Western Australian Consolidated Acts

STRATA TITLES ACT 1985 - SECT 39A

39A .         Power to terminate certain contracts for services

        (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 entered into.

        (2)         No cause of action against any person arises from the exercise of the power referred to in subsection (1).

        (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 —

            (a)         it 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;

            (b)         it is made after the commencement of section 41 of the Strata Titles Amendment Act 1995 ; and

            (c)         either —

                  (i)         it was entered into by the strata company when any proprietor held 50% or more of the aggregate unit entitlement of the lots; or

                  (ii)         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 —

            (a)         is fair to all proprietors; and

            (b)         will 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 1158.]