21 Dec 2012
A Property24 reader asks:
I am a trustee and owner of in a townhouse complex.
The current managing agent has been managing (or lack thereof) the complex for over 6 years. With endless problems regarding security issues (armed robberies and one murder case), mismanaging and non-transparency of funds, dishonesty and deterioration of the complex etc, many owners have voiced their dissatisfaction with the current state of affairs run by our managing agent and would like to give notice and terminate the contract.
As a trustee, I have requested a copy of the contract from the owner of our managing agent company, but he has failed to provide me with the contract copy. This only gives me an impression that the managing agent has a hidden agenda with skeletons in the cupboard and can sense that their time is up.
Please advise on how we can proceed further as a body corporate/board of trustees. Do we need the actual contract to provide notice of termination or is there another way?
The Act provides that, in the first instance, the Trustees may appoint a managing agent in terms of a written contract for an initial period of one year which appointment shall be automatically renewed from year to year until the trustees notify the agent to the contrary.
Should a contract exist to the above effect, then, in order to terminate the contract, the trustees would have to formally resolve to advise the managing agent that his contract would be terminated at the end of the current financial year of the body corporate provided that the notice is given at least one month before the end of the current year.
In the absence of a contract, I am of the opinion that notice of one month can be given at any point in time. I would, however, recommend that prior advice from an attorney should be obtained in this instance.
In the event that the managing agent is in breach of any provisions in his contract or if he is guilty of any conduct which at common law would justify the termination of a contract between master and servant, the trustees would be in a position to cancel his contract prior to the end of the current year.
Readers may submit questions to Property24’s Guest Expert panel and/or comment below. We may not be able to answer all questions received, but all will be considered.
About the Author
House for sale in Capital Park R 999 000
House for sale in Lotus Gardens R 875 000
Townhouse for sale in Eldoglen R 2 500 000
House for sale in Florida Glen R 8 480 000
House for sale in Rustenburg R 550 000
House for sale in Protea Park R 1 500 000
Townhouse for sale in Cashan R 810 000
Farm for sale in Alldays R 8 500 000
Farm for sale in Vaalwater R 3 500 000
House for sale in Van Der Hoff Park R 1 080 000
If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.
For the best browsing experience, update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.
Please contact our Property24 Support Team for further assistance. Tel. +27 (0)861 111 724