Is it hard to change Strata Managers?
The difficulty of changing strata managers can vary depending on several factors, including the specific rules and regulations governing strata communities, the terms of the current strata management contract, and the cooperation of the strata owners and committee.
Here are some general steps and considerations:
Review Strata Bylaws, meeting minutes and legislation:
Check the strata bylaws, past meeting minutes and legislation to understand the procedures for changing strata managers. There may be specific requirements or approval thresholds outlined in these documents.
Check the Current Contract:
Review the existing strata management contract. It may specify the conditions under which the contract can be terminated and the process for doing so. Pay attention to any notice periods or penalties for early termination.
Selecting a New Strata Manager:
The strata community will need to go through a process of selecting a new strata manager. This may involve the Strata Committee obtaining quotes, conducting interviews, and making a decision on which candidates to put forward for the Owners Corporation to consider.
Call a General Meeting:
In many cases, a general meeting may need to be called and a motion will need to be passed at a general meeting to terminate the existing strata manager and appoint a new one.
Obtain Quorum and Approval:
Achieving a quorum (minimum number of owners present or represented by proxy) is often necessary for decisions at general meetings. Additionally, a certain level of approval (usually a majority vote) may be required to make significant decisions such as changing strata managers.
Provide Notice:
Ensure that proper notice is given to all strata owners regarding the general meeting and the proposed change of strata managers.
Pursuant to Schedule 1 Clause 7(3) of the SSMA, different notice periods apply to different types of general meetings of the owners corporation. For annual general meetings, notice must be served on each lot owner at least 14 days before the general meeting. For general meetings other than an annual general meeting, notice of the general meeting of the owners corporation must be served on each owner at least 7 days before the general meeting.
Termination of Current Contract:
If the decision to change strata managers is approved, follow the procedures outlined in the existing contract for termination. Be mindful of any notice periods and associated costs.
Notify Relevant Parties:
Inform the outgoing strata manager, the owners, and other relevant parties about the change. Ensure that the new strata manager is provided with the necessary information and access to records.
It's important to note that the specific steps and requirements can vary widely, and legal advice may be necessary to ensure compliance with NSW strata laws and regulations. Additionally, cooperation and communication among strata owners are crucial for a smooth transition.