The following content represent industry standard Terms and Conditions regarding a typical Property Management Agreement between an owner and an Agent:

Lessor Appoints Agent

 For the commissions and other fees payable by the Lessor, the Agent agrees to tmanage the Property for the Lessor in accordance with the Essential Terms and Conditions in this Agreement.

 What Makes Up This Agreement:

 This Agreement comprises the following parts in order of priority:

2.1 Appointment of Agent

2.2 Property Management Schedule

2.3 Essential Terms and Conditions

 Definitions

3.1 Appointment of Agent means the Queensland Government PAMD Form 20a Appointment of Agent - Letting and Property Management. These terms and conditions and the Schedule are annexed to the Appointment of Agent.

3.2 Commission means the commission mentioned in Part 5 of the Appointment of Agent and which is detailed in Item C of the Schedule.

3.3 Condition Report means a report which conforms either to section 65 and 66 (as the case may be) of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld).

3.4 General Tenancy Agreement means the current standard RTA General Tenancy Agreement conforming to the requirements of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) or such other tenancy agreement

3.5 Lessor includes the registered owner of the Property and also

 means "the Client", mentioned in the Appointment of Agent.

3.6 Property means the property described in Part 3 of the

Appointment of Agent and includes "the Premises".

3.7 Relevant Legislation includes:

·        the Residential Tenancies and Rooming Accommodation Act 2008 (Qld)

·        the Body Corporate and Community ManagementAct1997(Qld)

·        the Property Law Act 1974 (Qld)

·        the Workplace Health and Safety Act 1995 (Qld)

·        the Building Act 1975 (Qld)

·        the Building Code of Australia

·        the Anti-Discrimination Act 1991(Qld)

·        the Trade Practices Act 1974 (Cth)

·        the Fair Trading Act 1989 (Qld)

·        Fire and Rescue Service Act 1990 (Qld) and

·        the Property Agents and Motor Dealers Act 2000 (Qld) as amended or replaced from time to time.

 

3.8 RTA means the Residential Tenancies Authority.

3.9 Schedule means the Property Management Schedule.

3.10 Tenant means a person(s) with whom the Lessor has entered into a General Tenancy Agreement for the letting of the Property.

 Lessor's Obligations

 The Lessor must:

4.1 to the extent permitted by law, revoke in writing and finalize any pre-existing appointment given to any other agent to let or to manage the Property;

4.2 not let or manage the Property as principal, or appoint any person to let or manage the Property other than the Agent for the term of this Agreement;

4.3 refer to the Agent any prospective tenant(s) that contacts the Lessor;

4.4 immediately inform the Agent of any changes concerning the Property;

4.5 meet all obligations imposed by Relevant Legislation and any General Tenancy Agreement entered into by the Lessor with a Tenant;

4.6 unless otherwise stated in Items F and G of the Schedule, pay all charges, levies, premiums, rates or taxes for the Property other than a service charge;

For example: Body Corporate levies, council general rates, sewerage charges and environment levies and land tax;

4.7 pay all commissions, fees and expenses specified in Items C, D and E of the Schedule to the Agent.

4.7.1 with respect to the commission payable for the letting of the Property, upon the Lessor's entry into a tenancy agreement for the Property with a Tenant procured by the Agent; and

4.7.2 with respect to the commission, fees and expenses payable for the rent collection and management of the Property, when the rent, to be collected by the Agent, periodically falls due to be paid by the Tenant.

4.8 pay for the installation of the first telephone line to the Property; 4.9 pay for all repairs and maintenance;

4.10 promptly give instructions to the Agent when requested to do so by the Agent;

4.11 immediately notify the Agent of any changes to the contact details specified in Part 1 of the Appointment of Agent;

4.12 supply and maintain all locks necessary to ensure the Property are reasonably secure, and at the Lessor's cost, provide a key for each lock to the Tenant and Agent, and if there is more than one tenant, provide to each further Tenant a key for each lock that secures an entry to the Property or secures a road or other place that is normally used to gain access to, or leave, the area or building in which the Property are situated;

4.13 observe the terms of any General Tenancy Agreement made by the Agent on behalf of the Lessor;

4.14 have the Property treated for pests as required (no more than annually) at the Lessor's cost;

4.15 obtain and maintain insurance policies for:

4.15.1 public liability providing covert o a minimum of $10 million;

4.15.2 provide to the Agent, upon request (no more than annually), a certificate of currency of the insurance taken out in accordance with Clause 4.15.1;

4.16 if the Lessor decides to sell the Property, advise the Agent in writing that the Property is for sale and identify the real estate agent/s with whom the Property is listed for sale;

4.17 negotiate with the Body Corporate to ensure full co-operation with and access by the Agent to the building for the purposes of managing and letting the Property;

For example: ensure the Body Corporate provides the Agent with a copy of the Body Corporate by-laws;

4.18 if the Property includes an outdoor swimming pool, provide and keep the swimming pool, pool fencing, pool gate and pool lock in good repair and in compliance with all applicable building and pool fencing legislation, regulations, by-laws and standards from time to time.

