Strata Scheme Management Agency Agreement (03.09.09)

BLACK = Old Item/Clause | RED = New Item/Clause | BLUE = Comments About Change (Not Part of Form) | STRIKEOUT = Wording Deleted

Item 2

Company Name: …………………………….………………………………………..

Trading As: …………………………………………….…………………………

Item 4

This Agreement is effective from .............................. and

__	can be terminated by either party at anytime providing without prejudice ensuring that not less than ............... days written notice is given
__	is for a fixed term of ................. which term will continue, unless terminated on expiration, on a month-to-month basis after the expiry of the fixed term and is terminable by not less than 90 days written notice by either party. on or after the expiry of the fixed term.
__	ends at the close of the next annual general meeting of the Principal

Termination will be without prejudice to the rights of either party.

Item 5

5.1 The Principal authorises and appoints delegates to the Agent, as Managing Agent, to exercise all the functions of:

(1)	__	The Chairperson, Secretary and Treasurer
	__	The Executive Committee
	__	The Owners Corporation (except as excluded by Section 28.3 of the Strata Schemes Management Act 1996.)

5.2 The strata managing agent is authorised and appointed to exercise the functions of the chairperson, secretary and treasurer or executive committee of the owners corporation specified below (please indicate by ticking):

(2)	__	The functions shall be limited to those set out hereunder:
(a)	Functions of the Chairperson of an owners corporation
	__	Chair the meetings of the executive committee.
(b)	Functions of the Secretary of an Owner’s Corporation (s22):
	__	Prepare, and distribute and move confirmation of minutes of meetings
	__	Give Serving notices required under the Act to comply with a by-law.
	__	Maintain strata roll Holding documents and maintaining records relating to the scheme (for example, the strata roll, notices, and minutes of meetings).
	__	Answer communication addressed to Owner’s Corporation
	__	Convene meetings of the Executive Committee
	__	Attend to matters of an administrative or secretarial nature in connection with the exercise, by the Owner’s Corporation or the Executive Committee, of its functions.
	__	Enable inspection of documents (s108)
	__	Arrange & attend building inspections and prepare reports.
	__	Arrange and undertake administrative duties in relation to annual general meeting and any other general meetings.
	__	Attend to matters of this nature
(c)	Functions of the Treasurer of an Owner’s Corporation (s23)
	__	To notify owners of any contributions levied in accordance with this Act.
	__	To receive, acknowledge, bank and account for any money paid to the Owner’s Corporation.
	__	To prepare any certificate applied for under Division 4, Chapter 3, Part 5 of the Act.
	__	To keep the accounting records and prepare the financial statements. Undertake the financial management of funds and books of account (including the BAS statements).
(d)	Owners Corporation Management Areas (s61):
	__	Management, control, maintenance and repairs of common property to a Maximum Pre-approved Maintenance Expenditure not greater than ........................................................................... Effecting repairs to and maintaining common property or engaging appropriately qualified tradespersons to do so and limitations on expenditure that may be incurred by the Agent without obtaining the Principal’s approval.
	__	Manage finances of the strata scheme (Chapter 3, Part 3 of the Act).
	__	Take out, maintain & renew insurance of the strata scheme (Chapter 3, Part 4 of the Act).
	__	Keep accounts and records for the strata scheme (Chapter 3, Part 5 of the Act)
	__	Enter into authorised agreements for provision of amenities (s 111) Other functions in Chapter 3, Part 6 of the Act.
(e)	Additional Management Schedule
	__	To submit claims in relation to insurance
	__	To facilitate maintenance and repairs in accordance with Chapter 3, Part 2 of the Act.
	__	Collect contributions and other monies due and payable to the Principal. and pay accounts and outgoings and to disburse monies in accordance with the Act and Item (6) of this Agreement.
	__	Pay accounts and outgoings and to disburse monies in accordance with the Act.
	__	Deduct from monies received, Fees set out in Item (6)
	__	Provide so far as is reasonably necessary general advice and assistance to the Owner’s Corporation and Committee members. and to implement the decisions of the Owners Corporation and its Committee.
	__	Carry out reasonable direction of the Owner’s Corporation and its Committee
	__	Maintain and affix common seal in accordance with authority delegated by the Principal. Keep in its possession and exercise the use of the Common Seal for functions appointed to the Agent under this Agreement.
	__	Attend the annual general meeting and one other general meetings per year.
	__	Prepare and distribute (if applicable) the statutory budgets (subject only to advice from suitably qualified personnel obtained at the expense of the Owner’s Corporation).
	__	Represent the Principal in any tribunal or court proceedings in respect of the Strata Scheme tenancy of the Property.

