Disclaimer: The information provided in this article is for general guidance only. It does not constitute legal advice and should not be relied upon as such, as it does not take into account the specific circumstances of your agency.
This is for your guide only.
Last week we posted the first part of a three part video we recently recorded with Sarah Heuvel from SWAAB. Sarah has over 10 years experience as a licensed real estate agent professional but more importantly she has used this experience to assist and help many real estate professionals and agencies with rent roll transactions, acting for both Sellers and Buyers.
We discussed what we’re both seeing in rent roll transactions, but more importantly what we’re seeing in Proof of Identity, Ingoing Condition Reports and Lost Managements – Retention, as part of the compliance of a successful sale. Proof of Identity (POI) was covered as it has caused much confusion, pain and debate with preparing compliant management agency agreements in transactions.
Today we discuss Ingoing Condition Reports, and how they impact a sale as a key right to reject or right to a discount in contracts, but also how important they are as a critical item in handover property files, and how they impact the compliance of a management agency agreement.
The law requires a signed and dated written report from the agent. While an agent’s signature is what is required for a valid ingoing condition report, the tenant’s signature is the crucial safeguard or best practice. Missing signatures, or missing reports altogether, are often red flags for purchasers and can significantly affect the outcome of a transaction.
But questions remain:
- Is it necessary for an ingoing condition report to include photographs?
- What happens if the report is signed by the tenant but not by the agent or visa versa?
- What do purchasers and vendors really need to be aware of when it comes to ingoing condition reports?
Let’s find out in the video with Sarah.
Ingoing condition reports are more than a formality—they are a compliance cornerstone that protects landlords, tenants, and agents alike. Strong reports reduce disputes, safeguard bonds, and directly influence the success of a rent roll transaction.
For vendors, taking the time to ensure ingoings are complete and accurate can directly protect portfolio value during a sale. For purchasers, carefully reviewing these reports during due diligence helps uncover gaps that might later result in disputes or financial loss. Both sides benefit when ingoings are handled properly, as they create certainty and reduce the chance of conflicts down the track.
Ingoing condition reports are more than a formality—they are a compliance cornerstone that protects landlords, tenants, and agents alike.
Stay tuned for Part 3 of our video, where Sarah will discuss Lost Managements and Retention.