Conveyancer didn't include rent in settlement

We purchased in QLD and settled early this month. The conveyancer didn't include or calculate rent in the settlement figures because the other side told them we were sorting it amongst ourselves (not true). They didn't bother to check with us if this was the case (the conveyancer also failed to take out title insurance as instructed, not that impacts on this issue).

We finally received the rent ledger yesterday and the tenant had rent arreas back to early Jan 2016. Since settlement they have paid one weeks rent and are now 19 days behind. We have instructed the agent to issue an eviction notice. Currently there is no Landlord insurance because of insufficient funds in the rental account (next time we will pay prior to settlement rather than instruct the managing agent).

We let the conveyancer know we aren't happy and the person we are dealing with at the conveyancing office is reporting it up to their manager.

Any advice would be appreciated.

 

Since when is rent included on the settlement statement?

As far as I know the existing tenant and their rental payments aren't the conveyancer's concern.. It's your responsibility to make sure this is up to date with the PM prior to purchase.

 

Did you contract with the conveyancer to take into account rent?

 

I think it needs to be sorted out with the PM? My last IP settled this January is already tenanted - rental is definitely not part of the settlement calculation.

 

The managing agent requested the settlement statement for rent figures?

We signed an agreement with the managing agent a few weeks prior to settlement.

 

Managing Agent adjusts for rent. They hold money on trust for payment to the owner. They disburse based on calcs as to who the owner is at the time.

 

Managing agent is perhaps not familiar with the process? New to the game PM perhaps? Or just trying to dodge work?

 

I guess we'll be looking for a new managing agent in that case!

 

It is a large agency in the Northern Suburbs of Brisbane and their speciality is.........rentals.

 

No, I didn't know this was specifically excluded. Live and learn!

 

Yes its up to managing agent to determine the rent split/pro-rate. However your (or vendors) conveyancer should have notified the agent of the settlement date and confirmation of settlement so they can action accordingly.

 

I was used as the go between for agent and conveyancer. I don't believe they ever contacted each other directly.

So conveyancer believed other side when they said I was sorting it out with seller and agent put me back to the conveyancer for settlement rent figures which were really their responsiblity.

 

We do get some agents that don't want to do the adjustment. We will then do it if asked by the agent to make the process goes through.

At settlement we will normally notify the agent formally and send an RTA form 5, BUT that is going well beyond the requirements. If agent is changing then it may be a different story but if same agent I can't see how they can disburse rent anyway other than based on ownership at time. They hold rent in trust for the owner.

 

This was an owner managed property going across to out 'specialist' rental agency.

The rent arrears go all the way back to 4th January and have been gradually getting worse so obviously tenant needs to go.

 

...are the pre-settlement arrears your problem?

 

I wouldn't think so. The agent wants to issue the breach notice for rent arrears back to January. I asked her to run it past her office manager because I'm worried if it gets to tribunal they will tell us to start again and only issue the breach for the time we have owned it.

 

Just got off the phone to the agent. They say because it was owner managed it was up to the conveyancers to sort out. They are sending eviction notice today.

Anyone want to recommend an agent around North Brisbane? Good chance we'll be getting a new agent once this is sorted.

 

Lu Bracher from Property Management HQ.

 

Theres also @DiligentPM from the forums here

 

Andrew Allen on here owns Rental Guardians