NSW Strata management agreement and placing the common seal

Discussion in 'Property Management' started by Stoffo, 30th Nov, 2018.

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  1. Stoffo

    Stoffo Well-Known Member

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    Hi all,

    I was recently told that our Strata Management agreement was not actually valid due to the common seal not being dated. (when any legal document is stamped using the common seal that the date be written across the seal to officially complete the process).

    Is this actually true ?

    If so, then by not dating it does the document become invalid ?

    (maybe this is @Terry_w area ? )

    TIA

    Stoffo
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  3. Ted Varrick

    Ted Varrick Well-Known Member

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    So your Strata Manager would be open to either a retrospective agreement being endorsed at an Owners Corporation meeting or all their prior fees and/or fee increases being refunded due to an invalid agreement?
     
  4. Stoffo

    Stoffo Well-Known Member

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    Thanks gents.

    Two committee members did sign the agreement, but no common seal was in place.
    Couldn't find the exact requirements under law for placing the seal for a strata scheme/body corporate, but @Terry_w link makes a similar comparison to corporate applications.

    @Ted Varrick we are not looking to recover costs paid, just want out of the agreement without having to pay out the remaining term (we are changing managers due to being very unhappy with the performance and myriad of charges :oops: ).

    We do have another out fortunately, the agreement signed this year is based on a 2013 SCA platform, and the strata manager mistakenly dated some parts 2018, instead of 2019 :p:D
    So all we have to do is serve notice to terminate ;)
    (Just wanted to verify all aspects)

    Thank you :cool:
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What about the equitable principal of mistake
     
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  6. Stoffo

    Stoffo Well-Known Member

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    True @Terry_w (you always have good advice/objective point of view. Thanks)

    But how many mistakes can a qualified Realestate agent and property manager make before it is considered stupidity on his/her behalf?

    - the contract was an old 2012/13 SCA agreement ( far outdated)
    - the Agreement is dated to start 21/3/18, with the minimum term being until 12/3/18
    - the common seal affixed date has not been placed (so the agreement isn't completed)
    - it doesn't state a term of engagement (max term of 12 months for a new complex)
    - it doesn't state a completion date......

    (I did some searching, on the net, here and enquiries with other Strata Managers)
    That's 5 "errors from the Agencies Principal", yes he did attend and sign ....

    Please correct me if I am wrong, I am not qualified in realestate or matters of law, this is why I asked. Cheers
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I don't know what the answer is, but these seem to be minor issues.

    Mistakes happen in contracts all the time.
    I just did a google search and found this Australian Contract Law | Julie Clarke

    I did see a court case get kicked out because the lawyer had the car rego number incorrect in documents - it couldn't proceed without amendment.
     
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  8. Ted Varrick

    Ted Varrick Well-Known Member

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    Sounds like a good example of terminating by mutual agreement.
     
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