New South Wales Consolidated Acts

STRATA SCHEMES MANAGEMENT ACT 1996 - SECT 40B

40B How is a caretaker appointed?

(1) A caretaker is required to be appointed by an instrument in writing (a "caretaker agreement") executed before or after the strata scheme commenced by the caretaker and:

(a) by the original owner, if executed before the strata scheme commenced, or

(b) under the authority of a resolution passed at a general meeting of the owners corporation of the strata scheme concerned, if executed after the strata scheme commenced.

(2) Unless it expires or otherwise ceases to have effect earlier, a caretaker agreement (including any additional term under any option to renew it) expires:

(a) at the conclusion of the first annual general meeting of the owners corporation, if the agreement was executed by the original owner, or

(b) when 10 years have expired after it commenced to authorise the caretaker to act under it, in any other case.

(3) The functions of a caretaker under a caretaker agreement may be transferred to another person only with the approval of the owners corporation. A person to whom those functions are transferred is taken to be appointed as a caretaker by the caretaker agreement.

(4) An owners corporation may terminate a caretaker agreement in accordance with its terms, and may approve a transfer of the functions of a caretaker, if authorised by a resolution at a general meeting of the owners corporation.