Exit a Strata Agreement – Change Owners Corporation Manager

Want to exit a strata agreement but do not know where to start?

Here’s a quick and simple guide to exiting your strata management agreement and become a self-managing scheme. For each major Australian state refer to these websites:

If you live in a state or territory not specified here, feel free to contact us at info@ourbodycorp.com.au.

 

Exit a strata agreement in New South Wales

1. Check Your Current Strata Management Agreement

Check the exit details of your current contract to see what notice period you have to give to leave the agreement. The contract period is usually renewed at your AGM.

If you don't have a copy of this contract, any owner can request one from the current strata manager. If your manager can't supply a signed copy then there’s no agreement to terminate.

2. Quorum and Voting

Call an Extraordinary General Meeting (EGM). You need 25% of the owners to attend in person or by proxy. Proxies can be given to any owner attending the meeting. Click here for a copy of the NSW proxy form to send owners in advance.

There are two ways to convene an EGM:

  • By majority vote of the executive committee, or
  • If owners entitled to vote, and who together hold at least one-quarter of the total unit entitlements, give a written notice to the secretary asking for the meeting to be held.

Notice of an EGM must be given to each owner at least seven days before the meeting.

The motion/s need to be agreed upon by a majority of owners at the meeting - in person/proxy.

NSW law frowns upon adding new agenda items during a meeting. You must think of everything you wish to discuss and put it on the agenda in advance. Send this out 11 days (seven days plus postage) in advance to give all owners appropriate notice.

3. Removing A Manager

After successfully conducting a vote at an EGM to remove your current strata manager, follow the process for the removal or termination of the manager as outlined in the contract of appointment.

4. Changing Over

Once a manager’s appointment is terminated, the manager has 28 days to return all funds and records to the body corporate.

Open a bank account, deposit the cheque from your previous strata manager, obtain your papers from him/her and then you're good to go.

For more information on operating strata schemes in NSW, visit NSW Fair Trading. Click here for a copy of the helpful booklet Strata Law Overview NSW.

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Exiting your current strata management agreement in Queensland

1. Request Your Current Strata Management Agreement

Check if you have a contract with your body corporate manager. This agreement must be in writing and must not be for a term longer than 3 years.

Contact your body corporate manager and request a copy of the current signed contract. Set a deadline of five working days to receive the document. If nothing arrives, then assume there's no written agreement.

No contract: advise the body corporate manager that as there's no written agreement between the parties, you no longer require his/her services. Request that in accordance with Section 206 of the Body Corporate and Community Management Act 1997, all the body corporate’s property, records, documents and the body corporate seal be returned to you within 14 days.

Contract: if there is a signed agreement, find out when the agreement concludes, and any termination provisions. Our Body Corp can assist you in deciphering this contract if it's not clear. You need to terminate or appoint a strata manager at your Annual General Meeting.

2. Annual General Meeting (AGM)

Before the Annual General Meeting send out a notice about the meeting to your neighbours. You can obtain your neighbours' contact details from your strata manager. Some managers may try to avoid giving these details but it is your right to communicate to your neighbours. You particularly need email addresses.

Advise your neighbours that you will request the following items be added to the forthcoming AGM agenda:

a. Current Body Corporate Manager - status update (or alternatively "Non-renewal of Current Body Corporate Manager")

b. Motion to approve the engagement of Our Body Corp to assist owners self-manage the body corporate – By Ordinary Resolution
Make sure to also attach a copy of the Our Body Corp Terms and Conditions https://www.ourbodycorp.com.au/terms-use/ and a Proxy Form to give those who will not be present at the meeting a chance to vote. They can give their proxies to you.

Advise the existing strata manager to add these agenda items to the forthcoming AGM agenda.

3. Quorum

Ensure you have a quorum of voters at the AGM. That’s 25% of owners voting either in person or via proxy. Click here for a Proxy Form template you can use.

4. Resolution to Appoint Our Body Corp

Make sure you obtain agreement from the owners to appoint Our Body Corp. This has to occur via an Ordinary Resolution, which is when more owners say "yes" than "no".

5. Changing Over

Set up a bank account for your community. Unless you have a lot of money, we would recommend a 'no interest/no fee' bank account so you won’t have to complete tax returns for your body corporate.

One person can be the signatory but it’s good practice to have an authorisation process whereby no payment is made without agreement of another designated owner via email.

For more information on body corporate management in Queensland, contact The Office of the Commissioner for Body Corporate and Community Management.

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Exiting your current strata management agreement in South Australia

1. Check Your Current Strata Management Agreement

Check the exit details of your current contract to see what notice period you have to give to leave the agreement. The contract period is usually renewed at your AGM. If you don't have a copy of this contract, any owner can request one from the current strata manager.

2. Quorum and Voting

Call an Annual or Extraordinary General Meeting, which a quorum of unit holders must attend.

Before the meeting, issue an agenda requesting the change of strata management from your current strata manager to self-managed through Our Body Corp. Our team can guide you through this process and supply the necessary paperwork.

