29 Jan 2026
Words Michael Young Informer

Legacy on the Line: Responding to Disputes

A highly visible, and often feared, type of dispute between an operator and a body corporate is when a body corporate issues one or more Remedial Action Notices to the operator.

What is a Remedial Action Notice?

A Remedial Action Notice, or RANfor short, is a formal notice from a body corporate that it “believes” the caretaker/letting agent has:
(a) engaged in misconduct or been grossly negligent in carrying out their functions under the agreement;
(b) failed to carry out their duties under the engagement; or
(c) (if both a caretaker and a letting agent) contravened the code of conduct for caretaking service contractors.

A RAN acts as a statutory precursor or ‘first step’ for a body corporate seeking either:
(a) to performance manage the operator and help them ‘get back on track’; or
(b) (more commonly, and the common reason for fear) to terminate the agreements that form the management rights business.

Unfortunately, “belief” as a requirement can be highly subjective and goes both ways, and all too often fits the description of being “an acceptance that something exists or is true, especially without proof.”

Even if you are (or think you are) an amazing operator, performing your role to perfection, if a body corporate committee believes otherwise, you could still end up on the wrong end of a RAN.

R.E.A.C.T.

After receiving a RAN, an operator’s life tends to get a whole lot more hectic for about 14 to 30 days or so, depending on the specifics of the RAN and the relevant agreement.

A panic response is never an appropriate solution. Instead, often the best course of action is to keep calm and R.E.A.C.T. That is:

R — Read and Record
Read the RAN carefully the moment it arrives. Note important information, such as the date received, the deadline for compliance, and exactly what breach or breaches are alleged. Issues can easily compound because the notice is skimmed through, not taken seriously, or a due date is missed.

E — Examine
Examine the notice for defects. For example, was it properly authorised, does it clearly identify the complaint (e.g. the duty breached?), and does it provide for a reasonable period of time to rectify the issues complained about?

A — Assemble Your Evidence
Assemble your emails, agreements, plans, logs, performance records, maintenance records, photos, invoices, quotes, proposals and any other piece of relevant information straight away.

As an example, if the complaint is that the hedges haven’t been trimmed, take a photo of all the hedges as they exist on the date the RAN was received, before you do anything to them. That will be your evidence as to the state of the hedges on the date of the RAN.

If trimming is required, attend and then photograph the result.

This provides clear evidence of what was, and now is, and is crucial if the dispute escalates further.

C — Communicate and Clarify
Communication can be tricky after receiving a RAN.

Going silent can be disastrous — ignoring the problem only makes it worse. But firing off bursts of emails scolding the committee for daring to issue you with a RAN, or seeking to rouse support from owners, can be just as (if not more so) damaging.

Instead, when responding to the committee (or any lot owner), always take a moment to assess your communication. Is it short, to the point, polite and free from accusations or complaints? If not, trim it down until it is, keeping it simple and straightforward.

T — Take Advice and Take (Appropriate) Action
Take legal advice regarding the RAN, your options and next steps. Acting early, with appropriate advice, may, in the best case, result in escalation being avoided and a resolution being achieved.

Alternatively, in the worst case, it means you will be prepared and ready if the dispute does escalate into a termination dispute.

Maintaining Your Own Legacy

Getting your reaction to a RAN right can be the difference between triumphant validation and costly consequences. However, if you P.R.E.P.A.R.E in advance (which I’ll cover in the next issue of Informer), you can be ready to prevent almost all but the most ridiculous beliefs of a body corporate from taking root in your business’s legacy.

If you have received a RAN or think you might be about to be caught up in a dispute with your body corporate, please reach out for a discussion about how you should react (michael.young@bagl.com.au). END