(3) Other authorisations/limitations

..........................................................................................................................

Item 6

The Principal will pay the Agent fees and disbursements as set out below, within …………… days of the Statement being issued.

(a) Management Fee is payable last day of each quarter/month and is ……………………

(b) Authorised Agent’s expenditure:

Fees payable to Agent for Services and Expenses: [Enter details of Fees]

Description of Fees & Expenses	Fee (GST Inclusive)	Due and Payable
Management Fee
Preparation fee for any application to the registrar (hourly rate)
Minimum attendance fee for any adjudication, court or Strata Schemes Board matter
The preparation and lodgment of insurance claims (hourly rate)
Attending non-specified meetings (per meeting)
For the Preparation and supply of information (S108) and certificates under ss108 & 109 of the Act.
Overtime for any Preparation and lodgment of any tax or other returns (hourly rate)
For All out of pocket expenses incurred when executing the authorised functions (e.g. phone & fax calls, stamp duty, printing, postage, etc) (at cost)
Answering requests on title, Attending to title requisitions, preparation of statutory declarations, certificates or affidavits.(To be paid by requesting party) (hourly rate)
Maximum fee for preparation and arrangement of repairs and/or renovations
Audit and accountancy fee (hourly rate)

Item 7

The Agent shall be entitled to retain Rebates, Discounts and/or Fees commissions, rebates and/or discounts as disclosed below:

Source and details of Rebates, Discounts and Fees	Estimated Amount

Item 8

8.1 Insurance (List all insurance policies for Property)

		To Pay	Insurer/Detail	Policy Number	Expiry
(1)	……………………..	__	……………………………………	……………..	…/…./..
(2)	……………………..	__	……………………………………	……………..	…/…./..
(3)	……………………..	__	……………………………………	……………..	…/…./..
(4)	……………………..	__	……………………………………	……………..	…/…./..
(5)	……………………..	__	……………………………………	……………..	…/…./..
(6)	……………………..	__	……………………………………	……………..	…/…./..

8.2	Caretaking/Maintenance
(1)	Gardening	__	………………………………………………………………
(2)	Pool	__	………………………………………………………………
(3)	Pest	__	………………………………………………………………
(4)	Cleaner	__	………………………………………………………………
(5)	Repairs & Maintenance	__	………………………………………………………………
(6)	Other:………………	__	………………………………………………………………

8.3	Rates/Utilities
(1)	Council	__	………………………………………………………………
(2)	Electricity	__	………………………………………………………………
(3)	Strata Levies	__	………………………………………………………………
(3)	Lighting and/or Heating	__	………………………………………………………………
(4)	Water and/or Sewerage	__	………………………………………………………………
(5)	Other: ………………….	__	………………………………………………………………

8.4	Strata Levies
(1)	…………………………	__	………………………………………………………………
(2)	…………………………	__	………………………………………………………………
(3)	…………………………	__	………………………………………………………………
8.5	Repairs and Maintenance maximum expenditure on any one item: ………….…. Incl. GST)
8.5	Additional Payments (incl. GST): ………………………………………………………………………………............................

Item 10

Electrical Repairs:	……….…………………………………	Phone:	(……)……………...
Plumbing Repairs:	……….…………………………………	Phone:	(……)……………...
Building Repairs:	……….…………………………………	Phone:	(……)……………...
Other:	……….…………………………………	Phone:	(……)……………...

Item 13

PS&BA Act Section 55 (1) (c) – a copy of this Agreement signed by the Agent must be served on the Principal/Owner's Corporation within 48 hours after signing by the Principal/Owner’s Corporation.

Note: Parties are to ensure all Items in the Item Schedule are completed before signing. If Items are not applicable, mark ‘N/A’.

