Strata Law Reform: Impacts on Strata Manager Agreements
The new strata laws have made significant changes to the appointment and role of strata managing agents.
Agents’ appointment terms are limited to a maximum of 3 years (or 12 months for an appointment at the first AGM). Existing agreements will run their agreed term, as long as it does not exceed three years or extend more than six months after commencement of the new laws, whichever is later. Developers and persons connected with them are prohibited from being managing agents for 10 years from registration of the strata plan, so a lot of existing agents will not be eligible for reappointment when their existing agreement comes to an end. As a result, a lot of existing agency agreements are going to expire earlier than expected, possibly as early as 31 May 2017 and a lot of existing agents aren’t going to be eligible for reappointment.
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