If you live in New South Wales (NSW), then you may be aware of strata living and the importance of a strata management agreement. For those who aren’t familiar with the term, strata living refers to living in a multi-unit property consisting of apartments, townhouses, or duplexes, where multiple owners share common areas like lifts, hallways, and gardens. As strata living becomes more popular in NSW, it’s crucial to understand the role of strata management agreements.

In simple terms, a strata management agreement is a legal document that outlines the rights and responsibilities of the owners, the owners` corporation, and the strata manager. The NSW Strata Schemes Management Act 2015 regulates strata management and requires that each strata scheme has a written management agreement in place. It`s important to note that a strata management agreement is an essential document that must be structured based on the specific requirements of the strata scheme in question.

The purpose of a strata management agreement is to provide clarity and transparency on several aspects. Firstly, it outlines the role of a strata manager and the services they will provide to the owners` corporation. This includes managing the finances, maintaining the property, issuing notices, arranging meetings, and keeping records of the strata scheme. Secondly, it details the responsibilities of the owners` corporation, including paying fees, maintaining common property, and ensuring that they abide by the by-laws. Thirdly, it outlines the rights of individual owners, such as access to common property and participating in meetings.

The NSW government requires strata management agreements to comply with several legal requirements. These include defining the scope of the strata manager`s duties, specifying the fees payable, and outlining the procedures for appointing and terminating the strata manager. The agreement must be reviewed and updated regularly to ensure it complies with current legislation and meets the changing needs of the strata scheme.

In conclusion, a strata management agreement is a vital document that outlines the rights and responsibilities of all involved parties. The NSW Strata Schemes Management Act 2015 regulates and requires all strata schemes to have a written management agreement in place. If you`re living in a strata scheme in NSW, it`s important to understand the contents of the agreement, including the role of the strata manager, the responsibilities of the owners` corporation, and the rights of individual owners. To ensure compliance with the Act and to meet the changing needs of the strata scheme, the agreement must be reviewed and updated regularly.