I am constantly amazed at how many people I come across that do not read or understand their Body Corporate documents including the Administration Agreement with their Body Corporate Manager.
Many years ago I signed a contract to sell a house and I did not read it. This cost me $5000.00. I learnt a valuable lesson and since then I have always read first, asked questions if I did not understand anything and then signed the document.
When I speak to potential clients, one of my first questions is “when does your current agreement expire”. The majority of people do not know. Most have not even seen the agreement which is normally attached to a General Meeting agenda.
When you are looking at renewing/changing your Body Corporate Management Agreement it is very important you go through it thoroughly. If you are considering changing Body Corporate Manager, make sure you are comparing apples with apples when it comes to agreements and fees/duties of the manager.
Some important points to consider:
- Term of the agreement
- 1 year
- 1 year that rolls over for a maximum period of 3 years unless a motion is submitted a the next AGM to terminate the contract
- 3 years
- Body Corporate Management Fee (Administration Fee) for agreed services
- Body Corporate Management Disbursement Fee (printing, postage & stationery) – this may be a fixed fee or a cost per item fee
- Additional Fees
- Termination of the Agreement
Once you have read the agreement, if there are items that you are not sure of, don’t hesitate to call the manager and ask questions. There is a lot to understand in the world of Body Corporate and no question is a silly question.
On Friday 24th October I will be attending a Body Corporate Expo that is being held at the Maroochy RSL. Entry is free and you are welcome to come along however you will need to register as per the attached invitation.
I look forward to seeing you there.