Body Corporate Agreements - BCsystems | Strata … 1. Body Corporate Management Agreements - Entering into a Body Corporate Management Agreement - Role of the Body Corporate Manager

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