A Contract of Appointment must not include any of the following terms:
- that limits the Owners Corporation’s right to terminate by Ordinary Resolution;
- that allows the Manager the option to renew the Contract;
- that allows the Contract to automatically renew (the Contract will instead rollover to a month-by-month);
- that requires 3 months or more notice of termination (for tiers 1 and 2);
- that requires 1 month or more notice of termination (for tiers 3, 4 and 5); and
- that restricts the Owners Corporation’s ability to reasonably refuse assignment of the Contract.
If the Contract is not formally renewed, it will renew on the same terms, but termination may be given with at least 1 month notice, unless specified shorter in the Contract.
Note: Any of the above terms will automatically be void on or after the ‘commencement day’ of the Amendment Act (s 208).
Find out more at https://www.legislation.vic.gov.au/as-made/acts/owners-corporations-and-other-acts-amendment-act-2021
