Body Corporate Agreements - BCsystems | Strata … 1. Body Corporate Management Agreements -...
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Body Corporate
Agreements Body Corporate Management and Caretaking &
Letting Agreements
Kerri Anthon
Contents:
1. Body Corporate Management Agreements - Entering into a Body Corporate Management
Agreement
- Role of the Body Corporate Manager
- Duties of a Body Corporate Manager
- Breakdown of a Body Corporate Management Agreement
2. Caretaking and Letting Agreements - Entering into a Caretaking and Letting Agreement
- Role of the Caretaker and Letting Agent
- Duties of a Caretaker and Letting Agent
- Breakdown of a Caretaking Agreement
1. Body Corporate
Management Agreements
How does a Body Corporate enter
into a Management Agreement?
• Must be at a General Meeting (usually the Annual General Meeting)
• Motion and Attachments to consider the Agreement must:
- Include the start and end date
- State the length of the Agreement (maximum of 3 years)
- State the amount per lot
• Ordinary Resolution
• No proxies can be used
• Agreement must be included with the Notice of Meeting
Role of the Body Corporate Manager
WE ARE NOT the Body Corporate
WE DO NOT make the decisions
WE DO NOT set the levies
The levies DO NOT go into our pockets
WE DO NOT employ the managers, the contractors or anyone else engaged by the Body Corporate
Role of the Body Corporate Manager
The Legislation definition of a Body Corporate Manager is a person who:
“is engaged by the body corporate (other than as an employee of the body corporate) to supply administrative services to the body corporate, whether or not the person is also engaged to carry out the functions of a committee, and the executive members of a committee for a body corporate.”
In layman terms – we are paid secretaries of the Body Corporate WHO are directed by the COMMITTEE to carry out services.
Duties of a Body Corporate Manager
As Body Corporate Manager we perform, but are not limited to, the following duties: • Update owners details, including roll information
• Maintain all books and records
• Address inwards and outwards correspondence
• Prepare and issue agendas and minutes for Committee Meetings
• Prepare and issue agendas and minutes for General Meetings
• Maintain Financial Statements
• Administer Bank and Term Deposit Accounts
• Make payments to creditors
• Prepare and lodge BAS Statements and Tax Returns
• Prepare Administrative and Sinking Fund Budgets
• Issue levies
• Obtain quotations for Committee and arrange renewal of insurance
• Process insurance claims
• Attend meetings
• Maintain compliance with Body Corporate and Community Management Act 1997 and subordinate regulations
Example of Body Corporate
Management Agreement
Example of Body Corporate
Management Agreement
2. Caretaking & Letting
Agreements
How does a Body Corporate enter
into a Caretaking and Letting
Agreement?
• Must be at a General Meeting
• Motion and Attachments to consider the Agreement must:
- Include the start and end date
- State the length of the Agreement (10 - 25 years depending on module)
- State any option of extensions or renewals
• Ordinary Resolution
• No proxies can be used
• Agreement must be included with the Notice of Meeting
• Returning Officer required
Role of the Caretaker & Letting Agent
THEY ARE NOT the local police-force
THEY CANNOT enforce the by-laws
THEY CANNOT make Body Corporate decisions
THEY CANNOT spend Body Corporate funds without authorisation
Like Body Corporate Managers - THEY ARE ALSO not the Body Corporate
Role of the Caretaker & Letting Agent
The Legislation definition of a Caretaker (Service Contractor) is a person who:
“is engaged by the body corporate for a term of at least 1 year to supply services (other than administrative services) to the body corporate for the benefit of the common property or lots included in the scheme.”
The Legislation definition of a Letting Agent is a person who: “is authorised by the body corporate to conduct a letting a agent business for
the scheme.”
Example of Caretaking Agreement
• Definitions
• Appointment Dates – start/end and any options or extensions
• Remuneration – $fee/lot, paid monthly in advance or arrears and includes calculation for annual increase
• Conditions – leave, nominees, expenditure
• Managers Obligations – licences, permits etc
• Obligations of the Body Corporate – includes B/C representative, plans, equipment
All Agreements are different depending on who prepared them initially but basically they include:
Example of Caretaking Agreement
cont.
• Termination – Breaches of Agreement
• Duties
- Daily, Weekly, Monthly etc
- Very Generally Worded
- Difficulties between interpretation of Duties
Additional Fees
• Duties outside of Agreement
• Hourly Rate
• Additional Quotes
• Type of Work
• Experience Required
Letting Agreements
• Similar Agreement as Care-taking
• Dates and terms run parallel
• No remuneration from Body Corporate
• Disputes
Kerri Anthon www.bcsystems.com.au
Summary
1. Difference between a
- Body Corporate Management Agreement and
- Caretaking and Letting Agreement
2. Difference between the two Roles
3. Code Of Conduct
4. COMMUNICATION
