Since the Unit Titles Act 2010 came into force on 20 June 2011, we expect to see a greater level of transparency and disclosure of relevant information in respect of unit title properties.
The contents and effect of management agreements (MA) are often overlooked when entering into Agreements for Sale & Purchase (the Agreement).
If you are selling a unit, the subject of an MA consideration should be given at the outset as to whether the buyer intends to become a party to the MA or not. Care and advice needs to be taken in drafting the Agreement to ensure that any notice periods for ending the MA are recorded and adhered to, and any options to purchase or first rights of refusal to purchase are satisfied.
A recent decision of the Real Estate Agents Authority Complaints Assessment Committee3 provided that any commissions payable to Real Estate Agents in respect of the MA should be supported by an Agency Agreement (s126 of the Real Estate Agents Act 2008).