Acquisition of Management Rights (Letting Rights） and Rent Rolls

Question:

In the process of acquiring management rights or a rent roll, I note that all property owners have executed the PO Form 6. Is it necessary for me to obtain new PO Form 6s, duly signed by each of these owners?
Response:

​According to Section 113 of the Property Occupations Act, the assignment of PO Form 6 is permissible. Consequently, there is no statutory obligation to have a new PO Form 6 completed and endorsed by the property owners for the incoming managing agent.

Key Changes:

1. New Form 6: The updated Form 6 under this act doesn't specifically mention anything about assignments.
2. Assignability of Appointments: Now, all appointments can be transferred to someone else.

What the Law Says Now:

• According to Section 113 (2) of the Property Occupations Act 2014, whoever takes over an appointment (the assignee) must inform each client in writing about this change within 14 days after the transfer.

Implications for Rent Roll Sales:

• In rent roll sales, this means appointments can be passed to the buyer without the landlord even knowing or agreeing to it initially. It's the buyer's job to then inform the landlords about the sale and the transfer of the appointment.

Best Practices of SIRE Clients' Sales:

• It's highly recommended that the seller informs the landlord about the transfer before finalizing the deal (settlement). The buyers informs the SIRE their experience and service benefits for the landlord.
• Landlords should always be informed before the settlement about any changes in their appointment. The seller should discuss with the property owner any concerns or questions they might have, and explain the benefits of transferring to the new agency.

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