March 15, 2016 admin

CASE STUDY: BUILDING MANAGEMENT AGREEMENTS

The Challenge

The licensee has had experience with a large development of 4 Strata Schemes and a Community Association sitting over the top.

The Building Manager that had been on the site for 14 years had decided to retire and move closer to his family.

Furthermore, the Building Management Company wanted to exercise its right to assign its 5 agreements to a new company.

The challenge that arose was that all agreements had different expiry dates and there was no prior knowledge of the proposed new managers.

The Strategy

With all agreements being different, the licensee co-ordinated 5 Executive Committee’s to discuss important criteria for the new Building Manager and agreements.

The licensee nominated a pool of solicitors to give advice on the current agreements which did not comply with the current legislation and the registered by-laws.

The licensee co-ordinated numerous meetings of all 5 Executive Committee’s and the associated correspondence regarding the new agreements and their associated deeds and guarantees.

The licensee co-ordinated the costs associated to having the final meetings held to consider the appointment of the new Building Manager.

The Result

Meetings were held co-jointly between the 4 Strata Schemes and Community Association and the new Building Manager was appointed to all schemes and the community association for new 10 year agreements.

The agreements are the same for all Strata Schemes and the Community Association and considered to be a better agreement to that previous had.

It is noted that all Strata Schemes and the Community Association are pleased with the performance and proactive nature of the new Building Manager.