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Extension of PM Agreement

Discussion in 'Legal Issues' started by MattADL, 8th Jul, 2016.

  1. MattADL

    MattADL Active Member

    Joined:
    19th Jun, 2015
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    Location:
    Adelaide
    I signed with a PM June 2015, for a 1 year contract, expired June 2016.

    What I didn't notice is that they sent me a notice at the end of this contract that states: "This PM agreement will automatically extended for another year if you do not reply with in 14 days." (therefor creating a new contract June 2016 - June 2017)

    I wish to change agent, but they are saying I have a contract with them till, June 2017, and I would have to pay a break fee.

    Is this legal to extended a contract in this manner? There is no mention of contract extensions in the original contract that I signed June 2015.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Are you sure there is no mention of contract extensions in the original? I've seen contracts which do this (and I would never sign one).

    Is this in SA? Is it based on a standard REISA management agreement?

    Tell them to show you where it says you signed a contract for 2016-17.
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    The 2 mainly used contracts, REISA and Auctioneers Society don't have that condition in their standard contract template. Was it a clause they added and you signed off on?
     
  4. MattADL

    MattADL Active Member

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    19th Jun, 2015
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    Location:
    Adelaide
    Yes, this is in SA and the original contract is based on the REISA standard Residential Management Agreement. No mention (double checked) of a contract extension in the original contract.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    You cant contract by being advised you must otherwise opt out. Electricity contracts all had this and its 100% bluff. The contractual terms may continue until revoked. Enforcement of penalties, fees and the like to terminate etc would be problematic. If they try to tell you then I would argue the ACCC or State Fair Trading can act on misleading and deceptive conduct.