Role of Accountants

When purchasing, the purchasers accountant has a very important role to fill in Management Rights sales. After signing a contract on the building of the purchaser's choice, the accountant physically attends the building to verify the figures quoted in the contract.

Following the purchase, the business of letting is governed by the Property Agents and Motor Dealers Act. This Act requires that rentals collected be banked to a Trust Account. From this account some items may be withdrawn, such as commission, cleaning and linen hire. This account is to be audited by an accountant. The accountant is required to make two unannounced visits at the building and a final visit to complete his report each year. The audit is similar to that required of Real Estate Agents and Solicitors Trust Accounts.

The audit fee varies depending upon the size of the building, the complexity or simplicity of the accounting system, the abilities of the manager at bookkeeping etc. The accountant has another role in the operation of the business. This has two aspects. In the first instance, he will be involved in setting up the books for operation of both trust account and the manager's own account. Often the books operated by the previous manager are adequate and the accountant assists the manager to become familiar with the system. The other aspect is the annual preparation of accounts and income tax returns.

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A solicitor can Make It Happen by offering professional services that protects a client’s interests in relation to the following:

• Examination of Contract of Sale
• Commissioning a Body Corporate Search
• Analysing Minutes of Body Corporate meetings and related documents
• Preparation of transfer of deeds to:
  • Title
  • Assignment of Management Rights (Deed Of Assignment)
• Correspondence, dialogue, briefing and liaison with:
  • Financier
  • Body Corporate's solicitor
  • Vendor's solicitor
• Arranging Settlement of the purchase
• Arranging stamp duty protocol

Finance is readily available for Management Rights through most banking institutions, lending between 50% and 60% of the total value of the Management Rights. Some financial institutions have been in the Management Rights business for a number of years and it is advisable to seek advice from a number of them and from our agency before making a final decision.

It is a normal practice for banks to finance the Managers Unit on a housing loan at very reasonable rates and the Management Rights is then financed on a business loan at a slightly higher interest rate.

A body corporate manager is a person who is engaged by the body corporate to provide, including through the exercise of delegated power, administrative services to the Body Corporate.

The usual responsibilities of a body corporate manager include:

• Prepare and forward notices as required by the Act
• Prepare notices of committee and general meetings
• Attend and prepare minutes for committee and general meetings
• Attend to matters resulting from general and committee meetings
• Attend to all correspondence
• Keep the books, records and roll
• Levy owners and collect their contributions
• Prepare statements of account and annual budgets
• Effect all insurances and submit claims

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QRAMA - Queensland Resident Accommodation Managers association. This is an organisation comprised of Managers who meet regularly to discuss topics related to the industry. QRAMA also has a social role of organising golf days, lunches etc for Managers.

OTHERS - There are a number of smaller groups of Managers who organise Managers lunches and dinners, race days and a host of social events. For more information contact our office on (07) 5572 0255 or justrights@propertypacific.com.au.

RESORT NEWS - This is a monthly magazine published for the sole use of intending and resident managers with articles avidly read by a wide range of managers.

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