Rent roll sold, where do I stand?

John asks:
(updated on Friday, June 24th 2011)

I had my rental properties with real estate company #1 and they sold their rent roll to real estate company #2. I am not happy with company #2 and want to cancel my agreement with them (although I have no agreement with #2 only #1). There is no assignment of contract clause in my property management agreement but company #2 is saying that I can't cancel the agreement. I was never advised that my property management company was changing until after it had happened. Where do I stand?

Our Experts Answer:

This is an interesting situation. (You may originally have chosen the services of Company 1 after rejecting an offer from Company 2.)  

The latter is probably now claiming that the rights and obligations of Company 1 were assigned to it when it purchased the rent roll.  

However, on-selling management of your property is not like on-selling a hire-purchase finance agreement.  

It is something personal that you need to be happy with.  You may find that your commitment to Company 1 (and vice versa) was broken when that company sold its rent roll.  

If Company 2 remains stubborn you may complain to the Real Estate Institute. 

Quinovic's outstanding people and systems provide the most professional, effective and reliable residential property management service in the NZ market for over 22 years.

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