However, rent rolls are regulated by the Estate Agent’s Act and it is important that the contract to buy or sell the rent roll is done properly. As a purchaser, you must ensure that you know exactly what you are buying.
For example:
- Have you done your due diligence in relation to the properties on the rent roll? Are there valid and binding authorities in place?
- If taking over the business premises, is there a lease in place? It is important to understand the obligations you’re entering into with respect to the lease and whether you have security of tenure
- Have you conducted searches in relation to the vendor and any potential security interests it may have over any assets? You need to ensure that you obtain the rent roll free of encumbrances
- Is the purchase price an accurate and fair representation of the number of properties being sold? Are you likely to keep all of the properties after settlement occurs? How many landlords does the rent roll comprise?
- What will happen to properties that are terminated shortly after the transfer or settlement occurs? Will you get your money back? What happens if you lose a lot of properties will you be covered?
The above is just a short list of the many things that need to be addressed and understood within your contract of sale.
The purchaser isn’t the only party needing to ensure the contract appropriately and accurately suits their needs. Vendors need to consider restraints of trade on the purchaser, what, if any, warranties will be provided to the purchaser, how adjustments are to be calculated and making sure that any retention amount is dealt with clearly and fairly.
If you’re thinking about selling your Rent Roll, or are considering purchasing an existing one, TLFC can assist to ensure the contract of sale adequately reflects your needs and ensure a smooth process to settlement.
For more information or to seek assistance with your Rent Roll, please contact a member of our Commercial Law team.
Disclaimer
The material contained in this publication is meant to be informational only and is not to be construed as legal advice. Tisher Liner FC Law will not be held liable or responsible for any claim, which is made as a result of any person relying upon the information contained in this publication.
