SCA Strata Management Agency Agreement – 2016 version?

That’s probably because Strata Management companies want to rope you in on the old SCA contract.

The point of the new legislation is to make it easier to change strata managers. They don’t like it because they actually have to be nice to you now.

The contract is valid to the end of the three years but the automatic renewal is not valid. There are various provisos as to the  renewal options but they are basically for short periods to allow the SM and owners corp time to decide whether or not they want to renew. 

This is what the new Act says:

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.
(2) A person may be reappointed by the owners corporation by resolution at a general meeting as the strata managing agent for a strata scheme at the end of the person’s term of appointment.
(3) The appointment of a strata managing agent may be terminated in accordance with the instrument of appointment if authorised by a resolution at a general meeting of the owners corporation.
(4) The term of appointment of a strata managing agent may be extended by the strata committee for successive periods of up to 3 months after it would otherwise expire (but not for any period that would extend beyond the date of the next annual general meeting of the owners corporation) pending a decision as to the reappointment of the strata managing agent.
(5) However, if a strata committee has extended a term of appointment of a strata managing agent under this section, the strata committee must give the strata managing agent at least 1 month’s notice of a decision not to reappoint the strata managing agent or not to further extend the appointment.
(6) A strata managing agent must give the owners corporation written notice of the end of a term of appointment:
(a) at least 3 months before the end of the term of appointment, and
(b) at least 1 month before the end of each extension of a term permitted by this section.
(7) An instrument of appointment of a strata managing agent for a period of 3 years (as referred to in subsection (1) (b)) is taken to include an option for the agent to extend the term of the appointment for a maximum period of 3 months after the end of the term of 3 years, if the owners corporation decides not to reappoint the agent and does not extend the term of appointment under subsection (4). The agent must give the owners corporation written notice of the exercise of the option.
(8) A strata managing agent is not entitled to exercise an option under subsection (7) if the owners corporation gives the agent written notice that the agent will not be reappointed at least 3 months before the end of the term.
(9) In this section, a reference to the appointment of a strata managing agent includes a reference to the reappointment of a strata managing agent.

Hi. I need clarification.

Our SM’s 3 year contract ends this time next year. Our AGM is due January or February next year.

With the new laws rolling in, are we bound to our SM til the end of his contract? Or can we vote him out at the next AGM? If the latter, then we should give notice now – is that correct? 

Thanks in advance. 

Hello All,

What happens if you do not have an executed agreement? The old agreement expired in September and our SM forgot to get a new agreement executed.

The EC tried to replace the SM at the last AGM however they arranged proxies and the vote for the replacement SM was defeated.

Thank you for your advice.