Join Australia's most dynamic and respected property investment community

Agent shut down

Discussion in 'Property Management' started by dan2101, 16th Feb, 2016.

  1. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Hey all,

    I was just wondering how much notice you had to give a (new) managing agent that has taken over the PM of your property due to the original agent closing?

    As I didn't chose for this new agency to take over the managing of my property and haven't signed any forms am I able to terminate immediately and transfer to a new agency?

    Thanks

    Dan
     
  2. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    Similar thread: Terminating Agents
     
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    Check the original MAA (managing agency agreement) you signed - it may have a clause that allows the PM to assign your PM to a new PM - so technically you don't need to sign up with the new PM.

    Termination clause as per what @MsAli said.
     
  4. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Ok sorry I probably didn't word it correctly. My original managing agent closed (went broke) and the entire rent roll was taken over by a totally different agency (not just a different branch from the same company)??
     
  5. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,571
    Location:
    Adelaide, SA
    The contracts usually have a clause in them allowing them to be reassigned to another agency.
     
    Perp likes this.
  6. JacM

    JacM VIC Buyer's Agent Business Member

    Joined:
    12th Jul, 2015
    Posts:
    1,106
    Location:
    Melbourne, Australia
    Normally in a situation like this your notice period wouldn't start again with the assigned agency. Check your agreement document, but normally this is how it would be. So for eg if you'd been with the original agency for at least the minimum term required by your management agreement, you would be able to terminate the assigned agent immediately.
     
  7. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    If the original agent went belly up I doubt there is a contract to enforce. The new agent may have no rights beyond reasonable notice.
     
  8. Xenia

    Xenia Adelaide Property Manager Business Member

    Joined:
    21st Jun, 2015
    Posts:
    2,342
    Location:
    4/136 The Parade Norwood, South Australia
    The original management agreement with all it's terms, conditions and notices still stands irrespective of who it has been assigned to to manage it.
    If you are mid way through a fixed term, you need to honour the term.
    If it is a periodic agency requiring 60 days notice, you need to provide 60 days notice
    The agency agreement stands alone and does not depend on the agency that is managing it.

    Like taking a loan with one bank who has assigned the loan to another bank - you are still bound to that loan.
     
  9. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Xenia so what happens if the agency that takes over the rent roll is know to be incompetent? Seems ridiculous that you would be bound to staying with them for 60 days when you had no say in the matter?
     
  10. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    What Paul says seems to make point from a contractual point of view. I guess I depends what would be deemed reasonable notice.
     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,960
    Location:
    Sydney
    Read contract and see if there are clauses relating to insolvency of a party to the contract.
     
  12. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    We always advise our clients to change the notice of termination period from the 'standard' 90 days to 30 days or even 0 days before they sign off on the agency agreement.
     
  13. dan2101

    dan2101 Well-Known Member

    Joined:
    8th Jul, 2015
    Posts:
    330
    Location:
    NSW
    Terry there are no clauses as to the insolvency of the agency.

    The notice on the original agreement I signed with the PM I selected was for 90 days (good point propertunity I will definitely do this next time).

    I just can't see how if I haven't signed anything with an agency that I didn't select how I can be held to a contract. I guess the law is strange sometimes!
     
  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,960
    Location:
    Sydney
    This is a 'chose in action' (i think) which is something of value which can be assigned. See if there is a clause preventing assignmebt perhaps.
     
  15. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,096
    Location:
    Sydney & Adelaide
    You pick up the rental ledger from the PM and give it to a new one. If the outgoing manager wants to take legal action to enforce specific performance over 1-2 months management fee for notice period then so be it. Chances are if they are incompetent then they wont. At worst you pay 2 months agency fee as penalty.
     
  16. Stimpy

    Stimpy Member

    Joined:
    24th Jun, 2015
    Posts:
    16
    Location:
    NSW
    If the new agents have bought the rent roll and has no affiliation with the previous agents (license number etc) you can change as soon as you want assuming you haven't signed a new agreement. Nothing they can do as the agreement was with the previous agency which no longer exists.
     
  17. Perp

    Perp Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    455
    Location:
    Brisbane
    This doesn't sound like legal advice.
     
  18. Stimpy

    Stimpy Member

    Joined:
    24th Jun, 2015
    Posts:
    16
    Location:
    NSW
    and its not.....but having organized this very situation many times here in NSW I am just passing on my experience. It is upto the new agent to follow up and get the landlord to sign a new Management agreement with them.
     
  19. Perp

    Perp Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    455
    Location:
    Brisbane
    What makes you think that a new management agreement has to be signed?
     
  20. Nick Valsamis

    Nick Valsamis Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    504
    Location:
    Sydney
    The only way a new agent act on your behalf, otherwise they can't without your authority.