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Obligation to existing PM on purchase?

Discussion in 'Property Management' started by Toon, 28th Aug, 2015.

  1. Toon

    Toon Well-Known Member

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    If a property is tenanted on purchase, is the buyer obligated to continue with the existing PM or is it OK to switch to a preferred PM on settlement? A place I have been watching for a while that is vacant has now also been listed for rent with a PM in Brisbane when the property is on the Sunshine Coast. While I'm not opposed to the possibility of tenanted rather than vacant possession, I can't see how a PM so far away could be the best option.
     
  2. thatbum

    thatbum Well-Known Member

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    No obligation.
     
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  3. Toon

    Toon Well-Known Member

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    That's a relief!
     
  4. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    No obligation but make sure you have a property manager signed up before it gets close to settlement. Only happened to me once but I pre told the selling agency that another local real estate would be taking over, the day it settled he notified my agency that his previous agency found him another place. They stole him so be careful of that
     
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  5. Esh

    Esh Well-Known Member

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    No obligation. The pm agreement is signed by the previous owner, only obligation is to the tenant
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    No obligation

    The lease continues as is, but the management agreement does not. Go sign one with your chosen PM.

    The new PM will need to transfer the existing bond to their agency, collect keys and documentation such as the lease, ingoing inspection report, ledger, etc
     
  7. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Dear Toon,
    also consider obtaining an original ingoing inspection report to protect yourself when the tenant leaves, and rental payment ledger to make sure. Also the original lease, so if there is any dispute you have the documents to confirm.
    I hope this helps
     
  8. Azazel

    Azazel Well-Known Member

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    It's Ok to flirt with them if it suits your purpose during negotiation. But you don't have to marry them ;)
     
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