How to do a manual change of Property Ownership

Sometimes a Property is sold but you are keeping the management with the new owner. There is a wizard to do this now, click here for instructions or you can do it manually as below.

Please note that you will need to still do the manual transfer if the settlement date is older than the current month.

NOTE: If the Property has been sold and you have lost the Managment, some of the instructions below still need to be followed.

NOTE: While these are the instructions for handling this scenario in Palace, you still need to understand legislation in your state/country.

Please note the following details that you may need to know before you start this process;

  • Settlement Date for the Property
  • Who is getting the rental money (know which portion of rent is going to the old owner and what portion is going to the new owner). A solicitor may do this for you.
  • Is the Property Manager for the new owner going to be the same as the old owner? Who is paying for any outstanding invoices?
  • New owner details, if staying with your company
  • When is the money due to be paid out to the old owner (at settlement date or at the end of month)?

Step 1 - Duplicate the Property

  1. Enter the new owner details and the bank account details.
  2. Go to the Property List, find the Property, click on the drop-down menu next to EDIT and select the option Duplicate.
  3. Find the new owner in the pop-up box and click Save.
  4. A new Property will be created, it will be displayed at the top of your Property List with an * in front of the sort code.
  5. Go back to the old property and click on EDIT. Put zz in front of the street name (this will take the property to the bottom of the Property List, to wait for you to archive it).
  6. Make the property inactive and click Save.
  7. Go back to the new property and click on EDIT. Delete the * out of the sort code.
  8. Link the Property to the correct owners' bank account.

Make other changes as required.

Step 2 - Duplicate the Tenant

  1. Find the tenant in the Tenant List and click Edit.
  2. Enter the Vacate Date (which is the Settlement Date).
  3. Click Save, select No to making the property available, No to removing scheduled inspections, but a good idea to say Yes to putting the owners funds on hold.
  4. Go back to the Tenant List, click on the drop-down menu on the Tenant and click Duplicate.
  5. Select the new property out of the list, click Duplicate.
  6. A new Tenancy will be created, it will be displayed at the top of your Tenant List with an * in front of the Sort Code.
  7. Go back to the Old Tenant, and click Edit. Put zz in front of the Sort Code (this will take the tenant to the bottom of the Tenant List, to wait for you to archive it). Click Save and close.
  8. You can now see if there is a tenant refund needed (money to be paid to the New Owner from the Old Owner) or if the tenant will owe arrears to the Old Owner. Check the figures using the Summary of Rent Report
  9. Now go back to the New Tenant, click Edit and take out the *, take out the End Date, and change the Start Date to be the day after the Settlement Date. Click on Save and Close. If needed, make an adjustment for a few days at the current Rent Rate, then add the Rent Change for the full week.
  10. If there is an overpayment of rent (eg. the tenant shows a refund is due) then reverse the last receipt that the tenant paid and re receipt it, putting one amount into the Old Tenant and the remainder into the New Tenant.
  11. If the tenant is in Rent Arrears, then you need to make a note that the tenant needs to pay back the arrears into the Old Owner account. Check that the Solicitor has not already taken this into consideration in the Settlement payment. Alternatively, set the New Tenant records Start Date to the day after the paid-to date of the Old Tenant record. 

NOTE: You have now created a New Owner, Property and Tenant. You will be able to archive the Old Owner and Property once you have rolled month end. You may be able to archive the Tenant straight away if all funds are clear.

NOTE: You also need to check if there is any current tenant debt (eg. Water Rates). These will also need to be cleared with transactions between the two Tenant records.

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