However, there is a problem with assignment clauses. Greg explains, “But what we`ve found is that a number of major lease roller acquisition lenders are no longer interested in these divestiture clauses and will only lend when new agency contracts are rewried. So, if you want to sell your rental list, you need to be aware that the way you are going to sell the business is very different from the past. “A rental role is an asset for more than cash flow and there may come a time when you decide to sell it and go in another direction. After accepting the purchase of a rental roll, the buyer pays a 10 percent deposit. Of the remaining 90%, 15% is set aside as resolution money funded by retention. What to do when selling rental rolls – ask for legal advice! For now, everyone is selling their rental roles. In greg Jemmeson`s fourteen years of providing legal advice, he has never seen as much of a volume of acquisitions and divestitures of rental and business roles as he has in the past six months. Our experience in selling Rent Rolls and real estate agencies is unprecedented. We have participated in Rent Roll sales worth over $384 million and are comprised of over 101,300 managers. Raising equity or increasing your market reach? Whether you are selling a rental role element of your existing real estate business or increasing your rental management income, cass Legal Law Practice is aware of the complexity of such a transaction and can support and advise you from the beginning to the end of the transaction to ensure that your interests are protected. to maximize your investment potential.
Greg`s solution to his clients is: “If you want to sell the rental list without resigning the contracts, one of the strategies we use is for the principals to create a non-negotiated entity that gets a business license, and that entity signs all the agency contracts. However, they are managed by another business entity. So what we do is we have the leasing role in an un negotiated business, and if we finally manage to sell our leasing role, we sell the shares of that non-negotiated company, so we get a 100% transformation of the rental roll. And the banks are also satisfied with this type of structure. Greg says, “In some jurisdictions in Australia, it is common for rental rolls to be sold by way of assignment. When selling a rental list by way of assignment, there is a clause in your agency contract that allows you to assign the rights to another real estate agent, which means that you do not have to go through the process of resubscribing agency contracts. “Since it is impossible to accurately estimate the number of owners who will change with a sale of rental rolls, the contract generally provides for a buffer period from the end of billing. During this period, 10 to 20% of the selling price [of a third party] is held for a period of at least three to six months. The process of selling a rental roll involves several steps. First of all, you need to be ready and have everything organized, with all the information beautifully presented. Once you find a buyer, there will be some negotiations. As a seller, you do not have the right to intervene after the conclusion of the sales contract.
You cannot attract owners to your business during the retention period, usually due to a non-compete/trade restriction clause.. . .