The attachments commonly referred to the schedule and terms and conditions of the PAMD Form 20a (and 22a) are contractual law based; meaning the law doesn’t say we have to use those pages however it is best practice and for sound risk management that we do as an industry.
In relation to terminating management agreements, it depends on the actual agreement, refer to current term 4.2 (page 2). This term commonly refers to the terms and conditions which depend on what form provider that your agency uses for the attachment and terms. It is commonly no less than 30 days’ notice and no more than 90 days’ notice. The term can be negotiated between the parties. Some agreements allow for the maximum 90 days however this may appear as an unfair contract term law given the new laws that commenced federally on July 1 2010 in this regard.
If you require more advice on this matter (or any other agency matter), or let only managements or multiple listing managements, and your agency is a Platinum Elite, Gold Priority Agency Member OR a Professional Elite Individual Member please contact Stacey Holt for best practice advice.
(c) Real Estate Excellence provides General Real Estate Agency Best Practice Advice and Services
this information is current as at 6th July 2011