Agent shut down

So you are asserting that the lawyer, @Terry_w, who says that the chose in action can be assigned, and the law school that's taught me the same, is incorrect?

What is your source?

Is this a statutory peculiarity of some jurisdiction, or has the OP mentioned some clause of their agency agreement that I've missed?

 

I get a few odd looks when I put 14days notice in contracts, 30 days does not seem to shock, I do think that 7 days is ample really.

PS they may have gone bust according to your info, but I bet they sold the roll, no one goes broke and says....here, here is all my hard work and files for X amount of time free to whoever wants it.

 

Assuming its a standard NSW agency agreement.

I would say Section 55... also advice from REI and the office of fair trading.


Property, Stock and Business Agents Act 2002 No 66
Current version for 1 January 2016 to date
Part 4Division 1Section 55

55 No entitlement to commission or expenses without agency agreement

(1) A licensee is not entitled to any commission or expenses from a person for or in connection with services performed by the licensee in the capacity of licensee for or on behalf of the person unless:
(a) the services were performed pursuant to an agreement in writing (an agency agreement) signed by or on behalf of:
(i) the person, and
(ii) the licensee, and
(b) the agency agreement complies with any applicable requirements of the regulations, and (c) a copy of the agency agreement signed by or on behalf of the licensee was served by the licensee on that person within 48 hours after the agreement was signed by or on behalf of the person.

The agreement is not with the new agency, only the old one. Just because a new agency has bought the rent roll does not mean that have an automatic agreement with the landlord unless stipulated in their current agreement, which the OP states there isnt.

If we are wrong, please educate us instead of being condescending and assuming we posters have no idea what we are talking about. Show us sources for your information so we as agents can advise people better in the understanding of what they need to do, after all thats what this forum is about.

 

I am no contract law expert but what if there was an agency agreement and it was assigned by the agent to another agent?

See s12 Conveyancing Act NSW
CONVEYANCING ACT 1919 - SECT 12 Assignments of debts and choses in action

This section contains the longest single sentance I have ever read.

 

Here it is:

12 Assignments of debts and choses in action
charge only) of any debt or other legal chose in action, of which express notice in writing has been given to the debtor, trustee, or other person from whom the assignor would have been entitled to receive or claim such debt or chose in action, shall be, and be deemed to have been effectual in law (subject to all equities which would have been entitled to priority over the right of the assignee if this Act had not passed) to pass and transfer the legal right to such debt or chose in action from the date of such notice, and all legal and other remedies for the same, and the power to give a good discharge for the same without the concurrence of the assignor: Provided always that if the debtor, trustee, or other person liable in respect of such debt or chose in action has had notice that such assignment is disputed by the assignor or anyone claiming under the assignor, or of any other opposing or conflicting claims to such debt or chose in action, the debtor, trustee or other person liable shall be entitled, if he or she thinks fit, to call upon the several persons making claim thereto to interplead concerning the same, or he or she may, if he or she thinks fit, pay the same into court under and in conformity with the provisions of the Acts for the relief of trustees.

 

Thanks Terry.... butwhat a ridiculous paragraph! 10 times I have read it now to get my head around it! lol

Am I reading that as " providing the (we will use agents in this case) agent has notified the owner of the change and the owner has not apposed it, then they can honour the origional agreement. They cant if the notification has been apposed, ie the owner does not agree and they can terminate immediately?

Glad I didnt do contract law!

 

That paragraph would have been written about 100 years go. Thankly the full stop has become more popular since then as has breaking sensnces up into different points.

These choses in action can be assigned as long as notice is given. E.g. you owe me money. This is a chose in action. I can assign the debt to someone else and notify younthat you now owe them money.

Lenders do this all the time.

Similar with the contract for management. Unless there is a clause in the agreement saying it cannot be assigned then i think it could be assigned.

 

The Conveyancing Act and the example you gave applies to lenders but why does it also apply to real estate agents?

With a clause in the management agreement this could allow another agent to perform the services and be entitled to a commission while being managed by both agencies.

But if your agent has handed over the management to another company, then the current agreement with the previous agent would have been terminated and therefore should need a new agreement between the landlord and new agent.

Even if there is some legal way that the agreement is automatically transferred, you should have a right under consumer law to cancel the service as it isn't the same as the one you agreed to.

 

I accidently responded within the quote. Open quote to see response above.

 

Without looking into it I would saynthis would apply to any chose in action. Anything that could be assigned such as contracts, debts etc. There may be some australian consumber law or some state legislation for agents which could effect this but I am not aware of anything off the top of my head.