NSW Agent asking us to sign a new Exclusive Management Agreement

We've been with this agent for over 10 years, which at the start we signed a management agreement. Out of the blue today our agent sent us an email with a new Exclusive Management Agreement they have asked us to say.

In the letter they mentioned:

"There have also been changes to the Real Estate Legislation. These changes related to our compliancy and our engagement with you. As such, we are required under the new Real Estate legislation of NSW to issue new Managing Agency Agreements. I have attached for your review and full signature the new Exclusive Management Agency Agreement."

"We also require a copy of your drivers’ license and/or passport for compliance purposes."

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Is this true for NSW which the agent claims? None of our other property managers has asked us to sign new management agreements. Could it be that they just trying to lock us in with brand new "updated" exclusive management agreement more favourable to them?

There was no requirements from property managers to ask for drivers’ license and/or passports. Is this something new?

 

Under compliance requirements it is likely that you need to verify who you are via licence/rates notice/ other form (as I have in recent months, so this is likely).
But as for the exclusive management agreement NO !
Could be that they are looking to sell their management roll.......

 

That's what I thought. Made no sense why they would ask to sign a new exclusive management agreement when the one we signed ages ago is valid. Unless it benefits the agency in some way.

 

Read it thoroughly before returning it to make sure they haven't sneakily added in extra fees and charges, or increased their commission rate

 

It's pretty bad that they are misrepresenting the law. One of my pet peeves.

This sort of behaviour deserves the book thrown at it frankly. Breaches of real estate agent codes of conduct, as well as misleading and deceptive conduct under the Australian Consumer Law.

 

If an Agency No.1 sells their rent roll to Agency No.2 and you have a new two year exclusive management agreement with Agency No.1, are you legally bound to stay with Agency No.2 as your contract was with Agency No.1, not Agency No.2

 

Or you could ask for a few weeks rent rebate in exchange.

 

It will depend upon whether the agency agreement is with the REA company (XYZ Pty Ltd) T/A "Big Shot Realty" & the company continues to trade as "Big Shot Realty" with a different licensee or with the REA company (XYZ Pty Ltd) & then ABC Pty Ltd purchases the rent roll with a different licensee.

In the first instance, the buyer of XYZ continues to trade and you see no difference and not required to enter into a new management agreement but if ABC trades as "Big Shot Realty" you will require a new agreement.

Rent rolls are bought and sold all the time however it comes down to whether the structure holding the rent roll (& all of it's assets and liabilities) is purchased or only the rent roll itself, which is more common.

 

You are, because they buy and inherit those contracts.

(In the states we're in at least, others might be different).

 

Does NSW have lock-in contracts? I know WA and SA do, but I didn't think NSW did? QLD are continuing appointments but no fixed term- 30 days termination at any time.

 

NSW is same as QLD, not locked in however termination period can vary from 48hrs to 120 days (I don't think there's a limit).

 

Over the past 20 odd years all my contracts with PMs have been 30 days notice (I think this is the standard REIWA agreement). I've only had one agency that tried to tie me into a one year agreement. I asked them to specify what fixed costs they would incur by taking on my business that would justify penalties for moving to someone else, which of course they couldn't provide. Any contract involving more than 30 days notice is scam imo.

 

I'd maybe double check those contracts. All the REIWA ones I've seen have a set management period - that's what the template is geared up for.

There is a reference to a 30 day termination period, but that can't be used during a currency of a management period - it's for after it expires and the agreement goes into periodic.

 

Ok, 28 days notice. I've never filled the dates part and apart from that one mentioned, never been asked to do so either.