So you want to change your Owners Corporation Manager?
Your Owners Corporation Manager is not providing a reasonable quality of service.
Your Owners Corporation Manager is not providing any service at all (It happens).
You or your Executive Committee have been talking to another manager who you wish to engage.
Your Owners Corporation Manager is severing the relationship. (It happens also).
Are you currently in a management agreement with your current OC Manager? And is so, have you complied with the termination clause or notice period required under any agreement you currently have. The shock to many here is that most OC agreements have a notice clause and if you miss the notification period prior to any agreement ending you will find yourself with at least another years management by your current manager whether you like it or not.
If you did get your 28 days or longer 'notice of termination of agreement' in prior to your contract renewal date you may feel confident that this is all that is required and you can select your new manager after giving notice. But, and this is a rather large 'but', did you also check the minutes of your last Annual General Meeting – AGM, as you may find your committee resolved that they couldn't terminate the OC Manager except by a vote at an AGM. The the story goes like this – 1. So you resolved to terminate the current manager. 2. You gave the required notice. 3. You believe that you are complying with the agreement. 4. Yet a resolution at your last AGM shoots you down. Who reads those minutes properly now?
Many managers will let you go if the relationship is 'broken' and even notify you of any required notification date re termination notice required. Whilst many will also attempt to hold on to a management contract in the normal course of running a commercial business, whether that is no good for your OC or not. Large OC contracts are significant sums, enough said.
Over many years I have seen Owners Corporation Committees in Victoria become more experienced as more and more Victorians get a few miles under the belt from living in their OC enviroment and serving on their OC Committees. Expectations have risen for competent OC Management, new legislation in the form of the OC Act and Regulations is in place and I believe a few OC Managers are getting the message that they must provide a Good quality of management.
I am not picking on the managers alone here, as I am one. I have also experienced the very breaches of the OC Act by individual lot owners and committees, that the Act was set up to stamp out. So it is not always a one way street. I am aware that a committee may wish to change a manager, as the manager may not have given them the answer they wish to hear. In this regard self interest should have no place in the decision making process. In other words, burn through the managers until you get your way.
A frank talk where some negotiation could be entered into prior to accelerating matters. Mind you this is dependant on the state of the relationship.
A chat with a competent person to map out a way forward, which may include Legal advice.
This article is not intended as Legal Advice.
Link – Is Your Manager Registered in Victoria and Carrying Insurance?