For many years RCA Business Brokers have made a specialty of selling Off the Plan management rights and giving advice and service to our many varied and valued developer clients.
Many of our competitors have “given it a go” over the years, but the ultra slow settlements from the time you do the deal to the eventual completion and a pay day can sometimes take what seems like forever. I think our longest settlement took four and a half years. We’d spent the money ten times by the time the cheque finally hit our bank account.
We pride ourselves on keeping up with the latest legislative changes and giving developers the very best advice needed to maximise the value of the business and more importantly be certain we sell to the most effective, experienced manager we can find for any particular project.
From an off the plan buyers perspective, when buying through RnR they can be equally certain the agreements are correct and can have a solid degree of comfort that what they end up with is what they initially contracted to buy.
Checking agreements, making certain there are storerooms, checking the availability of office space, cleaner’s cupboards, and ascertaining whether it is necessary to buy a manager’s apartment and live on site or not are all part of what we do.
As long term advocates and representatives of the management rights industry, RCA Business Brokers do this as a service to our buyers and sellers. We want it to be done right.
SO, how do we feel then when developer clients and buyers phone us to say they have been told by one particular agent in Brisbane that it will be necessary for the purchaser of the off the plan business to buy 3 or 4 units with their management rights business if they want any chance of securing the purchase.
As a developer, if you’re motivated solely to use an agent because he says he can get you a couple more unit sales with the management rights, then you really don’t think much of your development, the buyers of your units or the buyers of the management rights. There are plenty of “wanna be” managers who can afford a couple of extra units, but that doesn’t necessarily make them effective, responsible or desirable managers.
What it does do, and very effectively so, is to bolster the commission the selling agent is charging the developer.
Purchasers who are confronted by a agent telling them the only possible way they will secure the management rights to an off the plan development is to agree to buy 3 or 4 more units should think long and hard before they enter into any contractual relationship with that party. Why on earth would you want to do that? Management rights are like the trains, there will always be another one along soon.
This is a straight up Con Job!!
There is no other way to describe it.
The manager doesn’t want to own 4 units with his business, so what does he do, Sells them.
He will incur the stamp duty on the contracts and then the agent’s commission when he sells them again. WOW! Great deal isn’t it??
Developers, stitch up a management rights buyer with extra units, he doesn’t want to own, just to get rid of the stock and the buyer turn around and dump the units back on the market in opposition to you? Just doesn’t make good business sense.
It’s no different to walking into a car dealership and placing an order for a new Land Cruiser, only to be told they will only sell you a car if you agree to buy 2 engines and 6 wheels.
Buyers and sellers, please don’t be a partner to this CON just to see the pockets of certain management rights salespersons get fatter. Say no!
Rorts like this belong in the 1970’s on the Gold Coast when the White Shoe Brigade ruled.
Our best advice is, wait for the next one, it will be along soon enough.
We would be very keen to hear from buyers of off the plan rights who have been confronted with this con by certain agents.