1. Appointment of Agent
The Client appoints the Agent to lease and manage the Property.
2. Client’s Confirmation
By signing this Authority, the Client warrants and confirms
(a) Having read this Authority;
(b) Being authorised to enter into this Authority;
(c) Having the authority to grant the Agent leasing and management rights to the Property;
(d) There are no other existing exclusive leasing or managing Authorities in respect of this Property;
(e) That, in accordance with s49A(1)(b) of the Estate Agents Act 1980 (Vic.), prior to signing this Authority, the Client was advised by the Agent that expenses and commissions were subject to negotiation; and
(f) Having received a copy of this Authority at the time of signing.
3. Agency and Authority
(a) The Client appoints the Agent as exclusive leasing and/or managing agent to carry out the services as specified in the “Level of Service” for the term of this Authority as set out in Clause 13 or any extension to the exclusive authority period.
(b) The Client will refer any prospective renters of which the Client becomes aware to the Agent.
(c) Either party may terminate this Authority during the ongoing authority period at any time providing no less than 30 days’ notice in writing. Such termination will be without prejudice to either party’s existing rights, duties or obligations.
4. Obligations and Authority
(a) If the Agent leases the Property, the Client hereby authorises the Agent to sign the tenancy agreement on the Client’s behalf. The Client acknowledges that the tenancy agreement may also include any other conditions reasonably required for the tenancy.
(b) Where the Property has been leased, management will continue under this Authority until terminated by either party.
(c) In accordance with the Residential Tenancy Act 1997 (Vic.), a renter is authorised to undertake urgent repairs up to $2,500 plus GST for which the Client is responsible if unable to contact the Agent and/or Client. The Client hereby authorises the Agent to carry out such urgent repairs without reference to the Client up to a cost of $2,500 plus GST.
(d) The Client confirms the Property (including all fixtures, fittings and any goods/chattels leased with the Property) is not in a dangerous condition.
(e) If at any time the Client becomes aware of any dangerous condition, the Client will immediately notify the Agent in writing.
(f) If injury is caused because the Property is in dangerous condition, the Client will indemnify the Agent and/or Agent’s representatives against any resulting claim.
(g) If the Client is advised by the Agent of potential or actual problems with the Property the advice is deemed sufficient notice to the Client of a dangerous condition.
(h) The Client must comply with the requirements of all relevant legislation, by-laws, rules and regulations, local, state and federal.
5. Condition of Property
The Client warrants to the Agent that the Property (which include all fixtures, fittings and any goods and chattels let with the Property) is:
i. not in a Dangerous Condition
ii. complies with the Rental Minimum Standards as specified in Schedule 4 of the Residential Tenancies Regulations.
iii. if at any time the Client becomes aware, by whatever means, of any Dangerous Conditions of the Property or that it does not comply with the Rental Minimum Standards, the Client will immediately notify the Agent of the Dangerous Condition or non-compliance both verbally and in writing; and
iv. will authorize the agent, if it is within the agreed Level of Service, to engage at the client’s expense appropriately qualified people to take corrective action within the timeframes specified in the Residential Tenancies Act and Regulations.
If the Client is advised by the Agent that the property is in a Dangerous Condition or does not comply with the Rental Minimum Standards, the advice is deemed to be sufficient notice to the Client of a Dangerous Condition or non-compliance with Rental Minimum Standards.
6. Safety Related Activities
The Client acknowledges that the agent is not qualified to identify latent defects in the Property, i.e. defects that are not obvious or readily observable.
The Client acknowledges their responsibility for compliance with the following safety related activities prescribed in the Act and Regulations, including any subsequent modifications or additions to those obligations:
- Electrical safety activities
- Gas safety activities
- Smoke alarm safety activities
- Swimming pool (and spa) barrier safety activities
- Relocatable swimming pool (and spa) safety activities
- Bushfire prone area activities
The Client will either authorise the Agent to arrange for these activities to be carried out at the Client’s expense by appropriately qualified people, or in the absence of such an authorization will provide, at the request of the agent, evidence of having complied with safety related activities prescribed in the Act and Regulations and required by any rental agreement entered into by the Client and a renter.
7. Agents Fees and Commissions
(a) The Client acknowledges the Agent is entitled to the Leasing Fee if:
- During the exclusive authority period the Property is leased; or
- During the ongoing authority period the Property is leased and the Agent is the effective cause of the Property being leased; or
- Within 120 days after the conclusion of the exclusive authority period, the Property is leased to a renter introduced by the Agent during the exclusive authority period.
(b) Where the Agent’s fees are calculated based on rent paid, such calculations will be determined by the actual rent paid notwithstanding such rent paid may be greater or less than the rent amount set out in this Authority.
(c) The Agent is entitled to a Management Fee as set out in this Authority for carrying out the management services in relation to the Property.
(d) The Client agrees to charge the Property with the payment of a Leasing Fee, Releasing Fee, Managing Fee, marketing expense and any other outgoing incurred by the Agent at the request of the Client which remains unpaid after 30 days from the date on which the Client receives the Agent’s invoice. The charge will continue until the Agent is paid.
(e) The Client acknowledges that the Agent is entitled to reimbursement of the marketing expenses incurred, whether or not the Property is leased.
