I am currently in a situation whereby a Building Management company 3-year management agreement is coming to the end of the 3-year term. In their building management agreement, it has a clause in it whereby there is an automatic rollover for another 3 years and a term that states that Owners Corporation must provide 3 months notice otherwise there is an automatic rollover…. Is there any course of action that the Owners Corporation can take or any legislation in place that can block this from happening? – Jeremy, NSW

Q: I am currently in a situation whereby a Building Management company 3-year management agreement is coming to the end of the 3-year term. In their building management agreement, it has a clause in it whereby there is an automatic rollover for another 3 years and a term that states that Owners Corporation must provide 3 months notice otherwise there is an automatic rollover.

The owners corporation do not want to be forced into a 3-year rollover and wanted to know if the Building Management company is legally allowed to force the Owners Corporation to be stuck with them for another 3 years, just because we didn’t provide them with 3 months of notice?

And is there any course of action that the Owners Corporation can take or any legislation in place that can block this from happening?

 

A: It may be best to contact the building management company to learn more about their terms and conditions. You may be able to break the contract and exit out of management through them, although there may be fees involved.