How do we change strata managers?

A strata managing agent is to be appointed by instrument (a management agreement) in writing authorised by a resolution (passing an ordinary resolution motion) at a general meeting (extra ordinary or annual general meeting) of the owners corporation.

This means the old agreement must be terminated, preferably by time rather than firing. If you fire the agent he/she may seek compensation for the duration of the unserved agreement period.

You will need to read your agreement to see the “exit” requirements. It should involve giving the agent notice that the SP seeks to not renew the agreement, i.e. terminate the agreement. There are some timeframes for giving of this notice in some agreements so you will need to read the agreement thoroughly.

To not renew or terminate the existing agreement will require a motion at a general meeting. This motion will need to pass by ordinary resolution.

A new agreement with the new agent will need to be established. To do this you should find a new agent willing to take on the role and place a motion on the agenda for a general meeting to accept the costs and terms of the new agreement. This motion will need to pass.

If an agent (the new agent) intends to act (or offers to act) for a principal in the management of property and is aware that another agent is or other agents are managing that property for the principal, the agent must, unless the principal otherwise directs in writing, disclose their intention to act or offer to act to the current agent or agents.

If you need to see records then the current agent can be nice and let you see them or you can access them by doing what is called a section 108 search.
Section 108 of the strata Act gives owners, or there nominee, the authority to request and see an extensive list of document. It costs money to do a s108 search ($30 for the first hour and $15 per half hour there after) and the request needs to be in writing, stating what you want to see and include the fee.

You will be able to get a copy of the strata role in one hour easily – that will have all the owners’ names and postal details. you will also have time to get a copy of the existing agency agreement. you may need to take your own copier if the agent doesn't want to play nice.

Then you can lobby all the owners.

So you need a new agent prepared to do the job, you need to know how to terminate the existing agreement; you need separate motions to terminate the existing agreement and adopt the new agreement. To do all this you may need to do a s108 search and get a copy of the strata role and current agreement.

If you need more information just post questions.

I wish you luck Sallyk – and hope you have some patience and political skill. 

Our unit complex (2 buildings, 24 units) finally changed strata managers earlier this year. I couldn't find any owners who were opposed to the idea of change, but it did take some work. And quite a few months.

Our (now former) strata management firm was a pretty well known local real estate agent whose appointed strata manager seemed to have no concept of customer service. The company's owner treated our formal written complaint with disdain. Once we gave notice – which we could only do after our EGM approved the change – it became evident that the last remaining staff member who was pleasant to us had been instructed to provide minimal service. But enough of that… I'm glad I never have to deal with them again.

Before we could appoint a new strata manager, our EC discussed what it was we actually wanted from someone in this role. Then I found several companies to provide quotes, inviting them to visit the premises to inspect and discuss what they were getting themselves into. The company that said 'we don't make site visits for a quote' effectively ruled themselves out of contention. We also asked each company to provide referees from the strata schemes they currently manage – with at least one being a similar age and/or size to ours. That process took a couple of months. We chose a company that purely deals in strata management (ie not real estate) and is a member of ISTM.

Since our old strata managers refused to reduce the 3 month notice period, I negotiated with the new strata manager to provide 2 months service for free (1 company offered 3 months, but was ruled out for other reasons).

Then, the EGM. It was the best attended General Meeting I've attended in our strata scheme. This was partly because we wrote to or emailed all owners – directly, not via the strata manager – letting them know what we were doing. Then, over the 2 days before the meeting I phoned, emailed, text messaged anyone who hadn't already told me they were attending.

The result: 18 out of 24 units represented at the EGM – either in person or by proxy – and a unanimous decision to change. The meeting took less than an hour, then we spent another hour having a little party – informally meeting the new strata manager and giving owners a chance to meet one another.

My main point in telling you all this is to say: it's worth doing, but just remember that it takes work. And, once you change, there will still be work to do to ensure the transition runs smoothly – especially if your old strata manager was not very good.

Cheers!

Dear all who may help us.

We live in a 6 units block, and 5 owners. We were in a process of changing strata. However when 4 of the owners are still waiting to see the agreement. Suddenly, the new agent told us the agreement was signed and affixed and it's never been mentioned on the minutes of any GM. We so then asked the agent for a copy of the agreement. And found out only the new agent and the one owner who owns the two lots  (he's also the secretary of committee) has signed the agreement. The worse thing is, there's no fixed term period stated on the agreement, it only states that termination can only be applied by writing notice of 36 months in advance. Isn't it very unfair? Who would sign something like that? Does it mean if the body corporate doesn't give 36 months notice, the agreement will be valid forever?! There must be something going on between the owner who sign the paper and the agent, because the owner who signed the agreement owns the only commercial lots within our strata plan, all others are residential lots.

Shouldn't the agreement be signed by two of the owners before being affixed the common seal STRATA SCHEMES MANAGEMENT ACT 1996 – SECT 238? Please help, if the agreement is valid, we will be in nightmare. What should we do?! 

BTW, me and another owner are also the committee members. There're total 3 CM. 

I'm no expert, ilovebbg, but I'd say it's time to complain to Fair Trading or the Tribunal. There are sure to be others on this forum who will offer more specific advice.

Also, what's your new strata manager doing about this problem?