Settlement day is when you get the keys, but the handover takes a few more weeks. Until it's done, you're running a business whose owners, tenants and committee may not know who you are yet. Here's a practical checklist for Queensland buyers and sellers of management rights, based on the Body Corporate and Community Management Act 1997 (BCCM Act), its regulation modules, the Property Occupations Act 2014 (PO Act) and the Residential Tenancies and Rooming Accommodation Act 2008 (RTRA Act).<\/p>\n
Caretaking and letting rights can only be transferred if the body corporate approves the transfer (Standard Module s 143; Accommodation Module s 133). The committee can decide by resolution. It can consider your character, financial standing, the terms of the transfer, and your competence, qualifications, experience and training. It must decide within 30 days after it receives the information reasonably necessary to decide. It must not unreasonably withhold approval or charge a fee, other than reimbursement of reasonable expenses. Approval can be conditional on you signing a deed of covenant to comply with the agreements, so keep a signed copy with the approval resolution. Engagements can't be transferred under the Small Schemes, Specified Two-lot Schemes or Commercial modules.<\/p>\n
When a resident letting agent assigns the letting appointments to the buyer, the buyer must give each client written notice within 14 days after the assignment (PO Act s 113). The notice must give your name and contact details and your registered office address. It must say the appointment was assigned without changing its terms, and that the owner can revoke it with at least 30 days' written notice. The maximum penalty is 100 penalty units. You can't vary the terms without the owner's agreement. Your registered office must also be in the building complex (PO Act s 86), and you need your own licence to let lots and collect rent (PO Act s 27).<\/p>\n
If the agent details a tenant was given change, written notice of the change must go to the tenant within 14 days (RTRA Act s 206). A pet approval continues for the life of the pet and isn't affected by a change of lessor's agent (RTRA Act s 184G), so carry over the approval records too.<\/p>\n
Do a physical key and fob count against the key register. Sign for master keys and plant room access. Get the contractor list with each contractor's licences, insurances, rates and service dates. Check the caretaking agreement's schedule of duties against the actual cleaning, grounds, pool and maintenance rosters. From day one you're bound by the Schedule 2 code (caretaking) and Schedule 3 code (letting): act honestly, fairly and professionally, use reasonable skill, care and diligence, and keep the body corporate informed of significant issues.<\/p>\n
Get current certificates of currency for the insurances your agreement requires, such as public liability and workers' compensation, and give copies to the committee. The body corporate's own public risk cover (at least $10m under Standard Module s 206) covers the body corporate, not your business.<\/p>\n
Ask the seller for a written list of open matters: resident complaints, contravention notices, BCCM conciliation or adjudication applications, QCAT proceedings, outstanding work orders and any committee concerns about performance. Raise them with the committee early, in writing.<\/p>\n
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