Termination of Notice ... can someone please explain?

Discussion in 'Property Management' started by tempura, 10th Nov, 2014.

  1. tempura

    tempura Member

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    Very noob in this sort of situation.

    I'm the landlord and I just signed up an Exclusive Management Agency Agreement Residential (Short Version) REINSW.

    In the Agreement section point #2 ... The Agreement shall commence on the blah and may be terminated by either party giving not less than 120 days written notice of termination but without prejudice to any accrued rights or incurred obligations.

    What does the above mean?

    Is this the rule of termination between me and the agency, or between me and the tenant?

    I've got this tenant lease expiry date which will fall on Mid April 2015 and basically I don't want them to extend because we will be moving-in to the property.

    If I calculated 120 calendar days prior to mid April 2015, that will take me to 16 December 2014 but was advised by the agent that this is not the case (this is not the way I should calculate it) and was advised to put in diary for start of February 2015 to give notice of termination.

    I'm confused .. can someone enlighten me please?
     
  2. YCPM

    YCPM Member

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    You need to give the Management Agency 120 days to terminate the agreement with them; this being your December date.

    This is a separate issue to the tenants notice that you won't be renewing.

    Regards
    Chris
     
  3. sanj

    sanj Member

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    The above response is correct. 120 is a long time though.

    In future I'd suggest you read through any all all contracts thoroughly and ask all questions before you sign because there's not much you can do about it now.
     
  4. tempura

    tempura Member

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    Thanks Chris!

    Funny that the agent advised me to put on diary for February 2015 for notice of termination. Why would he said such thing? How would this benefit him?

    Does this mean that I need to issue separate notice of termination to the tenants? This sounds a bit weird, considering I'm still paying the agent as my property manager; wouldn't he be the one who send out the notice of termination to the tenants?
     
  5. tempura

    tempura Member

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    120 days is still achievable, considering December 2014 is still in the future and not past.
     
  6. luckyone

    luckyone 2 down 8 to go.

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    120 days termination notice? Tell 'em they're dreaming!
     
  7. Propertunity

    Propertunity Real Estate Buyers Agent

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    It is between you and the agent.

    Bear in mind, notwithstanding the 120 day notice period that you signed up to, is not all that relevant if you will be moving into the property. The REA is only entitled to claim a % commission on the rent collected and there will be none collected once you move in.
     
  8. hobo

    hobo Member

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    I believe what the agent meant was, "please remind me then so I actually do it". :rolleyes: I'd ask that he put it in HIS diary and effect the termination at the appropriate time (but then you might still need to do a follow-up check because ultimately, it's you that is affected).

    Your agent should be able to do this on your behalf.

    I think what sanj meant was, the 120 days notice that the agency requires you to give (ie to the agency) that you no longer wish to utilise their services, is unusually long compared to other agencies' policies, and if you are entering into a management agreement in the future, it may be worth you checking the contract for unusual / onerous clauses such as this. This period is not relevant if you move in yourself after this tenant leaves.

    The period of notice you are required to give to the tenant is a different thing.

    (Apologies to sanj if I have misspoke. :) )
     
  9. Salvatore1

    Salvatore1 Member

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    As mentioned above the 120 days notice (which is a lot) is the notice period you need to give the managing agent if you wanted to stop using them or change to another agent. As per the residential lease your agent will need to gove the tenant 30 days notice before the last day of the lease for vacant possession and allow 4 work days for postage. To be safe email your agent 2 mths before the end of the lease and inform them that you want vacant possession at the end of the lease and ensure he sends you a copy of the letter forwrded to the tenant
     
  10. tempura

    tempura Member

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    This is exactly what we intended to do. So, are you saying 120 days are not applicable to us?

    Quoted from http://www.fairtrading.nsw.gov.au/f...ng_a_tenancy/Giving_a_termination_notice.page

    The minimum period of notice you can give the tenant to vacate is:
    14 days ? if the tenant is 14 days or more behind with the rent or has committed some other breach of the tenancy agreement
    30 days ? if the fixed term of the agreement is due to end
    30 days ? if the premises have been sold after the fixed term has ended and vacant possession is required by the buyer under the terms of the sale contract
    90 days ? if the fixed term period has expired and no new agreement has been signed.


    Will this be the x days I should be giving them notice? It looks like 90 days in my circumstances .. I would assume this is 90 calendar days and not working/business days?
     
  11. Salvatore1

    Salvatore1 Member

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    Sorry, I thought I read that the tenant was in a lease period and the end of his lease was in Feb 2015?
     
  12. Salvatore1

    Salvatore1 Member

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    I've got this tenant lease expiry date which will fall on Mid April 2015 and basically I don't want them to extend because we will be moving-in to the property.[/QUOTE]

    If Lease expiry is Mid April then you only need to give them 30 days. 90 days if continuous lease?

    Is your property in NSW? These are NSW laws
     
  13. tempura

    tempura Member

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    Not sure which one we will fall into ....

    The property was sold to us half way the tenancy and you are perfectly correct, this tenant lease expiry is mid April 2015.

    30 days - if the fixed term of the agreement is due to end
    30 days - if the premises have been sold after the fixed term has ended and vacant possession is required by the buyer under the terms of the sale contract
    90 days - if the fixed term period has expired and no new agreement has been signed.

    I think you're right, Salvatore ... it looks like 30 days for us.

    The property is in NSW.
     
  14. Of The Vultures

    Of The Vultures Member

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    Why do you think it's 90 days? You mentioned you have a lease expiry date coming up in April 2015, so from the scenarios you quoted, the applicable one would be the 30 day notice to the tenant. It's 90 days if it's not a fixed lease.

    Again, this is totally separate to the 120 days notice you have in your management agreement. That, as others have already mentioned, refers to how much notice you have to give the agent if you want to change to a different agent. It's quite long, usually I see them asking for 30 days and I always cross it out and put 14 instead. In any case, I don't think they'll hold you to it since you're not going to be changing agents, but moving into the property yourself. But I'd give them plenty of notice of your intentions regardless.
     
  15. pully

    pully Member

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    yes the management agreement between landlord and agent is separate to the 1 between landlord and tenant.

    another question could arise if a landlord signs with an agency say 10yrs prior and the rent roll is sold to another agency, the terms and conditions of the 1st contract maybe different to the new agency?

    if no new contract was signed or offered would the original 1 and its terms/conditions apply? also is it different if the termination is to sell the property rather than change agencies?