SearchSale of Property fee
Katherine asks:
(updated on Monday, November 18th 2019)
My property manager has recently changed ownership and the new owner has sent me an 'Instructions to Act as Property Manager' form to sign.
It contains terms that were not in place under the previous owner - eg: a one off charge of $500 (plus GST) in the event of sale of the property. Is this a government requirement or can property managers set their own terms?
It is my intention to sell the property in the near future.
Our Experts Answer:
The Sale of Property fee is not uncommon in the industry. It reflects the additional work that a property manager has to do when a tenanted property is placed on the market for sale. Interactions between tenant and real estate salesperson can very quickly become tense, especially when negotiating terms for access to show prospective purchasers through the property. Often what is convenient for a salesperson is not so convenient for a tenant.
The main purpose of a Sale of Property fee is not to generate revenue for a property manager but to make a landlord think about when they place the property on the market for sale. Close to the end of a tenancy is a time when tenants can be more relaxed about viewings, as they are possibly getting ready to move on. That is when the property manager is less likely to charge the fee. I suggest you speak with your new property manager and come to an understanding about your sale plans.
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