Hi everyone
I've recently purchased an IP in the inner southern suburbs of Brisbane. It's almost ready to be let and I've been interviewing potential property managers in order to find the best deal.
In the negotiations I've asked to include a number of special conditions under Section M of the Property Management Agreement that's normally completed in Queensland. One of the conditions I've asked to be included specifically relates to a clause in the REIQ Form 130 Essential Terms and Conditions that reads as follows:
11.1 The Lessor indemnifies the Agent and therefore must pay the Agent for liability, loss, or costs the Agent suffers or incurs from all actions, claims, demands, damages, and expenses arising out of or in respect of its capacity as Agent of the Lessor.
My solicitor and the Property Owners Association of Queensland have both advised me that this clause is very much in favour of the Agent and could allow them to avoid costs that arose out of some fault or failure to act on the Agent's part.
The condition I proposed to try to limit the liability being imposed on me by Clause 11.1 reads as follows:
The Lessor does not indemnify the Agent for any liability, loss, or cost the Agent suffers or incurs from any action, claim, demand, damage, or expense arising out of or in respect of its capacity as Agent of the Lessor where the action, claim, demand, damage, or expense arises out of failure, fraud, or negligent conduct by the Agent.
At this stage none of the Agent's I've contacted have indicated whether or not they would be prepared to accept this condition.
Can anyone out there comment on whether I am being too pedantic on this. As I am based overseas and this is my first IP I am just looking to protect my rights as much as possible from the outset.
Can anyone suggest an alternative clause that may suit both sides?
Alternatively, does anyone know of a Property Manager who may be prepared to accept a condition such as the one I'm proposing?
Any suggestion or comments greatly appreciated.
Thanks
Paul
I've recently purchased an IP in the inner southern suburbs of Brisbane. It's almost ready to be let and I've been interviewing potential property managers in order to find the best deal.
In the negotiations I've asked to include a number of special conditions under Section M of the Property Management Agreement that's normally completed in Queensland. One of the conditions I've asked to be included specifically relates to a clause in the REIQ Form 130 Essential Terms and Conditions that reads as follows:
11.1 The Lessor indemnifies the Agent and therefore must pay the Agent for liability, loss, or costs the Agent suffers or incurs from all actions, claims, demands, damages, and expenses arising out of or in respect of its capacity as Agent of the Lessor.
My solicitor and the Property Owners Association of Queensland have both advised me that this clause is very much in favour of the Agent and could allow them to avoid costs that arose out of some fault or failure to act on the Agent's part.
The condition I proposed to try to limit the liability being imposed on me by Clause 11.1 reads as follows:
The Lessor does not indemnify the Agent for any liability, loss, or cost the Agent suffers or incurs from any action, claim, demand, damage, or expense arising out of or in respect of its capacity as Agent of the Lessor where the action, claim, demand, damage, or expense arises out of failure, fraud, or negligent conduct by the Agent.
At this stage none of the Agent's I've contacted have indicated whether or not they would be prepared to accept this condition.
Can anyone out there comment on whether I am being too pedantic on this. As I am based overseas and this is my first IP I am just looking to protect my rights as much as possible from the outset.
Can anyone suggest an alternative clause that may suit both sides?
Alternatively, does anyone know of a Property Manager who may be prepared to accept a condition such as the one I'm proposing?
Any suggestion or comments greatly appreciated.
Thanks
Paul