Selling, but no copies of lease to include with the sales contract?

I'm selling two properties, both of which have excellent tenants.

My problem is I don't have copies of the lease for the sale contract.

One property has had the same tenants since 2013 and started on a 12 month lease which has rolled into a periodic for the last 4 years.

The other property got it's current tenants on a 12 month lease in March 2017 so has rolled onto periodic about 6 months ago.

Long story short, early 2017 the PM merged with another agency. I never had the original leases form the first PM and shortly after the merger the original PM completely disappeared, as in gone, vanished, very VERY hard to track down (as I subsequently found out when trying to put an insurance claim in and needing some old info from him).

It is looking like they may not have passed on the file copy of the leases to the new agent, so no one (other than possibly the tenants) actually have a copy I can get hold of.

If the current PM can't get hold of the old one and get the file copies, I'm wondering what my options are in terms of a lease for the sale contract.

Can we draw up a new lease with the original terms and ask the tenants to sign it? I guess they could refuse.

If we draw up a new periodic lease starting from today's date say, would that be legal? (and assuming the tenants are happy to sign it), does that then have insurance implications as classed a new periodic lease and not a roll over from a fixed lease?

Not sure what my options are if we can't get copies of the originals.

Thanks.

 

When I submit for the annual audit, my auditor wants copies of every lease under management (overkill IMHO). As a last resort, the PM could ask the tenant for a copy.

 

Audit of what ?? You a PM ?

 

Thats poor compliance on the part of any PM. Appear in a tribunal and the tenant disputes the terms re unpaid rent. Then what ? For any PM its probably the most important document and a process for rent review that is tied to it.

 

@Propagate I've no idea if this would work, but ask your conveyancer if some of these ideas would work?

A statutory declaration stating the rental income? It could even be worded to say that the witness has sighted bank credits to an account from the tenant.

Evidence of rent via bond lodgement receipt?

 

Thanks @Peter_Tersteeg I'd thought maybe a stat dec, but you bring up another good point there - the old PM will also have the bond receipt!!

I've also asked our solicitor if they've got any bright ideas.

It's one of those hindsight things, I assumed the whole property file would have been handed over when the PM's merged (he was a great PM by the way during the time he was one, not sure what happened to him). Not until you need something you find out it's an issue.

For anyone else reading perhaps check if you've got copies of your leases, and if not, request copies now so you've time to get them in order if you ever need them.

 

Holy moly....mine checks 6 or 7 random files

What does your solicitor suggest? I'm sure it's not the first time they've had this happen.

 

They haven't got back to me yet.

 

Don't worry about it too much, wait for them to get back to you and if there's an issue get your PM to sort it out. If your managing agency is the same as the selling agency they'll bend over backwards to get it sorted for you.

 

Different agencies. Trying to put it out of mind, had a tough time selling a UK property recently, that just settled 2 weeks ago and now trying to sell two interstate plus mobbed at work so I've been running on stress and adrenaline the last couple of months, (plus I'm not great at sitting back and letting the people you pay to do things for you get on with it and do those things for you, I'm my own worst enemy at times).

Like the old saying I guess, no one looks after you own interests better than you.

 

Need to go for a run to relieve the stress buddy !!!!

 

Oh well.... wait for your solicitor to get back to you.
Just make sure your PM does not sign them up to a new lease. That will count out 50% (or more) of your 'buyers pool'. Most owner occupiers will want to move in after settlement.

The no lease thing isn't a big deal with regards to the sale, your solicitor will sort it out.
But the PM should have been onto it a long time ago.


You're right though, no one looks after you own interests better than you do.


I have PM's in Brisbane looking after my IP's and they're reasonably good. But they know I own a commercial agency in Sydney and take a little more active role than most LL.