What you get when you buy -
Published: 30 August 2006.
You are buying the rights contained in contracts with the body corporate. These contracts differ from building to building. Sometimes all the rights are in one contract. In other cases, caretaking and letting are dealt with separately.
When you purchase management rights, you take a transfer or an assignment of the rights under those agreements. You will buy either from the developer or from an outgoing manager.
Usually you will also buy:
- The manager's unit
- The right to occupy an office/reception area if there is not one contained within the freehold title of the manager's unit, and
- The plant and equipment necessary to run the letting office and do the caretaking work.
NSW management rights
Management rights exist in NSW and are becoming more common, particularly in the northern beaches from Tweed Heads down and the newer strata titled property developments in Sydney.
In many ways the NSW industry mirrors the Queensland industry. However, the history of the industry is not as long and, consequently, the statutory framework is not as well developed. Instead of obtaining a restricted letting agent's licence, a resident unit manager must obtain an on site residential property manager licence.
The educational requirements are similar to those in Queensland.
New Zealand management rights
Management rights are currently possible in New Zealand but there is little legislation governing their existence.
Recent reports indicate New Zealand management rights are being structured like those in Queensland in anticipation the legislative framework which governs management rights in Queensland will soon be adopted.
The major piece of legislation enabling management rights in New Zealand is the Real Estate Agents Act 1976. Under this legislation, everyone who acts as a real estate agent is required to obtain a real estate agent's licence, including letting agents for strata titled property such as resident unit managers.
Generally these licensing requirements impose heavy educational and experience guidelines, which are difficult to satisfy except by long serving real estate industry professionals.
However, current New Zealand legislation offers those who want to run management rights the opportunity to have the experience and educational guidelines relaxed as the body charged with licensing real estate agents in New Zealand can issue a permit to an applicant enabling them to carry on the specific business of running letting in one particular strata property.
This avoids the need for a full licence and makes management rights more accessible to prospective purchasers.
