Terms of Appointment
Agreeing to take over a new block shouldn’t be done with an informal chat and a quick handshake. There’s a lot for managing agents to consider when taking on the management of a new block beyond the handover process. Whilst there are a number of things you can do to ensure everything runs smoothly, a key document you will need during this period is a well-drafted Terms of Appointment.
Terms of Appointment are not as common as you might think. It is surprising the amount of managing agents who do not have any type of formal signed agreement in place. Failing to have a signed contract means you could be opening yourself up to significant risks, particularly if a dispute arises.
Template or a more bespoke option?
Some managing agents may be happy to rely on a standard form template. A template could save you time but this template may not look to address the specific requirements of the block you are going to be managing and the challenges you may be dealing with.
As every block comes in with different challenges, we would always recommend that you should consider having your Terms of Appointment drawn up by solicitors experienced in block management as these terms can reflect both your and the freeholder’s needs.
It’s a matter of timing
During the tendering process it might seem that asking to set out the terms and conditions of the managing agreement would adversely affect a managing agent’s chances to secure management, but the tendering process is the ideal time to agree the proposed terms.
Remember, your Terms of Appointment can be used as evidence of what was agreed if a dispute arises.
The importance of a bespoke expert approach
It’s important to use solicitors who understand the challenges of property management to draw up your Terms of Appointment as they are the written evidence of the commercial relationship of the block and managing agent should any disagreement or disparity arise. Indeed these terms may be viewed by a Tribunal or Court as part of a property management dispute.
Brady Solicitors are experts in reviewing and drafting Terms of Appointment for managing agents. If you would like someone to take a closer and commercial look at your current Terms of Appointment contact us using the form on the right.