Help evaluating Managing Agency Agreement

[Nibbles55]

I am currently choosing between two possible new PMs - not much to separate them in terms of cost and service. However, one firm uses the REINSW standard one page agreement, and the other has a 7 page agreement heavy on small print and legal matters.

My main concern is the following clause (I'm abbreviating a bit): "I warrant that the Property is not in a dangerous condition and that if any condition comes to my knowledge I will notify the Agent immediately.....and if any damage occurs to any person because of the dangerous condition of the Property, I will indemnify the Agent and any sub-contractors against all legal claims which may arise".

The property is not currently in a dangerous condition, but it seems to me that if, for example, their electrician installed a new outlet in such a way that it electrocuted the tenant (worst case scenario), then I would be the party who was sued, despite being well-removed from actual responsibility. Should I try to have this struck off the agreement?

I do have landlord's insurance, but my policy will not pay if a situation arises because of someone else's negligence or omission.

 

[Scott No Mates]

I would also be game to run the management agreement past the insurer to check if there is anything else which would affect your right to claim.

 

[Nibbles55]

Good idea Scott - I will talk to the insurer (NRMA) and if it's an issue I will try to get that clause struck off. If the agent won't remove the clause, it makes my decision easier, I guess. I have decided that any agent I choose will effectively be on probation for 6 months to see how things go and I will move on if necessary. I have been way too trusting in the past, to my cost.

 

[twobobsworth]

7 pages in addition to the standard contract, just move on.

 

[Propertunity]

My main concern is the following clause (I'm abbreviating a bit): "I warrant that the Property is not in a dangerous condition and that if any condition comes to my knowledge I will notify the Agent immediately.....and if any damage occurs to any person because of the dangerous condition of the Property, I will indemnify the Agent and any sub-contractors against all legal claims which may arise".

This probably came about after the court-case where a rotten deck was found to have contributed to the death of a baby. The LL and the REA were both found to be at fault. Either way, you will see more and more of these clauses arising due to people in general becoming more litigious by nature.

 

[Nibbles55]

Thanks for everyone's input. I am going to suggest a rewording of this clause to make it clearer that my liability is only for conditions I could be reasonably expected to know about; that is, something I have been told directly and failed to act on.

Propertunity, the baby who died in Qld was the granddaughter of an old school friend of mine, and their grief will never go away.