8. Indemnity
(a) The Agent having complied with its obligations under this Authority and not having been negligent, the Client indemnifies that Agent, its officers and employees, from and against all actions, claims, demands, losses, costs, damages and expenses which the Agent may suffer or incur in respect of:
- The Client’s failure to comply with this Authority;
- The Client’s failure to give the Agent appropriate authority, instruction or sufficient funds to carry out an instruction or authority;
- The renter’s failure (without fault on the part of the Agent) to comply with their obligations under relevant legislation with respect to the tenancy agreement;
- The Agent acting in the capacity of the Client under this authority;
- The Client’s failure to maintain the property and carry out repairs; or
- A warning label or safety instructions which have been removed, damaged or defaced where a good, chattel, fixture or fitting has been supplied to the Property which such a label or instruction attached.
(b) The Client acknowledges that the Agent is acting only in the capacity of a managing agent subject to this authority and no otherwise.
(c) The Agent is not responsible for reporting matters (including defects latent or otherwise) other than those that are readily apparent during the course of the inspections or as brought to their attention as Agent by the renter.
(d) It is the Client’s responsibility to obtain specific advice with respect to the Property and its soundness as to:
- Building and structural integrity; and
- Pest, health and other requirements.
(e) The Agent, having not been negligent, is indemnified by the Client from and against all actions, claims, demands, losses, costs, damages and expenses in relation to this Authority with respect to matters of cleanliness, safety, construction, building requirements or building deterioration.
9. Commission Sharing
At the time of signing this Authority, the Agent does not share commission with any other Agent.
10. Dispute Resolution
The Agent has procedures for resolving complaints and disputes arising from the operation of the Agent’s estate agency practice. If the Client is dissatisfied with the service of the Agent and the dispute cannot be resolved internally, the Client can make a complaint to Consumer Affairs Victoria.
11. Assignment of Authority
The Agent may assign its rights and obligations under this Authority to another licensed estate agent (‘assignee’) by providing written notice to the Client. If the Client does not object in writing to the assignment within 14 days of receipt of the Agent’s notice, the assignee is deemed to hold this Authority as if the assignee was the Agent named in this Authority.
12. Agents Rebates
The Agent will not be, or is unlikely to be, entitled to any rebate.
13. Electronic Communications
(a) The Client acknowledges that in accordance with the Electronic Transactions (Victoria) Act 2000, the Agent may send some notices electronically, this Authority included. The Client agrees this is a valid form of notice in writing in accordance with the Act.
(b) The Client acknowledges that the contact details provided to the Agent will be used by the Agent for the purposes outlined above. It is the Client’s responsibility to notify the Agent in writing of any changes in contact details. Any failure to do so shall not render the notice invalid.
(c) By signing this Authority, the Client agrees to and consents to the use of electronic communications in accordance with the Electronic Transactions (Victoria) Act 2000.
(d) The Client acknowledges that they are entering a binding agreement if the Authority is signed electronically.
14. Privacy
(a) The Agent must comply with the provisions of the Australian Privacy Principles as set out in the Privacy Act 1988 (Cth.). Where requires, the Agent will maintain a Privacy Policy.
(b) The Privacy Policy outlines how the Agent collects and uses personal information provided by the Client or obtained by other means.
(c) The Client agrees that the Agent may, subject to the Privacy Act 1988 (Cth.), collect, use and disclose personal information to:
- Renters and potential renters insofar as such information is relevant to the managing and/or leasing of the property;
- Property data collection agencies;
- Owners corporations and financial institutions;
- Tradespeople and similar contractors in order to facilitate carrying out works with respect to the Property; or
- Other third parties as may be required by the Agent for the purposes of marketing, sales promotion and administration relating to the use of the Agent’s products and services complying with legislative and regulatory requirements;
(d) Without provision of certain information, the Agent may not be able to act effectively or at all on behalf of the Client.
(e) The Client has the right to access personal information and may require correction or amendment of any inaccurate, incomplete, out of date or irrelevant information.
(f) The Agent will provide (where applicable) a copy of its Privacy Policy on request.
15. Level of Service
(a) Inspect the property, provide market appraisal and recommend any property improvement to maximise rental return;
(b) Development of descriptive copy for marketing purposes;
(c) Market the property, including preparation and placement of agreed advertising throughout our network;
(d) Conduct opens for inspection and private appointments;
(e) Provide regular feedback reports throughout the marketing period;
(f) Receive, process and check tenancy applications with thorough screening of prospective renters;
(g) Select a renter in consultation with the rental provider;
(h) Provide an instruction sheet that incorporates appropriate instructions from the Client for attending to requests for maintenance and repairs and disbursement of rent;
(i) Arrange preparation of the appropriate documentation required under legislation and supervise the execution of all tenancy documentation by the renter;
(j) Preparation of an entry condition report;
(k) Collection, banking and processing of all initial payments by the renter;
(l) Lodgement of rental bonds with the Residential Tenancy Bond Authority;
(m) Rent collection, receipt and banking;
(n) Electronic banking of the rent collected into your account;
(o) Payment of all property outgoings (where requested);
(p) Rent arrears control (where applicable);
(q) Representation at VCAT (where applicable);
(r) Detailed periodic inspection reports are conducted within the first 6 months of all new tenancies and annually thereafter
(s) Yearly rent reviews (subject to market conditions);
(t) Preparation of lease renewals;
(u) Organising repairs and maintenance to the Property as authorised by the Client;
(v) Processing renter’s bond after vacating; and
(w) Arranging necessary repairs and/or cleaning after renter vacates.