At least 50% of all unit holders must be represented at this AGM/EGM, either in person or by proxy. You will need a majority vote from unit holders via a show of hands for the motion to carry. If the vote is split, the chair person holds the casting vote.

If less than half the unit holders are represented, the meeting must be adjourned for at least seven days, but no more than 14 days. Written notice of another meeting must then be given to unit holders. If less than half of the unit holders are represented at the second meeting, those present are entitled to work as a quorum, meaning they can legally make decisions.

3. Removing A Manager

After successfully conducting a vote at a General Meeting to remove your current strata manager, follow the process for the removal or termination of the manager as outlined in the contract of appointment.

4. Changing Over

Once a manager’s appointment is terminated, the manager has 28 days to return all funds and records to the owners corporation.

Open a bank account, deposit the cheque from your previous strata manager, obtain your papers from him/her and then you're good to go.

6. Required Rules and Regulations To Comply With

At the very minimum, a self-managed strata corporation is required to:

  • Hold an AGM every 12-18 months, with minutes taken.
  • Obtain insurance.
  • Elect office bearers.

Contact the Our Body Corp team or Consumer and Business Services for more info on self-managed strata rules and regulations.

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Exiting your owners' corporation management agreement in Victoria

1. Check Your Current Owners’ Corporation Management Agreement

Ask your current owners’ corporation manager for a signed copy of your existing agreement. If your manager can't supply a signed copy then there isn't an agreement to terminate.

Here’s some more info on working with your owners’ corporation manager.

2. Call an EGM

Call an Extraordinary General Meeting (EGM) and issue an agenda requesting the change of owners’ corporation management from your current manager to self-managed through Our Body Corp. Our team can guide you through this process and supply the necessary paperwork.

If you don't have the other unit owners’ contact details, ask the owners’ corporation manager for these. The manager might not give them to you but s/he should, so push for these details.

3. Hold the Meeting, Obtain a Quorum, Vote

Hold the EGM and obtain a quorum of voters. That’s at least 50% of the total votes, or if 50% of total votes is not available then 50% of lot entitlements.

To remove an owners’ corporation manager, regardless of whether his/her contract has expired or not, conduct a vote at the EGM (alternatively you can hold a postal ballot beforehand) to remove the manager.

4. Vote for Self-Management with Our Body Corp

To be absolutely official you should then vote on self-managing your owners' corporation using Our Body Corp at the meeting. Victorian legislation stipulates owners can vote via a show of hands or print out ballot papers, cut them up and complete hard copies. Consumer Affairs have exact instructions here.

A majority of owners need to agree to the recommendation to self-manage. This will enable an "Ordinary Motion". If the voting is split evenly the chair has the casting vote.

5. Remove a Manager

After successfully voting to terminate the current manager’s contract, follow the process for removal as outlined in the contract of appointment.

Once a manager’s appointment is terminated, s/he has 28 days to return all funds and records to the owners’ corporation.

6. Changing Over

Then open your bank account, get a cheque from your out-going manager for your currently banked funds, obtain your papers and then you're good to go.

7. Committees

In Victoria owners’ corporations with fewer than 13 lots may elect a committee if they choose to, but it’s not mandatory.

If your owners’ corporation does not have a committee, the lot owners will vote on items needing actions. We’ve just added a great new tool to our program called the "Decision Maker", which is an online voting system. This avoids the need for face-to-face meetings.

For more information on owners' corporations in Victoria, contact Consumer Affairs Victoria.

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Exiting your current strata management agreement in Western Australia

1. Check Your Current Strata Management Agreement

Check the exit details of your current contract to see what notice period you have to give to leave the agreement. The contract period is usually renewed at your AGM.

If you don't have a copy of this contract, any owner can request one from the current strata manager. If your manager can't supply a signed copy then there’s no agreement to terminate.

2. Quorum and Voting

Call an Extraordinary General Meeting (EGM), giving owners no less than 14 days’ written notice. Be sure to describe the purpose of the meeting. You can obtain your neighbours' contact details from your strata manager. Some managers may try to avoid giving these details but it is your right to communicate to your neighbours.

Obtain a quorum by ensuring half of the owners entitled to vote are represented either in person or by proxy.

A resolution can be passed at an EGM by a simple majority vote. This can be decided by a show of hands unless a poll is demanded by any proprietor present in person or by proxy.

3. Removing A Manager

After successfully conducting a vote at an EGM to remove your current strata manager, follow the process for the removal or termination of the manager as outlined in the contract of appointment.

4. Changing Over

Once a manager’s appointment is terminated, the manager has 28 days to return all funds and records to the body corporate.

Open a bank account, deposit the cheque from your previous strata manager, obtain your papers from him/her and then you're good to go.

For more information, download the Landgate Guide to Strata Titles or contact Landgate directly.

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For more info on how to exit your current owners' corporation or body corporate management agreement, contact us at info@ourbodycorp.com.au.