Owners Strata Plan 56443 v Regis Towers Real Estate Pty Limited

(2003) 58 NSWLR 78; [2003] NSWCA 274

NSW Court of Appeal

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Interrogate

Catchwords

1. Real Property
2. › Strata Titles
3. › Owners Corporation
4. › Functions and Powers
5. › Delegation of Functions
6. › Whether caretaker management agreement amounted to delegation prohibited by s 13(3)
7. › Strata Schemes Management Act 1996 (NSW), ss 8, 9, 13, 28, 61
1. Real Property
2. › Strata Titles
3. › Owners Corporation
4. › Caretaker Agreements
5. › Engagement of persons to assist in exercise of functions
6. › Distinction between employment to assist and delegation of functions
7. › Strata Schemes Management Act 1996 (NSW), ss 13(1), 13(3)
1. Contract
2. › Legality
3. › Statutory Prohibition
4. › Whether agreement void for contravention of statute
5. › Strata Schemes Management Act 1996 (NSW), s 13(3)

Quick Take

Section 13(3) of the Strata Schemes Management Act 1996 (NSW) prohibits the engaging of another person to undertake significant decision-making and control in relation to the owners corporation's areas of responsibility, but does not prohibit engaging contractors to carry out tasks that contribute to the performance of those functions, provided the owners corporation retains direction and control. A caretaker agreement that requires performance of specified duties subject to the owners corporation's direction, with limited authority to pledge credit and make minor contracts, does not constitute a prohibited delegation even though it covers aspects of the maintenance and repair function.