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.
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.
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.