Short answer
A strata management agreement is the contract between the owners corporation and the managing agent. It should set out the services and delegated functions, the fees (base fee plus any additional charges and disbursements), the term, and how it can be ended. In NSW the term is capped by law: the appointment expires at 12 months if the agent is appointed at the first annual general meeting, or 3 years in any other case.
What the agreement should cover
- Services and delegated functions — exactly which owners-corporation functions the agent is authorised to carry out.
- Fees — the base management fee, plus a clear list of additional charges and disbursements (no open-ended “extras”).
- Term — the length of the appointment, within the legal cap.
- Termination and notice — how either side can end it, and the notice required.
- Reporting and records — what the agent reports to the committee, and access to the scheme’s records.
The legal term cap (NSW)
Under the Strata Schemes Management Act 2015 (NSW), a strata managing agent’s appointment expires at 12 months if made at the first AGM, or 3 years otherwise. The strata committee can extend an expiring appointment only for short successive periods (up to three months, and not past the next AGM), and the agent must give the owners corporation written notice that the term is ending — generally between three and six months beforehand. An agreement that tries to run longer than the cap can be invalid.
Read it before you sign
The agreement governs the whole relationship — including how easily you can leave. Understand the fees and the exit terms before appointing. And remember it’s not the only path: a self-managed scheme has no management fee and no multi-year agent contract — Straita does the work and the committee just approves the decisions.
Primary sources
- Strata Schemes Management Act 2015 (NSW) — term of appointment and the agency agreement (s 50).
- NSW Government — Strata schemes (Fair Trading) — managing agent agreements and disclosure.