The new Property Occupations Act 2014 brings changes that can affect the way assignments are handled.
The First change is that the new appointment Form 6 does not have any provisions in regard to the assignment.
All appointments are now assignable.
Looking at the new legislation there has been a dramatic change to how we handle assignments. Section 113 (2) of the Property Occupations Act 2014 states “The assignee must give each client written notice of the assignment within 14 days after the assignment”.
This potentially allows, in the case of a rent roll sale, for appointments to be transferred to a buyer without a Landlords knowledge, agreement or acceptance. The buyer would then be responsible for notifying the Landlords of the sale and transfer of the appointment.
It would be Best Practice of Real Estate Agency Sales that to follow this course of action would be extremely detrimental to all parties and that the Seller should always notify the Landlord prior to settlement and provide to the Buyer proof of notification of the sale or transfer of appointments.
The Landlord should always be notified prior to settlement of the transfer of their appointment and for the Seller to discuss with the property owner any questions or concerns they may have as well as the benefits for the Landlord in transferring to the new Agency.
To discuss further, please contact Kevin Hockey at Real Estate Agency Sales on 0413 879 986 or email firstname.lastname@example.org