NSW gives owners corporations a clearly structured exit from a strata managing agent — but it runs on statutory deadlines that punish late starters. The single most important date is three months before the end of the agent's term: serve written non-reappointment notice by then and the exit stays in the owners corporation's control. Miss it, and the agent gains a statutory option to extend their own appointment. This guide walks through the full process, including what the 2025 reform tranches changed.
Section 50 of the Strata Schemes Management Act 2015 governs how long strata managing agents can be appointed and how those appointments end. The essentials:
Terms are capped. An agent appointed by the owners corporation at the first AGM holds office for a maximum of 12 months. Every other appointment — including any additional term under an option to renew — expires at the end of 3 years.
Reappointment is a general meeting decision. At the end of the term, the agent may be reappointed by resolution at a general meeting. There is no automatic continuation of a full term.
The agent must warn you the term is ending. The agent is required to give the owners corporation written notice of the end of their term at least 3 months, and not more than 6 months, before it ends. That notice is the committee's cue to start the selection process if it hasn't already.
The 3-month statutory extension option. A 3-year instrument of appointment is taken to include an option for the agent to extend the appointment by up to 3 months after the term ends, if the owners corporation decides not to reappoint them. Critically, the agent cannot exercise that option if the owners corporation gives written notice, at least 3 months before the end of the term, that the agent will not be reappointed.
The committee can bridge short gaps. The strata committee may extend the agent's appointment for successive periods of up to 3 months pending a reappointment decision — but not beyond the next AGM, and if it does extend, it must give the agent at least 1 month's notice of a decision not to reappoint or further extend.
The lowest-risk route: let the current term expire, serve the 3-month non-reappointment notice on time, and appoint the incoming agent by resolution at a general meeting to commence when the old term ends. No breach needs to be proven and there is no damages exposure. The overwhelming majority of well-executed manager changes in NSW run this way.
The appointment may be terminated in accordance with the instrument of appointment, if authorised by a resolution at a general meeting. That means reading the agreement carefully: what termination rights exist, on what notice, and for what causes. Ending an agreement mid-term without a contractual basis typically exposes the owners corporation to a claim for the balance of the agent's fees — which is why mid-term exits without clear breach are usually negotiated rather than forced.
The third tranche of the 2025 reforms gave owners corporations the ability to apply to NCAT to vary or end a strata managing agent agreement (or building manager agreement) where the agent acts unlawfully — including breaches of their duties under strata legislation. This creates a statutory escape route in serious cases that doesn't depend on the wording of the contract. It is a formal legal proceeding, so schemes should take advice before applying.
1. Get the instrument of appointment and confirm the expiry date. Everything keys off it. Note the 3-month non-reappointment deadline in the committee's calendar immediately.
2. Shortlist and obtain written proposals. Compare candidates on total annual cost (base fee plus additional charges), disclosed commissions and supplier connections, reporting practices, and how contractor quoting actually works day to day. Under the post-2025 disclosure regime, every candidate must show you the full picture — hold them to it.
3. Serve the non-reappointment notice in writing, on time. At least 3 months before the term ends, with proof of delivery.
4. Convene the general meeting. Put separate, cleanly drafted motions: one dealing with the outgoing agent, one appointing the incoming agent on the terms of their proposal. Follow the notice periods in the Act and your by-laws precisely — procedural defects are the most common way these decisions get challenged.
5. Manage the handover. Records, funds, insurance documentation, contracts, correspondence, keys and access credentials. Reconcile the accounts as at the changeover date and document any gaps in writing immediately.
StrataTrade gives strata managers and committees a shared, auditable record of every job posted, every quote received from verified trades, and every recommendation made — the documentation the NSW regime now expects, produced automatically.
See how it worksUnder section 50 of the Strata Schemes Management Act 2015, an agent appointed at the first AGM can be appointed for a maximum of 12 months. Any other appointment, including renewal options, is capped at 3 years.
A 3-year instrument of appointment is taken to include an option for the agent to extend their own term by up to 3 months after expiry. The agent loses that option if the owners corporation gives written notice, at least 3 months before the end of the term, that the agent will not be reappointed. Serving that notice on time keeps the exit date in the owners corporation's control.
Appointment and reappointment of a strata managing agent are decided by resolution at a general meeting of the owners corporation. Termination in accordance with the instrument of appointment must also be authorised by a resolution at a general meeting. In practice committees put separate motions: one dealing with the outgoing agent, one appointing the incoming agent.
From 27 October 2025, owners corporations can apply to the Tribunal to vary or end a strata managing agent agreement where the agent acts unlawfully, including breaches of their strata law duties. This sits alongside the existing contractual and expiry-based exit paths.
From 1 July 2025, unfair contract term protections apply to standard-form contracts entered into, renewed or varied by owners corporations. Terms that create one-sided exit rights or unfair liability shifting may be challengeable. Whether a specific clause is unfair is a legal question — get advice before relying on it.