The new legislation surrounding the management rights industry is coming into effect on the 1st of December 2014.
Below we have illustrated 10 of the major changes from the previous legislation and how it will affect you as a licensee.
- If you manage/operate more than one building/complex they no longer have to be next to each other.
- You no longer have to reside in the complex. However this does not remove any obligation to reside in the complex as part of your body corporate agreements. If your caretaking agreement stipulates that you must live on site then you must still live on site.
- You are no longer required to have an office on site. However if have body corporate approval to carry on a letting business in the complex you will require to have an office on site.
- Substitute licensees can now be appointed for up to 30 days at a time with a limit of 12 weeks in 12 months.
- There are new letting appointment forms (Form 6) for your appointment by unit owners as their agent. These forms supersede the PAMD 20a forms currently used. These new forms (Form 6) must be used from 1 December 2014. Your old appointments still remain valid until updated or expired. This presents a good opportunity to get your appointments in order.
- There is no longer a regulation on the commission you can charge for your services. This can be negotiated and is not restricted to previous limits.
- Letting Appointments can now be revoked with 30 days written notice.
- Letting Appointments are now automatically assignable and there is no requirement for an assignment clause in the agreement. If you assign your appointments to another party you must give each owner written notice within 14 days after the assignment.
- No need to display you licence however it must be kept available for inspection.
- Failure to lodge a trust account audit report will result in immediate suspension of your licence.
If you have any questions or would like to know more about the changes please contact our office.