How much notice is required to end a management agreement?

How much notice is required when ending a management agreement?

This is still very much a frequently asked question and while it may seem like a simple question to many, some property managers are still unsure.

When a Lessor wishes to terminate their appointment with you as the managing agent, it is important to recognise the different notice periods dependent on the particular appointment form the Lessor has signed.

In 2014, the Property Agents &; Motor Dealers Act (PAMDA) was repealed and replaced with the Property Occupations Act (POA).

After the repeal of PAMDA, most agents transitioned their clients to new Form 6 appointments under the POA. In this case, the termination notice requirements are those set out in the POA. However, if an agent has left an appointment under PAMDA in place, the notice periods specified in the PAMD 20a appointment form and governed by that legislation, will continue to apply when ending a management agreement.

The PAMD Form 20a Appointment of Agent and the ending of a management agreement

Form 6 Appointment

What else is there to consider:

- The timeframes are the same if it's the agent who wishes to terminate the agreement,

- During the notice period the agent must continue to act in the client's best interest and follow their lawful instructions,

- Terminating a management agreement does not terminate a tenancy, and

- The agent who is gaining the management must be aware and explain to the client, Section 21 of the Property Occupations Act in relation to an existing appointment.

Got further questions on ending a management agreement? REIQ Members can seek advice from the Property Management Support Service by contacting 1300MYREIQ or emailing pmsupport@reiq.com.au. Not a member? Join today!