Clause 1

1.1	In this Agreement the following terms mean:
	(1)	Act: the Strata Schemes Management Act 1996 as amended.
	(2)	Agreement: this Strata Scheme Management Agency Agreement (Item Schedule and Terms of Agreement and any additional schedules that may be attached).
	(3)	GST: where used in this Agreement, has the meaning used in A New Tax System (Goods and Services Tax) Act 1999 and “GST” includes any applicable rulings issued by the Commissioner of Taxation.
	(4)	Item: an Item in the Item Schedule forming part of this Agreement
	(5)	Management Fee: monies paid to the Agent as detailed in Item (6) for carrying out services listed in Item (5).
	(6)	Material Fact: A Material Fact has, where used in this Agreement, the meaning given to it by Section 52 of the PSBAA.
	(7)	Property: the land and improvements thereon the subject of this Agreement (as described in Item 3).
	(8)	PSBAA: the Property, Stock & Business Agent’s Act 2002.
1.2	Other words and phrases not defined in this Agreement take on those meanings given to them in the Act.

Clause 2

By signing this Agreement the Principal(s) warrants and confirms:

(1)	it is the owner of the Property
	and has full authority to enter into this Agreement
(2)	it has read this Agreement
(3)	it has authority, by resolution of the Owner’s Corporation, to enter into this Agreement

Clause 3

The Agent warrants it is a licensed Strata Managing Agent under the PSBAA Property, Stock and Business Agents Act 1941and as such will perform all its requirements under this Agreement, and notify the Principal immediately if the license is suspended or cancelled.

Clause 4

4.1	In consideration of and in accordance with the terms of this Agreement, the Principal appoints the Agent and its permitted Assigns, and the Agent agrees to act as the Strata Managing Agent for the Strata Scheme. Authority vested in the Agent by this Agreement shall be deemed to be vested in the Agent’s authorised employees.
4.2	The Agent may direct its employees to exercise necessary tasks under this Agreement.

Clause 5

5.1	The Agent is authorised and directed, by the Principal, to disclose all relevant and material facts in relation to the Property.
5.2	The Agent must, in compliance with Section 52 of the PSBAA, not make any promise that is false, misleading or deceptive or conceal any material facts.
5.3	(1)	The Principal authorises the Agent to initiate and pay for maintenance and repairs and maintenance on with respect to property comprising the Strata Scheme, enlisting qualified tradespersons where required without first seeking permission from the Principal up to the Maximum Pre-approved Maintenance Expenditure stated in Item (5(2)(d)) of the Item Schedule. The Agent will obtain the Principal’s written approval before ordering maintenance and repairs or maintenance if the cost of repairs or maintenance is more than the Maximum Pre-approved Maintenance Expenditure, amount so authorised provided except in emergency circumstances, the Agent is authorised to immediately initiate repairs which may be in excess of the authorised amount.
	(2)	All maintenance and repairs will (where appropriate applicable) be ordered from those persons detailed in Item (10) of the Item Schedule. The Agent will ensure compliance with all existing property maintenance contracts as set out in Item (9).
5.4	The Agent will take reasonable steps to ensure goods and services obtained for the Principal are at competitive prices.
5.5	The Agent is authorised to deduct from monies received by the Agent on behalf of the Principal all Feescommissions and other authorised outlays owing to, or incurred or paid by the Agent in association with this Agreement, including those paymentsFees, Charges and payments authorised in Items (6) and (8) respectively. of the Item Schedule. The Agent will ensure compliance with all existing property maintenance contracts as set out in Item (9).
5.6	(1)	The Agent must, by providing financial statements (Item 10), account to the Principal as set out in Item (10)) to the Principal with respect to all monies collected, received, paid or used by the Agent in carrying out the Agent’s obligations under this Agreement.
	(2)	The Agent will issue tax invoices when required by the Principal in respect of all monies owing by the Principal to the Agent.
5.7	The Agent will maintain a trust account in accordance with Section 86 of the Property, Stock and Business Agents Act 1941, PSBAA and will provide information on request in accordance with Chapter 2, Division 3 of the Act.

