10 Years and Terminated: Court Upholds Cap to Pre-2003 Building Management Agreement and Allegations of Gross Misconduct
There has been a widespread practice of extending caretaking or building management agreements to get around the 10 year cap in the Strata Schemes Management Act 2015 (SSMA 2015). However, in the recent case of Australia City Properties Management Pty Ltd v The Owners – Strata Plan No 65111 [2020] NSWSC 1505, Justice Darke held that deeds of variation used to extend the term of the agreement for a period of greater than 10 years by adding option periods were, in fact, capped at a term of 10 years.