sec.201ZGReplacement of letting agent authorisation and service contract in particular circumstances

sec.201ZG Replacement of letting agent authorisation and service contract in particular circumstances

This section applies if the remainder of the term of the letting agent’s authorisation (the transferred authorisation ), including any rights or options of extension or renewal, is less than 7 years when transferred to a person (the transferee ) under this division. A letting agent’s authorisation is given for a term of 5 years with 4 rights of renewal of 5 years each and 5 years have expired. The remainder of the term is therefore 20 years and this section does not apply. On the transfer— the transferred authorisation and any service contract (the transferred service contract ) forming part of the transferred management rights terminate; and the body corporate must— authorise the transferee to conduct a letting agent business for the site or precinct to which the transferred authorisation related; and if a service contract formed part of the transferred management rights—engage the transferee as a service contractor. The authorisation and engagement must be given for a term of 9 years starting immediately after the transfer. Subject to subsection (3) — the authorisation must be given on the terms applying to the transferred authorisation immediately before the transfer; and unless the body corporate and transferee agree otherwise, the engagement must be given on— the terms applying to the transferred service contract under subsection (5) ; or if subsection (5) does not apply—the terms applying to the transferred service contract immediately before the transfer (the existing terms ). The engagement must be given on the existing terms of the transferred service contract as changed under a review advice about the contract if— the review advice states how the contract’s reviewable terms should be changed to ensure they are fair and reasonable; and the body corporate gave the letting agent a copy of the review advice as required under section 201ZJ (1) . s 201ZG ins 2011 No. 27 s 302 (sec.201ZG-ssec.1) This section applies if the remainder of the term of the letting agent’s authorisation (the transferred authorisation ), including any rights or options of extension or renewal, is less than 7 years when transferred to a person (the transferee ) under this division. A letting agent’s authorisation is given for a term of 5 years with 4 rights of renewal of 5 years each and 5 years have expired. The remainder of the term is therefore 20 years and this section does not apply. (sec.201ZG-ssec.2) On the transfer— the transferred authorisation and any service contract (the transferred service contract ) forming part of the transferred management rights terminate; and the body corporate must— authorise the transferee to conduct a letting agent business for the site or precinct to which the transferred authorisation related; and if a service contract formed part of the transferred management rights—engage the transferee as a service contractor. (sec.201ZG-ssec.3) The authorisation and engagement must be given for a term of 9 years starting immediately after the transfer. (sec.201ZG-ssec.4) Subject to subsection (3) — the authorisation must be given on the terms applying to the transferred authorisation immediately before the transfer; and unless the body corporate and transferee agree otherwise, the engagement must be given on— the terms applying to the transferred service contract under subsection (5) ; or if subsection (5) does not apply—the terms applying to the transferred service contract immediately before the transfer (the existing terms ). (sec.201ZG-ssec.5) The engagement must be given on the existing terms of the transferred service contract as changed under a review advice about the contract if— the review advice states how the contract’s reviewable terms should be changed to ensure they are fair and reasonable; and the body corporate gave the letting agent a copy of the review advice as required under section 201ZJ (1) .