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ARTICLE · 19 APRIL 2022

NCAT terminates oppressive building management contract

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NCAT exercised its power to terminate a building management agreement (previously a caretaker agreement) for the first time.

AustraliaReal Estate and Construction
Marie-Louise Scarf
Marie-Louise Scarf
Lauren Boswell
Lauren Boswell
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Since the commencement of the Strata Schemes Management Amendment Act 2002 (NSW) (SSMA) in 2003, the NSW Civil and Administrative Tribunal (Tribunal) has had the power to terminate a building management agreement (formerly known as a caretaker agreement) in circumstances where:

  • the building manager has refused or failed to perform the agreement or has performed it unsatisfactorily
  • the charges payable by the owners corporation under the agreement are unfair
  • the agreement is otherwise harsh, oppressive, unconscionable or unreasonable.

In January 2022, the Tribunal exercised its power to terminate a building management agreement for the first time, in the case of The Owners- Strata Plan No. 64807 v Sunaust Properties Pty Ltd [2022] NSWCATD 20.

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