGHES LAWYERS

COL MYERS | MANAGEMENT RIGHTS

SMH Lawyers handles all aspects of a Management Rights transaction from establishing, purchasing and selling Management Rights to advising bodies corporate on strata related issues and disputes. Col Myers and his team of experts is constantly exposed to all aspects of the management rights industry which means they can proactively advise when and how to best handle management rights to work effectively for individual scenarios.

Phone: +61 7 5552 6604 | Mobile: +61 417 620 516

Level 2, 17 Welch St Southport Qld, 4215

info@smh.net.au | www.smh.net.au  


 

Management Rights Brokers

 

 

 

 

 

Narelle Filmer | Linda & Wayne Stoll

Think Management Rights’ is a division of the nationally recognised First National Real Estate franchise. This team of specialist brokers operate throughout the state of Queensland. With over 15 years as owners, managers and sales agents in Management Rights industry, this team has a great deal of knowledge and experience to bring to the MRA seminars.

Wayne and Linda Stoll | Listings: Sunshine Coast / Gold Coast Region
Phone: 0452 181 505
wayne@thinkmanagementrights.com.au | linda@thinkmanagementrights.com.au 

Narelle Filmer | Listings: Gold Coast / Brisbane Region
Phone: 0459 229 744
Email: narelle@thinkmanagementrihgts.com.au  

www.thinkmanagementrights.com.au 


 

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