Terminating Property Management Contract - WA - Fundamental Breach

Discussion in 'Property Management' started by Bindi83, 14th Dec, 2016.

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  1. Bindi83

    Bindi83 New Member

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    Could anyone please provide advice in regards to what would constitute a "Fundamental Breach" in relation to grounds to terminate a Property Management agreement in WA. We have earlier this year engaged a Property Manager for a new rental, however are devastated to discover they failed to complete the PCR with the tenant until 3 months into the lease, along with a failure to complete 6 week initial inspection. The condition of the property reflected in the report is now different to what it would have been at the beginning of the tenancy, and also the loss of faith in the PM leaves us needing to terminate and find a Property Manager we can trust.
    Any advice would be appreciated.
     
  2. thatbum

    thatbum Well-Known Member

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    Starting point: Have you asked them to terminate? What did they say?
     
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  3. Perthguy

    Perthguy Well-Known Member

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    What does your contract say? It's been a while since I have seen one so I don't recall the specific provisions.
     
  4. Bindi83

    Bindi83 New Member

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    Unfortunately the wording is the basic for WA Contracts - "the lessor without giving prior notice should the property manager have been guilty of a fundamental breach of the terms of agreement." There is a condition for the lessor to pay liquidated damages if the contract termination is "wrongful", there for we are hoping someone may have some experience or understanding of what 'Fundamental Breach' includes...
     
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  5. Bindi83

    Bindi83 New Member

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    We are yet to do so, as there is an ongoing management issue which we have been trying to resolve prior to termination. We also want to try to understand our grounding before we raise the item, as once it is raised there is no going back :)
     
  6. Perthguy

    Perthguy Well-Known Member

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    Which term or terms of the agreement do you believe they have fundamentally breached?

    Consumer protection may be to able provide some guidance on your rights (if any).
     
  7. thatbum

    thatbum Well-Known Member

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    To be honest, I don't quite understand your strategy with this. If I have an issue with a PM service, I don't see the issue with letting them know my concerns. If you're worried about the repercussions in terms of continued service with them, then surely that would add to your grounds to terminate anyway.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    I agree with this. The contract says that if you have a problem with the PM service you need to seek in writing for them to rectify the issue. If the issue or issues are ongoing for 28 days you can terminate anyway. I would put my concerns in writing and ask for them to be addressed, follow up in writing and keep records of your correspondence and any responses. If there are unresolved issues after 28 days, you may have grounds to terminate.
     
  9. Phase2

    Phase2 Well-Known Member

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    Do you mean there is a separate issue that you're trying to resolve, without raising the issue of the inspections? Is it outstanding fees or money owing to you?

    You can't resolve anything without an open and honest discussion. See what your contract says. There's no such thing as a fundamental breach. It's either a breach or it isn't. Did you take photos of your place before you handed over to your PM? Will your landlord insurance cover any damage?

    My current PM contract is month-month. If I'm not happy I give 28 days notice and that's it. So far I'm happy enough. :)
     
  10. chibs

    chibs Well-Known Member

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    If it helps, I went through this process before. I submitted a complaint to Dept of Commerce for what I think was "fundamental breach" conducted by our previous PM which has cost us some financial loss. Just know that they will not pursue minor disputes for you. They didn't bother with ours. It's probably best to communicate your issues with the PM directly. You can still call and ask Dept of Commerce for advice though.
     
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