No. Receiving a strata management quote through Local Strata Manager is not, by itself, a binding appointment. Your owners corporation or body corporate is normally bound only after it completes its required approval process and signs the manager's written agency or management agreement.
Simply receiving a strata management quote through Local Strata Manager does not usually create a binding contract or require your owners corporation to appoint that manager. The quote is provided so your committee can compare proposed fees, services and conditions. The formal engagement normally occurs only after the owners corporation or body corporate completes its required approval process and enters a written strata management or agency agreement with the chosen manager. However, Australian contract law can treat an accepted quote as binding in some circumstances, so do not formally accept a quote until your committee is ready and has reviewed the proposed management agreement.
A quote displayed or sent through Local Strata Manager gives your scheme information about a manager's proposed pricing, inclusions and service approach. Receiving or viewing the quote does not mean you have selected the manager, authorised them to act, agreed to pay their fees or terminated your existing manager. You may compare quotes, ask questions, request clarification, negotiate terms or decide not to proceed. Submitting a quote request or receiving a shortlist does not require your owners corporation to appoint any manager.
Local Strata Manager is a comparison and introduction platform. It connects owners corporations with strata managers and helps users compare information. The platform is not the strata manager, is not a party to the management agreement and does not act as the agent, guarantor, insurer or fiduciary of either party. Any quote, appointment, payment, refund, complaint or contractual dispute is between the owners corporation or body corporate and the selected strata manager.
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On the Local Strata Manager platform, the quote is intended as a proposal or offer for comparison rather than the complete strata management contract. The full agency agreement usually contains many important terms that cannot be assessed from the headline quote alone, including the appointment term, delegated powers, service levels, extra fees, disbursements, insurance commissions, indexation, termination and handover obligations. The signed agency or management agreement is normally the main document governing the ongoing relationship.
Yes, potentially. Australian Government business guidance explains that an accepted quote can become a legally binding contract. Contracts can also arise through signed documents, email exchanges, verbal agreement or conduct. Whether that occurs in a particular strata selection depends on the quote wording and context. A quote may state that it is indicative, subject to due diligence, subject to owners corporation approval, subject to contract or subject to signing a formal agency agreement. The safest approach is to make clear that any preliminary acceptance is subject to the required owners corporation resolution, final due diligence and execution of an agreed management contract.
The platform describes its quotes as proposals and the agency agreement as the binding engagement document. General contract law may still treat an accepted offer as binding in some circumstances. The wording and conduct matter, so obtain legal advice if there is a dispute about whether a contract was formed.
A quote is best treated as a comparison tool, while the agency agreement is the document that governs the ongoing relationship. The quote should be checked against the full fee schedule and service inclusions before any appointment is approved. The key differences are set out below.
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The client is normally the owners corporation, body corporate, strata company or equivalent legal entity — not an individual owner acting personally. A committee member may request quotes and coordinate the process, but the final appointment must follow the legislation, delegations and meeting rules applying to the scheme. For example, NSW legislation requires the appointment of a strata managing agent to be authorised through the required owners corporation process and documented in writing. Other states and territories use their own appointment procedures.
Not merely because that person requested the quotes or is the chairperson, secretary or treasurer. A committee member should confirm that they have authority under a resolution or valid delegation before communicating acceptance or signing an agreement on behalf of the scheme. Acting without authority can create a dispute about whether the scheme is bound and may expose the individual to complaints or personal risk.
Read every condition carefully. A low headline fee based on inaccurate assumptions may change before the agreement is signed. Common conditions include an expiry date, pricing based on the number of lots or current scheme information, a requirement for the manager to review existing records before confirming fees, a requirement for a site inspection or document review, a requirement for owners corporation approval, a statement that the quote is subject to a formal agency agreement, GST inclusions or exclusions, assumptions about meeting frequency, correspondence volume or major works, and separate fees for extraordinary services, disbursements or after-hours work.
Understanding the label on a quote helps you know whether the price is likely to change. A firm quote means the manager represents that the stated price is fixed for the defined scope and validity period, subject to stated conditions. An indicative quote is a preliminary figure that may change when the manager receives more information or completes due diligence. An estimate is an approximate expected cost rather than a firm commitment to a fixed amount. Subject to contract means the parties expect a formal contract before the engagement is final. Subject to scheme approval means the proposal depends on a valid owners corporation or body corporate decision.
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Before any preliminary acceptance, compare the base annual management fee and whether GST is included, the number of meetings included, fees for extra meetings and after-hours attendance, disbursements, postage, printing, banking and software charges, insurance commission or other commissions and rebates, charges for major works, defects, disputes or insurance claims, portfolio size and the person who will manage your scheme, response times and escalation process, contract term, renewal and annual fee indexation, termination rights, notice period and exit fees, records handover and trust-account reconciliation, and professional indemnity insurance and required licensing or registration.
Compare the documents line by line before signing. The quote should align with the agreement's fee schedule and service inclusions. Ask the manager to explain every difference in writing. Common changes include an added setup fee, fewer included meetings, higher disbursements, CPI or fixed annual increases, insurance commission, extra service rates or a longer contract term. A material unexplained difference is a red flag. Ask for the agreement to be corrected or choose another manager.
Watch for a quoted annual fee that does not match the agreement schedule, uncapped or unclear disbursements, a contract term longer than discussed, automatic renewal that is difficult to stop, a manager who can increase fees without a clear formula or approval process, termination that requires paying all remaining fees regardless of performance, undisclosed insurance or supplier commissions, and important services shown as included in the quote being listed as additional services in the agreement.
Yes. You can ask the manager to revise the fee, cap disbursements, include extra meetings, shorten the initial term, change indexation or improve termination and service-level clauses. A revised proposal or counter-offer replaces or changes the earlier commercial position. Keep all negotiated changes in writing and ensure they are inserted into the final agreement. Do not rely on a verbal promise that contradicts the written contract.
Yes. A quote may include an expiry date or remain open only for a reasonable period. A manager may be able to withdraw or revise a quote before valid acceptance, particularly if scheme information was incomplete or circumstances changed. If the quote has expired, request a refreshed proposal and draft agreement rather than assuming the old price still applies.
Actions that merely request more information, a call, a meeting or a draft agreement should not be treated as final appointment unless the platform or manager clearly states otherwise. Read the wording beside any button, checkbox or electronic signature before proceeding. A button labelled "accept quote" may have a different legal effect from "request a meeting" or "shortlist manager". When uncertain, state in writing that your interest is non-binding and subject to scheme approval and execution of a satisfactory agency agreement.
Follow a structured process before confirming any appointment. The steps below help the committee protect itself against incomplete information, authority disputes and mismatched documents.
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