Body Corporate ManagerIssues

Body Corporate Manager fees at end of contract

When a relationship between a Body Corporate Manager and a Committee breaks down, there is often considerable time and effort expended by both the Committee and the Body Corporate Manager to address the problems.  The final outcome is often that any existing contract is discontinued.  Committees can get shocked when the records are finally handed over and substantial monies are withdrawn from the Body Corporate’s bank account with minimal explanation.  Whilst an invoice will usually be found in the records for the amounts deducted, explanation for the charges may minimal.
Provided that there are invoices, the Body Corporate Manager may have done nothing adverse with respect to the Body Corporate Act.  The Committee need to review their Body Corporate Manager contract terms carefully.
There are often exit fees charges by a Manager.  Disbursements are often charged in arrears.  There may have been considerable work done around the finalisation time (due to the dispute) that might not be covered under the contract as an inclusion and is consequently charged as an additional deduction.
If after making this assessment, the Committee considers that the deductions are not legitimate, the Committee’s best recourse is to consider lodging a QCAT debt dispute.  Before lodging the dispute, the Committee will need to have written to the Manager and set out the exact nature of the monies disputed.  An attempt to come to an agreement should be sought.  However, if that process fails, a dispute can be lodged.  The QCAT website tells how.  Have a look at the adjudication of this case.  Most of the debt claims made by the Body Corporate against the Manager were dismissed.