Owners Corporation Management Agreement

As a property owner, you may be familiar with the term “owners corporation management agreement.” But what exactly does it mean, and why is it important?

An owners corporation, also known as a strata or condominium, is a group of property owners who share ownership of common areas such as hallways, elevators, and recreational facilities. To manage and maintain these common areas, owners corporations often hire a professional management company.

The owners corporation management agreement outlines the responsibilities and duties of the management company and the owners corporation. It covers a wide range of topics, including financial management, maintenance and repairs, insurance, and dispute resolution.

One of the most important aspects of the management agreement is financial management. The management company is responsible for collecting levies and paying bills on behalf of the owners corporation. The agreement should specify how often financial reports will be provided and how the management company will handle any discrepancies or disputes.

Maintenance and repairs are another crucial component of the management agreement. The agreement should outline the management company`s responsibilities for routine maintenance, as well as emergency repairs. It should also include procedures for how repairs will be reported and resolved.

Insurance is also a critical consideration for owners corporations. The management agreement should specify what types of insurance the management company will provide, such as public liability and workers` compensation, and what types of coverage the owners corporation will need to obtain separately.

Finally, the management agreement should include provisions for dispute resolution. This can include procedures for handling disputes between owners or between owners and the management company. It should also detail how disputes will be resolved, such as through mediation or arbitration.

In summary, an owners corporation management agreement is a vital document that outlines the responsibilities and duties of the management company and the owners corporation. It covers a wide range of topics, including financial management, maintenance and repairs, insurance, and dispute resolution. If you are a property owner in an owners corporation, it is essential to understand the terms of the management agreement and ensure that they meet your needs and expectations.