Strata managing agents

The owners corporation can hire a licensed strata managing agent to help manage the scheme. An agency agreement will outline the agent’s responsibilities that the owners corporation sets out.

Appointing a managing agent

A strata managing agent is appointed by the owners corporation from a formal vote.

If a strata managing agent is appointed:

  • before the first annual general meeting (AGM), then their appointment ends at the first AGM, or
  • during the first AGM, then they are appointed for up to 12 months.

Future appointments

Any subsequent appointment can only be for a maximum of three years. After three years, the parties must negotiate and enter into a new agreement.

The developer of a strata scheme, or a person linked to the developer, cannot be appointed until 10 years has passed from the strata plan registration.

Extending a strata managing agent contract

The strata committee can extend a strata managing agent’s appointment for up to three months as long as it doesn’t pass the next AGM. A strata managing agent’s three-year term automatically includes an option to extend it up to three months afterwards. This option applies:

  • if the owners corporation decided not to reappoint the agent and does not extend their appointment
  • the agent gives the owners corporation written notice of taking up this option.

If the strata committee extends the appointment, and then decides not to re-appoint the agent, they must give the strata managing agent at least one month's notice.

The agent’s reporting duties

A strata managing agent must:

  • write to the owners corporation about their duties and how they are doing them
  • give a copy of the records kept for the past 12 months to the owners corporation at least once each year
  • give written details of trust accounts and financial transactions when the owners corporation asks them to.

A strata managing agent cannot:

  • delegate their powers, authorities, duties or functions to others
  • set levies
  • make a decision on a restricted matter.

Disclosure requirements

Before being appointed, strata managing agents must disclose to the owners corporation:

  • if they are connected with the original owner
  • any direct or indirect monetary interest in the strata scheme.

A strata managing agent cannot request or accept a gift or other benefit valued at more than $60, unless approved by the owners corporation. They can accept reasonable meals, refreshments and small gifts in appreciation of their services. Strata managing agents risk a penalty of up to $2,200 if they breach these requirements.

At the AGM, strata managing agents must also report whether any commissions or training services have been:

  • provided, or paid for, in the past 12 months, or
  • likely to be provided or paid for in the coming 12 month period.

These reporting requirements do not apply to training that is provided by:

  • the strata managing agent's employer, or
  • third parties, such as legal practitioners, direct to strata managing agents.

Visit the disclosure requirements page for more information.

Ending a strata managing agent agreement

A managing agent can only be dismissed, or have a delegation changed, at a general meeting by a majority vote. Termination conditions, including payments, are detailed in the agent's contract. Written notice of the decision must be given to the agent.

Dispute with a strata managing agent

Only the owners corporation can apply to the Tribunal to resolve a dispute with a managing agent over an agreement. The Tribunal can:

  • terminate an agreement
  • require payment of compensation by a party to the agreement
  • change, confirm or declare invalid the terms and conditions of the agreement
  • dismiss the application.

The Tribunal can terminate an agreement due to:

  • the managing agent's unsatisfactory performance under the agreement
  • unfairness of charges paid
  • a strata managing agent not disclosing commissions or training services, or disclosing these in good faith
  • the agreement being harsh, oppressive, unconscionable or unreasonable
  • the managing agent not disclosing an interest, which led to them being appointed.

Visit the Strata and Community disputes page for more information.

Complaint about conduct

If you have a complaint or concern about an agent, you can lodge a complaint.

Compulsory appointment of a strata managing agent

The Tribunal can appoint a strata managing agent if the owners corporation:

  • is not doing its work
  • has not complied with an order
  • has failed to perform one or more of its duties, or
  • owes a judgement debt.

The Tribunal can appoint a nominated person as a strata managing agent to carry out:

  • all the functions of an owners corporation
  • all the functions of the strata committee and/or the Chairperson, Secretary or Treasurer
  • only some of those functions.

Provision of contract

A copy of the strata managing agent agreement must be available to the owners corporation at all times.

Proxy vote restrictions

A strata managing agent cannot use a proxy vote:

  • for the purpose of extending the term of their appointment
  • to increase their remuneration
  • in a decision about legal proceedings involving the proxy.
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