9 Steps to Investing and Owning Management Rights
Published: 20 February 2015.
1) Choosing your Management Rights Complex
We have a variety of complexes listed to suit your needs and requirements. A location needs to be decided as does the type of Management Rights ie: holiday, permanent. We support our Buyers every step of the way to assist them in making the right decision based on their requirements and lifestyle.
2) Negotiating
At First National Think Management Rights we will assist you in determining a fair price to put forward as an offer. Remember that numerous things can influence the multiplier being asked such as location, supply & demand. Our listings are priced in today’s market by professionals. Once you have decided on an offer, an Offer and Acceptance document is used to outline agreed terms and conditions. This is not a contract, however the contract is drawn up based on these terms and conditions.
3) Contracts
Contracts are prepared by the Sellers lawyers or acting resort Brokers and are then forwarded to the Buyers lawyers to look over. When both parties are satisfied the contracts are signed by both parties and a deposit is put down.
4) Deposits
Generally a deposit of between 5 & 10% of the purchase price is required as a deposit and held in a trust account until settlement
5) Financial Verification
The buyer appoints an Accountant who specialises in Management Rights to conduct an on-site verfication of the sellers trust account records and accounts.
6) Due Dilligence
The buyers lawyer will complete a due diligence where they complete a thorough search and check of the Caretaking and Letting agreements along with the Body Corporate records and the conditions of the contract.
7) Finance Approval
The loan process begins once financial verification and due diligence have been completed.
8) Body Coporate Approval
The Body Corporate must approve the incoming manager to be assigned the caretaking and letting agreements for the complex via a meeting between both parties.
9) Settlement
Settlement is usually between 60 & 90 days from the signing of the contract to settlement.
