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.