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/Factsheet_print/Property_agents_and_managers/Agency_responsibilities/Agency_agreements/_Management_of_strata_or_community_title_land.pdf
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Standard fact sheet.
/Factsheet_largeprint/Property_agents_and_managers/Agency_responsibilities/Agency_agreements/_Management_of_strata_or_community_title_land.pdf
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Large print fact sheet.

Management of strata or community title land 

Agency agreement terms

1. Identification of property 

The agreement must state the address of the property to which the agreement applies or must contain a description of the property which allows the property to be clearly identified.

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2. Names of parties to agreement 

The agreement must specify the names of each of the parties to the agreement, including the corporation name of the managing agent and any trading name.

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3. Information identifying the parties 

The agreement must state the address of the strata or community scheme on behalf of whom the agent is acting, the agent’s’s licence number and any business name under which the agent conducts business.

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4. Authority of the person on behalf of whom the agent will act to enter into agreement 

The agreement must contain a statement that the scheme on behalf of whom the agent is acting warrants that the person has authority to enter into the agreement.

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5. Authorisation for agent to act on behalf of person 

The agreement must include a term containing details of the extent of the agent’s authority to act as agent on behalf of the scheme they are providing services to under the agreement.

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6. Period of duration of the agreement 

The agreement must contain a term indicating the period for which the agreement remains in force. This period must be no more than 12 months following the date of appointment if the agent is appointed at the first annual general meeting, or in any other case, 3 years following the date appointment.

If the agreement is for a period of 3 years,  the strata managing agent must have the to extend the term of appointment for a maximum period of 3 months after the end of the 3 year term, if the owners corporation decides not to reappoint the agent and does not extend the term of appointment. It must require the agent to give the owners corporation written notice of the exercise of the option. However, the agent is not entitled to exercise the option 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 3 year term.

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7. Termination of the agreement 

If the agreement can be terminated by a party to the agreement, the agreement must state how and when it can be terminated.

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8. Reimbursement of agent 

If the agent is to be entitled to any sum or reimbursement for expenses or charges incurred by the licensee in connection with services provided under the agency agreement, the agreement must include a term that:

  • states that the agent is so entitled
  • describes those services, and
  • specifies the amount that the agent is so entitled to and when it is payable.

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9. Remuneration 

The agreement must include a term stating:

  • the circumstances in which the agent is entitled to remuneration (by way of commission or otherwise) for services performed under the agreement
  • the amount of the remuneration or the way in which it is to be calculated, and
  • when the remuneration must be paid.

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10. Authorisation for the agent to undertake certain duties relating to management of strata or community title land 

The agreement must state whether the owners corporation or community scheme is delegating to the strata managing agent:

  • all of its functions, or
  • any one or more of its functions specified in the agreement, or
  • all of its functions except those specified in the agreement.

The agreement must include any written confirmation prepared for the purposes of clause 6 of the rules of conduct for strata and community managing agents, of the extent of the agent’s authority to undertake the following duties in connection with the exercise of the functions of a strata managing agent or community managing agent and any limitations on the agent’s authority to undertake those duties:

  • undertaking the financial management of funds and books of account
  • holding documents and maintaining records relating to the scheme (for example, the strata roll, notices and minutes of meetings)
  • arranging building inspections and reports
  • effecting repairs to and maintaining common property or engaging tradespersons to do so and limitations on expenditure that may be incurred by the agent without obtaining the approval of the person on behalf of whom the agent is acting
  • paying disbursements and expenses incurred in connection with the agent’s management of the scheme
  • arranging insurance cover for the scheme
  • serving notices to comply with a by-law
  • managing the capital works fund and the administrative fund
  • undertaking steps necessary to recover any money owing in relation to levies
  • representing the person on behalf of whom the agent is acting in tribunal or court proceedings
  • paying accounts in relation to the scheme (for example, accounts for water charges, council rates and maintenance)
  • arranging and undertaking administrative duties in relation to annual general meetings and any other general meetings.

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11. Effect of statutory appointment of managing agent 

The agreement must include a term or terms to the effect of:

  • The agent does not have and may not exercise any of the powers, authorities, duties or functions of the owners corporation, association or strata corporation that are conferred on another strata managing agent or managing agent appointed for the owners corporation, association or strata corporation for the time being under section 237 of the Strata Schemes Management Act 2015 or section 85 of the Community Land Management Act 1989.
  • The agency agreement is terminated on the appointment of a strata managing agent or managing agent under section 237 of the Strata Schemes Management Act 2015 or section 85 of the Community Land Management Act 1989 to exercise or perform all the functions of the owners corporation, association or strata corporation.
  • The agent is not entitled to any remuneration by way of commission or otherwise in respect of any period after termination of the agency agreement as referred to in paragraph (b).
  • The agent is not entitled to any payment (in the nature of a penalty or otherwise) by reason of the early termination of the agency agreement as referred to in paragraph (b).
  • Any term in an agency agreement with a strata manager which purports to indemnify the agent against any liability to pay a fine that arises under section 57 of the Strata Schemes Management Act 2015 (Breaches by strata managing agent), is prohibited.

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12. Renewal of agreement for fixed term 

If the agreement is for a fixed term, it must not contain a provision that operates (without the further agreement in writing of the person on behalf of whom the agent is acting) to renew the agreement for a subsequent fixed term of more than 3 months unless the agreement also provides for the person to be able to terminate the agreement (without penalty) by giving 3 months’ notice of termination at any time during that subsequent fixed term.

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13. Accounting to the person on behalf of whom the agent is acting in respect of money received 

The agreement must specify the manner in which and the frequency with which the agent is required to account to the person on behalf of whom the agent is acting in respect of money received by the agent on behalf of the person.

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14. Disclosure of rebates, discounts or commissions 

The agreement must include provision for the agent to identify the source and amount or estimated amount of all rebates, discounts or commissions the licensee will or may receive in respect of expenses payable by the client for the services to be provided by the agent.

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