(1) There is implied
in every agreement to which this section applies a provision that the strata
company may terminate the agreement, by notice in writing to every other party
to the agreement, after 5 years have passed since the agreement was
(2) No cause of action
against any person arises from the exercise of the power referred to in
(3) An agreement shall
not exclude the operation of subsection (1) and to the extent that it
purports to do so it is of no effect.
(4) This section
applies to an agreement if —
relates to the provision of services to the strata company or the proprietors,
including the services of an agent in connection with the management of the
common property or the performance of the functions of the strata company; and
is made after the commencement of section 41 of the Strata Titles
Amendment Act 1995 ; and
it was entered into by the strata company when any
proprietor held 50% or more of the aggregate unit entitlement of the lots; or
the State Administrative Tribunal has, by order made on
the application of a proprietor, determined that the agreement is unfair to
the proprietors of 25% or more of the aggregate unit entitlement of the lots.
(5) The State
Administrative Tribunal may, on the application of any person made in respect
of an agreement, by order extend the period of 5 years provided for by
subsection (1), so far as it applies to that agreement, if satisfied that
the agreement —
fair to all proprietors; and
remain fair to all proprietors during the extended period.
(6) An extended period
under subsection (5) is not to exceed the term specified in the agreement
or a period of 10 years from the time when the agreement was entered
into, whichever is the lesser.
(7) The provisions of
Part VI apply to an application made to the State Administrative Tribunal
under subsection (4)(c)(ii) or (5) and to an order made by the State
Administrative Tribunal in the same way as they apply to an application and an
order made under that Part.
[Section 39A inserted by No. 58 of 1995
s. 41; amended by No. 55 of 2004 s. 1121, 1156(1) and (3) and