Management Rights FAQ's
- Join now and WIN
- New Alert Property Group Booklet
- New Property Occupations Act comes into effect Dec 1
- Can I sell units in my building?
- How hard is it to get my RLA licence?
- I have had my own accountant for years, why do I need to change?
- What extra costs do I have when buying management rights?
- What is an MLR?
- Who is the body corporate committee?
- Why is the licence referred to as "restricted"?
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New Alert Property Group Booklet
- The new Alert Property Group brochure is out!
This new 12 page booklet will be released to the Gold Coast this week.
Keep an eye out for your copy or contact us to get your copy in the post. ^ back to top
New Property Occupations Act comes into effect Dec 1
The real estate world is changing in Queensland
From December 1 industry specific laws will replace the then out dated Property Agents adn Motor Dealers Act, to be replaced by the incoming Property Occupations Act 2014.
What does this mean for you and for us?
Firstly the new Act will simplify the requirements within the industry.
Industry red tape will be reduced and relaxation to licence requirements for developers and agencies are to come into effect.
For the consumer and the agent the single biggest difference is the simplified 1 form for clients to appoint a property agent, as opposed to the 7 forms that currently exist.
Other key changes for property agents include:
1. no longer required to state how they will perform their servies
2. indicate the section of the appointment form that explains the different types of appointments, eg open, sole or exclusive
3. The maximum term of appointment is now 90 days for a sole or exclusive, however these may be terminated after 60 days if needed by the client.
4. End dates no longer required for continuing appointments
5. Deregulated limit on sale commission, meaning agents will be able to negotiate any commission with their clients.
6. Warning Statements no longer required for buyer or sellers with residential property contracts
7. Agents now will also be able to charge commission even though they have beneficial interest in a transaction so long as they declare this to the seller.
8. Buyers no longer require a lawyers certificate to waive or reduce their cooling off period.
These changes along with the single form aims to make the real estate industry more efficient and effective for both the seller and buyer.
You can read more about these changes on our website here
Can I sell units in my building?
Although you are the owner of the building, to participate in the resale of units in your complex you will need a full real estate licence or a sales certificate. If you have a sales certificate you will be required to work under a licenced agency, such as Alert Property Group.^ back to top
How hard is it to get my RLA licence?
To become a Residential Letting Agent you have to be deemed competent after completing a registered training course. Study will typically consist of everything from legal issues to sales and there are plenty of quality training facilities available Australia wide. The courses themselves are relatively academic and even available online if time is an issue. Currently most RLA courses can be completed within a week if you study full time in class. Contact Alert Property Group if you require more information about who runs these courses and their locale.
I have had my own accountant for years, why do I need to change?
Great question and we are asked this regularly. Management rights is a very specific industry which requires specialist attention, whilst your current accountant may be great with your investments, tax and other business, if they have no experience in management rights we strongly recommend you change before you begin the process. Alert Property Group have a panel of accredited management rights accountants.
What extra costs do I have when buying management rights?
Each purchase will attract the usual costs. Your accountant for the financial verification, your solicitor for the legal due diligence, you will have setup costs associated with your finance lending plus any consultant or other professional you may engage. You will also be charged Stamp Duty at settlement with some transfer fees. Alert Property Group recommend your solicitor explains these costs at the time you sign the contract. Typically the industry tends to budget for approx 5 - 6% of the purchase price to cover these costs.^ back to top
What is an MLR?
Sometimes in the industry you will hear the term MLR, this is just an abbreviated term for Management Letting Rights.^ back to top
Who is the body corporate committee?
Every strata scheme must have body corporate committee, these can vary in size depending on the number of lots in the complex however they all consist of the Chairman, Secretary, treasurer and committee members. To be eligible to stand for these positions you must be a valid lot owner within the strata scheme.^ back to top
Why is the licence referred to as "restricted"?
A restricted licence allows you to manage/let units only in your strata scheme (as detailed in your letting agreement). This is NOT a real estate licence and you do not enjoy the freedom of creating a rent roll or engaging in the sale of units as this would require you to extend your licence to either a sales persons or full real estate licence.^ back to top
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