The break-up

⚖️ One issue that arises in strata management is what happens after a strata manager’s appointment is terminated. A termination does not give the former manager the right to simply deduct unpaid invoices or their fees from the strata company trust account after the appointment has ended. 🚫💰

Once terminated, the strata manager stands in the same position as any other unsecured creditor or supplier. Any outstanding invoices should be submitted to the strata company for payment through the proper process and with appropriate authority. 📄✍️

Trust accounts exist to hold funds on behalf of the strata company, not as a mechanism for former agents to self-pay after authority has ceased. 🏦🔒

This is an important governance and fiduciary principle that protects the integrity of trust money and ensures transparency for councils of owners and lot owners alike. 🤝

Good strata practice requires:

✔️ Clear termination procedures

✔️ Prompt reconciliation and handover of records

✔️ Proper invoicing processes

✔️ Respect for trust accounting obligations.

Professionalism matters most at the end of an appointment, not just the beginning. 👏