What’s Really in Your Strata Management Agreement?

Most owners corporations focus on the headline management fee when appointing a strata managing agent. But the agreement itself — what the agent is actually authorised to do, what additional fees and commissions they can receive, and what happens when the relationship breaks down — often receives far less scrutiny than it deserves.

Under the Strata Schemes Management Act 2015 (NSW) and the Property and Stock Agents Act 2002 (NSW), strata managing agents are required to execute a written agency agreement that complies with specific legislative requirements, including term limits, fee disclosure, and termination provisions. Agents are also obliged to disclose in writing any commissions or other benefits received from third parties in connection with the strata scheme before those benefits are received — a requirement that was strengthened further by the Strata Managing Agents Legislation Amendment Act 2024 (NSW), which introduced tighter disclosure obligations and higher penalties for non-compliance.

The practical reality is that what an agent is authorised to do under an agreement, and what lot owners assume they are authorised to do, are not always the same thing — and the gap between those two positions can give rise to costly disputes.

In this episode of the Strata Law Podcast, Sachs Gerace Lawyers’ Erin Keogh walks through what owners corporations need to know before entering into a strata management agreement — from authorisation and fees to appointment terms, renewal clauses, and the options available when the relationship isn’t working as expected.

Hit play below to listen.

Have questions about your strata management agreement or a dispute with your managing agent? The team at Sachs Gerace Lawyers can help. Contact us today