In an article published by accomnews on 30 April, John Mahoney of Mahoney Lawyers outlines the changes to the POA legislation compared with the PAMD and what this will mean for Management Rights owners. Due to last minute Government tweaking of the legislation, it is now expected to take effect in the second half of this year.
The Government is hoping that deregulation of commission will help to reduce commissions. John Mahoney sees an opportunity to introduce a sliding scale to incentivise both managers and owners
Appointments to Act will no longer need to be “ticked and signed “to allow them to be assigned to new managers. This will be automatically allowable. Notice periods to terminate management agreements will now be 30 days in all cases.
It will no longer be a requirement that a resident letting agent provide evidence of body corporate approval when applying for a licence and it will no longer apply to a specific building
It will be sufficient for the “person in charge” to hold a licence.
Any PAMDA appointments in place prior to the commencement of the new Act will continue in accordance with their terms until that appointment ends. If you wish to take advantage of assignability etc, new agreements will need to be drawn up.
By Sally Baumber
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