What Happens if The Lessor is in Default

 5.1 If a General Tenancy Agreement is terminated due to the Lessor's breach, the Lessor must pay the Agent, as liquidated damages, an amount equal to the commissions and fees set out in Items C and D of the Schedule that would have been paid had the General Tenancy Agreement been duly completed, in addition to any other amount ordinarily payable to the Agent under this Agreement.

Lessor's Warranties 

The Lessor warrants that:

6.1 the Lessor is the registered proprietor of the Property or is in the process of becoming the registered proprietor of it and has authority to enter into this Agreement;

6.2 all information given to the Agent about the Property is true and correct in all respects and is neither misleading nor deceptive nor likely to be either;

6.3 the Lessor has not withheld any information that might have caused the Agent not to enter this Agreement;

6.4 any outdoor swimming pool, pool fencing, pool gate and pool lock are in good condition and comply with all applicable building and pool fencing legislation, regulations, by-laws and standards from time to time; required by the Fire and Rescue Service Act 1990 (Qld) and the Lessor will:

6.6.1 maintain the smoke alarm(s) installed at the Property by cleaning and testing them 30 days before the start of a tenancy (including tenancy renewals); and

6.6.2 replace all batteries in the smoke alarm(s) if, at the time of cleaning and testing, the batteries are flat or almost flat; and

6.6.3 replace all smoke alarm(s) at the Property before they reach the end of their service life.

 Lessor's Acknowledgements 

The Lessor acknowledges that:

7.1 All communications under this Agreement must be given in writing to the parties' postal address, facsimile number, email address or mobile telephone number specified in Parts 1 or 2 of the Appointment of Agent;

7.2 The Lessor consents to the use of email and facsimile in accordance with the provisions set out in Chapter 2 of the Electronic Transactions (Queensland) Act 2001 (Qld) and the Electronic Transactions Act 1999 (Cth);

7.3 the Agent's contractual obligations are limited to those contained in this Agreement;

7.4 the authority vested in the Agent by this Agreement extends to the Agent's employees, consultants and contractors from time to time;

7.5 the Agent gives no warranty as to the creditworthiness, character, suitability or fitness of any Tenant;

7.6 the Agent is not responsible to the Lessor for any default in payment of rent or otherwise on the part of the Tenant or for any damage done by or any unsatisfactory conduct on the part of any Tenant and whether or not such Tenant was approved by the Agent;

7.7 the Agent gives no warranty that the Property is clean and fit to live in nor safe to live in nor in a good state of repair nor that it complies with any building requirements;

7.8 the Agent assumes no liability for the state or manner of construction of the Property at the time of entry into this Agreement or subsequently;

7.9 the Agent is not a licensed engineer, architect, builder or any other type of professional or tradesperson and is only responsible to report to the Lessor on matters that are readily apparent on a visual inspection undertaken in accordance with Clause 8.10 or which are reported to the Agent in writing by a third party in accordance with Clause 8.11;

7.10 without limiting the generality of Clause 7.9, the Agent is not responsible for identifying or reporting any latent defect in the Property, any defect in a floor surface in the Property, or for the maintenance or cleaning of a floor surface in the Property;

7.11 the Agent gives no warranty that any animal to be kept at the Property will not cause any harm, loss or damage or that the Property is suitable for keeping the animal, and the Agent is not responsible and will be held harmless by the Lessor for any loss, claim, suit or demand, brought, caused or contributed to, directly or indirectly, by the animal.

 Agent's Authority 

The Lessor authorises the Agent:

8.1 to deduct any monies due and payable to the Agent from the Lessor pursuant to this Agreement from any monies received by the Agent for and on behalf of the Lessor;

8.2 to pay from any monies received by the Agent, on behalf of the Lessor, any disbursements referred to in Item F of the Schedule or other expenses, including contractors' and trades peoples' fees, incurred by the Agent on behalf of the Lessor in the management of the Property;

8.3.1 to relet the property at market rental for a fixed term (such as a 6 or 12 month term or other fixed term) unless otherwise advised in writing by the Lessor.

8.4 to advertise the Property as available for rental, at the Lessor's expense, as specified in Part 7 of the Appointment of Agent; 8.4.1 the Agent is not permitted to provide keys to prospective tenants to inspect the property unsupervised unless authorised to do so in writing by the Lessor.

