New South Wales Consolidated Regulations New South Wales Consolidated Regulations(Clause 13)
The agreement must include any written confirmation prepared for the purposes of clause 6 of Schedule 6 of the extent of the agent’s authority to undertake the following duties in connection with the exercise of the functions of a strata managing agent or community managing agent and any limitations on the agent’s authority to undertake those duties:
(a) undertaking the financial management of funds and books of account,
(b) holding documents and maintaining records relating to the scheme (for example, the strata roll, notices, and minutes of meetings),
(c) arranging building inspections and reports,
(d) effecting repairs to and maintaining common property or engaging appropriately qualified tradespersons to do so and limitations on expenditure that may be incurred by the agent without obtaining the principal’s approval,
(e) paying disbursements and expenses incurred in connection with the agent’s management of the scheme,
(f) arranging insurance cover for the scheme,
(g) serving notices to comply with a by-law,
(h) managing the sinking fund and the administrative fund,
(i) undertaking steps necessary to recover any money owing in relation to levies,
(j) representing the owners corporation or association in tribunal or court proceedings,
(k) paying accounts in relation to the scheme (for example, accounts for water charges, council rates and maintenance),
(l) arranging and undertaking administrative duties in relation to annual general meeting and any other general meetings.
The agreement must include a term or terms to the effect of the following provisions:
(a) The agent does not have and may not exercise any of the powers, authorities, duties or functions of the owners corporation, association or strata corporation that are conferred on another strata managing agent or managing agent appointed for the owners corporation, association or strata corporation for the time being under section 162 of the Strata Schemes Management Act 1996 or section 85 of the Community Land Management Act 1989 .
(b) The agency agreement is terminated on the appointment of a strata managing agent or managing agent under section 162 of the Strata Schemes Management Act 1996 or section 85 of the Community Land Management Act 1989 to exercise or perform all the functions of the owners corporation, association or strata corporation.
(c) The agent is not entitled to any remuneration by way of commission or otherwise in respect of any period after termination of the agency agreement as referred to in paragraph (b).
(d) The agent is not entitled to any payment (in the nature of a penalty or otherwise) by reason of the early termination of the agency agreement as referred to in paragraph (b).
If the agreement is for a fixed term, it must not contain a provision that operates (without the further agreement in writing of the principal) to renew the agreement for a subsequent fixed term of more than 3 months unless the agreement also provides for the principal to be able to terminate the agreement (without penalty) by giving 3 months’ notice of termination at any time during that subsequent fixed term.
Note: This does not prevent the principal from agreeing in writing to the renewal of the agreement for a further fixed term.
The agreement must specify the manner in which and the frequency with which the agent is required to account to the principal in respect of money received by the agent on behalf of the principal.
An agency agreement under which the agent will exercise the functions of a strata managing agent must not contain a term that indemnifies the agent against any liability to pay a fine that arises by virtue of section 30 of the Strata Schemes Management Act 1996 .
Note: Section 30 of the Strata Schemes Management Act 1996 provides that if a strata managing agent has been delegated a duty by an owners corporation and a breach of the duty by the owners corporation would constitute an offence under a provision of the Strata Schemes Management Act 1996 , the agent is guilty of an offence under that provision (instead of the owners’ corporation) for any breach of the duty by the agent occurring while the delegation remains in force.