Clause 6

6.1	The Principal confirms having, at the time of entering into this Agreement, disclosed correct details to the Agent of all relevant and Material Facts relating to the Strata Scheme.
6.2	The Principal will at all times during the currency of this Agreement keep the Agent advised of and disclose to the Agent in writing details of all relevant and Material Facts and changes thereto about the Strata Scheme.
6.3	The Principal must obtain and maintain the insurance policies listed in Item (8.1) of the Item Schedule, and the Principal must upon request, provide annual certificates annually for each insurance policy confirming the currency of such policies.
6.4	The Principal must have legal/public liability insurance and be covered for a minimum of 10 million dollars, in respect of the Strata Scheme. Such policy must be maintained for the term of this Agreement and the Principal must upon request, provide annual a certificate annually confirming the currency of such policy.
6.5	The Principal must meet the requirements of all relevant acts, legislation, by-laws, rules and regulations local, state and federal including with respect to occupational health and safety.
6.6	The Principal retain a signed copy of this Agreement.
6.6	The Principal will comply, in all respects, with the requirements of the Strata Scheme.
6.7	The Principal confirms that it is the responsibility of the Principal (Owner’s Corporation) to maintain and repair the Strata Scheme property and where the Agent is required to carry out maintenance and/or repairs (Item 5(2)(d)) must direct the Agent in relation thereto.
6.8	The Principal will comply with written requests made by the Agent in relation to compliance with the Occupational Health and Safety Act 2000, given with respect to matters covered by this Agreement.

Clause 7

The Principal indemnifies the Agent, its officers and employees, from and against all actions, claims, demands, losses, costs, damages and expenses arising out of or in respect of this Agreement (except in relation to breaches arising due to the application of under Section 30 of the Act Strata schemes Management Act 1996) in respect of from:

(a)	the Principal’s failure to comply with this Agreement; or
(b)	the Principal’s failure to give the Agent prompt and appropriate authority or instruction, or sufficient funds to carry out an instruction or authority; or
(c)	the Agent acting in the capacity on behalf of the Principal under this Agreement.

Clause 8

Each party acknowledges having has received a signed copy of this document and understands such document or has had the opportunity to obtain professional advice with respect to the Agreement and each party acknowledges it is bound by the terms of this Agreement.

Clause 9

9.1	The Agent shall be entitled to Fees for services and remunerationreimbursement for Expenses (including any taxes or deductions debited by financial institutions against the Agent’s account and attributable to the affairs of the Principal) in the amounts set out in Items (6), (7) and (8) respectively, for the execution of services referred to in Item (5) of this Agreement.
9.2	The Principal acknowledges before entering into this Agreement the Agent has provided a printed guide to the Agent’s fees and commissions and to the expenses for which the Agent will require to be reimbursed.
9.2	Unless otherwise specified in Item (6), the Fees will be payable upon provision by the Agent of a tax invoice or statement of account.
9.3	The Management Fee and any other monies remuneration payable under this Agreement may be adjusted revised at any time by agreement between the two parties. But otherwise will be adjusted reviewed in accordance with Clause 9.4.
9.4	Any Fees and disbursements depicted in this Agreement will be reviewed on annually on the same date as the commencement date of this Agreement by agreement between the parties, if an agreement cannot be reached, adjusted using the following formula;
	FD x C2 C1 FD – the management, additional fees, and disbursements payable for the term immediately preceding the relevant review date. C1 – the Commonwealth Statisticians Consumer Price Index (all Groups) for the city of Sydney for the quarter immediately preceding the commencement of the year preceding the relevant Review Date. C2 – the Commonwealth Statisticians Consumer Price Index (all Groups) for the city of Sydney for the quarter immediately preceding the relevant Review Date.
9.4	Where this Agreement is for a period of more than 12 calendar months the Agent’s Fees for letting and management services will be adjusted on each anniversary of the commencement date (Review Date) mentioned in Item (4) by agreement between the parties or failing agreement the greater of:
	(1)	Rental adjusted using the following formula: F= A x B C Where: F represents the CPI adjusted Agent’s Fee. A the Agent’s Fee payable immediately prior to the Review Date B is the CPI for the quarter immediately prior to the relevant Review Date. C is the CPI published for the quarter ending one year prior to the quarter in B; or
	(2)	an amount equal to a 5% increase on the immediately preceding period’s Agent’s Fees.
	whichever is the greater of 9.4(2) or 9.4(3) but at no time less than the current Fee.

Clause 12

The Agent makes no representation as to being a financial or investment advisor and any comments made by the Agent are not to be taken as giving financial or investment advice.

Clause 13

Any Special Conditions to this Agreement shall form part of this Agreement. Should there be any inconsistency between the terms of this Agreement and a Special Condition, the Special Condition shall apply.