Agent shut down

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

 

Similar thread: Terminating Agents

 

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.

 

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)??

 

The contracts usually have a clause in them allowing them to be reassigned to another agency.

 

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.

 

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.

 

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.

 

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?

 

What Paul says seems to make point from a contractual point of view. I guess I depends what would be deemed reasonable notice.

 

Read contract and see if there are clauses relating to insolvency of a party to the contract.

 

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.

 

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!

 

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.

 

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.

 

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.

 

This doesn't sound like legal advice.

 

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.

 

What makes you think that a new management agreement has to be signed?

 

The only way a new agent act on your behalf, otherwise they can't without your authority.