Assignment Clause and your Business

Assignment Clause and your Business

The Queensland Government and Office of Fair Trading, due to much lobbying from the Real Estate Industry, provided real estate agents the option to “Assign” an appointment by Landlord or Vendor with an agent, to a buyer of the business or rent roll.

This action was taken due to the complex nature and regular transactions which are unique to our industry.

Prepare now for the future. Ensure all Form 22a’s, and especially your Appointments to Act with your Landlords (Form 20a), are correctly initialled by the homeowner as accepting the assignment clause within the agreement.

The eventual sale one day of your rent roll is highly likely to include a provision called a “retention clause” whereby any landlords who choose not to transfer the management to the buyer will not be paid for by the purchaser. To limit any potential loss during this period a fully signed listing appointment with the assignment clause completed will be a definite advantage.

Therefore, as the Principal and Business owner, there is significant advantage at the time of sale to ensure the assignment clause is completed. Ensure your team understand the requirements under the provision of the legislation, complete the assignment clause and have the necessary skills to handle any objections a potential landlord or seller may have.

 

Written by Kevin Hockey

 

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