8.5 to communicate to the Lessor an expression of interest whether written or oral, about the letting of the Property, at the Agent's sole discretion;

8.6 to make reasonable inquiry, to the extent permitted by the laws relating to privacy and discrimination, as to the ability of the prospective tenant(s) to meet the Tenant's obligations as specified in the General Tenancy Agreement current at the time the Lessor enters into this Agreement;

8.7 to negotiate and settle the terms of the General Tenancy Agreement with the Tenant in conformity with relevant Legislation;

8.8 to accept and sign the General Tenancy Agreement and ancillary documents as Agent for the Lessor;

8.9 to demand and collect rent, bond money, key deposits and other monies (if any) payable to the Lessor from a Tenant(s) as and when these monies are due for payment and to pay bond money to the Residential Tenancies Authority in accordance with the Relevant Legislation;

8.10 to the extent permitted by the Relevant Legislation, to inspect the Property at least once during each 6 monthly period, unless otherwise expressly agreed and specified in the Schedule, and where the Agent considers reasonably necessary, to report as to the outcome of those inspections to the Lessor;

8.11 to give notice to the Lessor, in the manner specified in Clause 7.1 on receipt of a complaint or notification of any serious safety risk relating to the Property. The giving of notice pursuant to this clause is the extent of the Agent's authority;

8.12 to arrange for repairs and maintenance as authorised by the Lessor in writing (including the authorisation contained in Part 6.3 of the Appointment of Agent and in accordance with section 27 of the Property Agents and Motor Dealers (Real Estate Agency Practice Code of Conduct) Regulation 2001). Emergency repairs are to be dealt with immediately and all other repair and maintenance requests are to be dealt with in a timely fashion;

8.13 to exercise the Lessor's rights to vary or terminate any General Tenancy Agreement with a Tenant(s) to the extent permitted by the Relevant Legislation;

8.14 if considered necessary by the Agent (for example because of the frequency or the nature of the breach), to notify the Lessor of any unremedied breach by the Tenant(s) of the terms of his/her General Tenancy Agreement with the Lessor;

8.15 to complete and sign on behalf of the Lessor and serve all Condition Reports, documents and notices required to be given under the Relevant Legislation;

8.16 to demand and receive from the Residential Tenancies Authority, a Tenant's bond money to the extent of unpaid rent or other monies payable by that tenant under his/her General Tenancy Agreement with the Lessor;

8.17 to obtain from the Body Corporate and to provide to the tenant(s), access to a copy of the Body Corporate by-laws upon signing the Tenancy Agreement. 

Appointment of Solicitors and Commerical Agents 

9.1 The Agent may appoint solicitors or licensed commercial agents, at the expense of the Lessor, to recover monies due from a tenant, with prior written approval of the Lessor. 

Agents Obligation 

10.1 The Agent must:

Account to the Lessor in writing for all monies received, paid or appropriated in accordance with this agreement. 

10.2 notify the Lessor of the Property becoming vacant. 

Indemnity By Lessor 

11.1 The Lessor indemnifies the Agent and therefore must pay the Agent for liability, loss or costs the Agent suffers or incurs from all actions, claims, demands, damages and expenses arising out of or in respect of its capacity as Agent of the Lessor.

11.2 Without limiting the generality of Clause 11.1, the Lessor indemnifies the Agent from and against all actions, claims, demands, losses, costs, damages and expenses arising out of or in respect of the Lessor's failure to give timely, appropriate or sufficient funds to or for the Agent to carry out an instruction or authority. 

Termination 

12.1 If either party wishes to terminate this Agreement, it must be terminated in accordance with Part 4.2 of the Appointment of Agent. If Part 4.2 is not completed, Part 4.2 is deemed to provide that this Agreement ends on the date when one of the followinghappens:

12.1.1 either the Lessor or the Agent exercise the option to revoke the Appointment of Agent under Section 133(4)(b) of the Property Agents and Motor Dealers Act 2000 (Qld), in which case the party exercising the option must give the other party 90 days notice unless the Lessor and the Agent agree on some lesser period (but not less than 30 days); or

12.1.2 the Lessor signs a transfer of, or contract to sell, the Property in which case the Lessor must give the Agent 90 days notice unless the Lessor and the Agent agree on some lesser period (but not less than 30 days);

12.1.3 the Lessor must give the notice referred to in Clause 12.1.2 above on the day that the Lessor signs the transfer of, or contract to sell, the Property.

12.2 The Lessor must pay to the Agent, all commissions and fees to

which the Agent is entitled during the notice period specified in Parts 5 and 6 of the Appointment of Agent.

12.3 Any termination does not effect either party's pre-existing rights

and obligations. 

Lessor And Agent's Acknowledgement 

The Lessor and the Agent acknowledge that they:

13.1 have received a copy of

1.     the PAMD Form 20a Appointment of Agent - Letting and Property Management,

2.     the Property Management Schedule and

3.     these Essential Terms and Conditions;

13.2 have read and fully understood the PAMD Form 20a Appointment of Agent - Letting and Property Management, the Property Management Schedule and these Essential Terms and Conditions, including the warranties and indemnities contained therein and agree to be fully bound by them.