Contract Meanings in PM Agreement

[Luv2Travel]

I know this is a dumb question and I should know the answer, but I'm about to change property managers and want to know when I can do this. I don't know what the following mean:

Exclusive Authority Period for Leasing : 90 days
Continuing Authority Period for Leasing : 30 days

Does this mean they have my property for 90 days to find a tenant from the date of signing contract? This was signed over a year ago, so this time is well and truly up (although a new tenant has just gone in on a break lease). Does the 30 days mean, I have to give them 30 days notice to leave?

 

[JamesGG]

Has the agent given you a full copy of the authority? In often faded letters on the reverse of each page, there will usually be fine print explaining what each part of the contract means.

For exclusive authorities drawn up by the REIV, it usually looks something like this (forgive the long quote, but it's worth reading in full);

Item 1. Agent’s Entitlement to Commission

The Agent will endeavour to lease the property (to the extent set out on the Agent’s Authorisation) in consideration of which the Client agrees to pay the Agent’s fees if the property is leased -

i. during the Exclusive Authority Period by the Agent or by another person (including the Client or another Agent) for the Price and upon the above conditions; or
ii during the Continuing Authority Period by the Agent; or
iii to a person introduced to the property by the Agent before the Client signed this Appointment; or
iv within 120 days after the expiration of the Exclusive Authority Period for the Price and on the above conditions to a person introduced to the property within the Exclusive Authority period and to whom, as a result of the introduction, the property is leased.

Items 1(ii), (iii) and (iv) shall not apply where the Client has incurred a liability to pay Agent’s Commission under any Exclusive Agency agreement signed by the Client with another Agent after the expiration of the Exclusive Authority Period.

*The Agent will manage the property and the client shall pay the managing fee as set out in this Authority.

* If the agent leases the property during the Exclusive Authority Period or during the Continuing Authority Period, the Client authorises the Agent to subsequently re-lease the property to the initial tenant (or the assignee of the initial tenant) or to subsequently re-lease the property to a new tenant and will pay the Agent’s fees notwithstanding that such re-leasing or leasing may take place after the Exclusive Authority Period for leasing and the Continuing Authority Period for leasing (if any) set out in this Authority may have expired.

* The Agent will manage the property and the Client shall pay the managing fee as set out in this Authority for the period during which the Agent manages the property including any period beyond the Exclusive Period for Leasing and the Continuing Authority Period for Leasing (if any) set out in this Authority.


Item 2. Continuing Authority Period

If the property is not leased during the Exclusive Authority Period and a Continuing Authority Period is stated in the Particulars of Appointment then the Client appoints the Agent to lease the property on a Non-Exclusive Agency basis for the Continuing Authority Period.

The Client may terminate or delete the Continuing Authority Period at any time by written Notice to the Agent. Item 1 is still applicable to this Authority even if the Continuing Authority Period does not apply or ceases.

In consideration of the Agent agreeing to endeavour to lease the property the Client will pay the Agent the Agent’s Commission if the Property is leased by the Agent for the Price at any time during the Continuing Authority Period except where the Client has incurred a liability to pay the Agent’s Commission under any Exclusive Agency agreement signed by the Client with another Agent after the expiration of the Exclusive Authority Period shown in this Authority.

If no Continuing Authority Period is stated in the Particulars of Appointment the Authority lapses (subject to Item 1(ii), (iii) and (iv) above) at the expiration of the Exclusive Authority Period shown in this Authority.

I've bolded the sections particularly relevant for you. In short, you're giving them 90 days to lease the property regardless of where the tenant comes from, plus another 30 days to keep trying beyond that period unless you tell them otherwise.

It's not uncommon to give 30 days exclusive with zero continuing authority. They shouldn't need any more than that anyway.


Edit; Sorry, just realised that I phrased the response in terms of your new agent, not the old one... oops.

The old one can be ditched immediately, unless there's something in your (custom?) contract about a particular notice period. Usually, the contract will state that There is no Exclusive Agency Period for Managing the property.

 

[Luv2Travel]

Thanks James.

They're the only two periods I can see in the contract, so not sure what notice I have to give them to leave then, this is why I'm confused and thought the continuing one must have meant that. After signing the contract 18 months ago, they did find a tenant within the exclusive period, then re-signed these same tenants a couple of months ago. A new tenant has taken over the break lease just recently. I might just need to talk to them, once I'm satisfied everything has been done and received by me. I don't want to give them notice until everything's sorted in case they decide not to bother with what is left to be done.