"Rental Agency Agreements, SA"

From: Duncan M


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In SA, Management Agreements are generally for 12months, 21 days prior to
end of the period if the Landlord does nothing it lapses from a Sole Agency
Agreement to a General Agency Agreement (requiring 60 days notice to
terminate)..

Yesterday we received a request from our Agent to renew our agreements to
turn them back into Sole Agency agreements for 12months. With Sole Agency
agreements the contract can only be terminated if BOTH parties agree or if
no Tenants have been found for the specified start-up period.

It was a somewhat underhanded letter, they've always been happy to leave us
on General Agency agreements and we've noticed them advertising over a
number of weeks for a new Property Manager, so I guess the principal in the
agency is a little skittish about how many properties he might lose given
that generally Landlords sign up to a specific Property Manager rather than
an Agency in general.. Needless to say, the request got filed in the bin, it
was slightlt odiously worded "We therefore require your signature below",
quite deliberately an attempt to convince it was all just standard procedure
and we should just sign.

What it did prompt me to do was re-read the Agency agreement that we had
previously signed (standard Real Estate Institute of SA contract).. It
occured to me after reading it how loose and fluffily the obligations of the
agent are laid out, there's a very comprehensive section that appears to
give you some confidence that they have a whole range of obligations to you,
but in fact the entire section is prefaced by words to the effect of "The
Landlord Authorises the agent to".. in effect, the Contract doesnt actually
require them to do anything in particular with regards to frequency of
inspection, promptly dealing with late rent etc..

So, the point of this post is to say, Standard Contracts aren't Tablets of
Stone when you sign a Sales Agreement or Management Agreement, feel free to
strike out clauses, put your own in, change the wording of clauses and
generally do whatever you feel need to in order to have a contract or
agreement that YOU are happy with.. in fact attach your own page if you
want, with conditions such as:

"The agent shall conduct an inspection every 6 months and provide a
comprehensive written report".
"The agent shall within 48 hours of a late rental payment serve <appropriate
form> on the Tenant by registered mail"

Make sure that you follow it all with something along the lines of "The
Agent agrees that the Landlord may terminate this Management Agreement
without prejudice if the Agent fails to fulfil their obligations outlined in
clauses x,y,z, etc"..

In fact, take the damn thing to a Solicitor and let him massacre it, you'll
only have to pay for it once.


Duncan.








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<TITLE>Rental Agency Agreements, SA</TITLE>



In SA, Management Agreements are generally for =12months, 21 days prior to end of the period if the Landlord does =nothing it lapses from a Sole Agency Agreement to a General Agency =Agreement (requiring 60 days notice to terminate)..

Yesterday we received a request from our Agent to =renew our agreements to turn them back into Sole Agency agreements for =12months. With Sole Agency agreements the contract can only be =terminated if BOTH parties agree or if no Tenants have been found for =the specified start-up period.

It was a somewhat underhanded letter, they've always =been happy to leave us on General Agency agreements and we've noticed =them advertising over a number of weeks for a new Property Manager, so =I guess the principal in the agency is a little skittish about how many =properties he might lose given that generally Landlords sign up to a =specific Property Manager rather than an Agency in general.. Needless =to say, the request got filed in the bin, it was slightlt odiously =worded "We therefore require your signature below", quite =deliberately an attempt to convince it was all just standard procedure =and we should just sign.

What it did prompt me to do was re-read the Agency =agreement that we had previously signed (standard Real Estate Institute =of SA contract).. It occured to me after reading it how loose and =fluffily the obligations of the agent are laid out, there's a very =comprehensive section that appears to give you some confidence that =they have a whole range of obligations to you, but in fact the entire =section is prefaced by words to the effect of "The Landlord =Authorises the agent to".. in effect, the Contract doesnt actually =require them to do anything in particular with regards to frequency of =inspection, promptly dealing with late rent etc..

So, the point of this post is to say, Standard =Contracts aren't Tablets of Stone when you sign a Sales Agreement or =Management Agreement, feel free to strike out clauses, put your own in, =change the wording of clauses and generally do whatever you feel need =to in order to have a contract or agreement that YOU are happy with.. =in fact attach your own page if you want, with conditions such =as:

"The agent shall conduct an inspection every 6 =months and provide a comprehensive written report".
"The agent shall within 48 hours of a late =rental payment serve <appropriate form> on the Tenant by =registered mail"


Make sure that you follow it all with something along =the lines of "The Agent agrees that the Landlord may terminate =this Management Agreement without prejudice if the Agent fails to =fulfil their obligations outlined in clauses x,y,z, =etc"..

In fact, take the damn thing to a Solicitor and let =him massacre it, you'll only have to pay for it once.



Duncan.










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