Are Long Tail Building Management Agreements still Enforceable?
A common source of frustration for owners corporations trying to ensure good building management is the long-term building management agreement negotiated by the developer and inherited by the owners corporation. Frequently, this involved sale of building management rights, with little if any regard to the owners corporation's needs and best interests. However, a recent case suggests that the NSW Civil & Administrative Tribunal may be able and willing to terminate such agreements and that an owners corporation stuck with one should consider taking legal advice to assess whether that is an option for them.