Assignment of Letting Appointments

Most resident unit managers would be aware that there have been some recent amendments to the Property Agents and Motor Dealers Act (PAMDA) (which took effect from 21st August 2006). 

The good news is that the PAMDA now clearly allows for the assignment of letting appointments and this is, thankfully, no longer a very “grey” area of the law.

However there is a procedure to be followed!

If the letting appointments do not provide for their assignment, the procedure in the PAMDA must be followed.  This requires the vendor to obtain the written consent of each owner to the assignment.  To do this the vendor needs to give a notice to each owner at least 14 days before settlement.  It is a requirement of the PAMDA that the notice include a statement that the owners may refuse to agree to the proposed assignment.

As all resident unit managers know, it can be difficult to get some owners to respond to anything, which may make the process of obtaining their written consent to the assignment of the letting appointment tediously slow.

If the letting appointment itself allows for assignment by the agent then the PAMDA states that the procedure in the appointment must be followed.

We are recommending to current managers that they review their appointments now (before they sell) and amend them, if necessary, to allow the automatic assignment to any person who is approved by the body corporate to be the letting agent.  By reviewing appointments now you will save yourself any unnecessary delays when it comes time to sell your management rights!

This article is a guide only and is not legal advice. We strongly recommend that you consult your solicitor to take independent advice regarding the issues addressed in this article.