Sometimes a property is sold but you are keeping the management with the new owner. Our property transfer wizard will handle the transfer for you, including creating a new version of the property/tenant as well any movement of funds that need to be allocated from the old owner to the new owner.
You will need to have administrator permission to be able to use this feature.
NOTE: These are the instructions for handling this scenario in Palace, you still need to understand any relevant legal requirements affect the transaction.
Before you start, you must have the following info ready:
- The settlement date for the property
Note: If the settlement date is in a previous month, this is because of Audit reports, they are created at the end of each month and if you make a change that affects a previous month it will affect the Won and Lost Audit reports so you will not be able to use the Wizard, you will have to do it manually. How to do a manual change
- Know If the solicitor is handling the movement of funds
- Know if the Property Manager for the new owner going to be the same as the old owner?
- Know who is paying for any outstanding invoices?
- The New Owner details
- The new owner takes over the day after settlement. This means all money leading up to and including the settlement date belongs to the old owner.
- If you use Strict Audit Yes (Owners) or (Properties), please ensure that the property being transferred has enough funds to perform the transfer as the strict audit setting will prevent funds from being moved - All details will be displayed within the wizard and in the changelog.
- Go to the Property List
- Select the relevant property
- Click on the drop-down arrow next to the Edit button
- Choose Property Transfer
In our first step, there is a list of things you must read and understand before you proceed to step 2.
Enter the settlement date and confirm if the solicitor is handling the movement of any rent portion.
NOTE: If you set the solicitor toggle to YES, you will still see the rent in credit balances, however, no transactions will be processed and all monies will remain where they currently are.
Select yes to confirm you understand and accept the terms stated in this step and click next.
In the second step, we take a look at the property. You have a few compulsory selections that require action before being able to move to the next step -
New Owner: To start, you will need to select who the new owner is for the property (if you have not set up your new owner yet, you will need to close out of the wizard and set them up).
Inactive & Active Reasons: Next, select the 'inactive reason' for the original version of the property as well as the 'active reason' for the new version of the property.
The following sections are all optional.
Diary Entries: Decide whether you would like to move all existing diary entries from the original property to the new.
Inspection Charges: If you opt to leave the diary entries and set the toggle to 'no', you will note that the toggle to move the inspection charges will become available. This again is completely up to you on whether you carry on the inspection dates from the original property, or you can create a brand new schedule outside of the wizard.
TradeMe: The TradeMe toggle will only appear if your property is currently advertised to TradeMe, giving you the option to remove the current listing and re-upload it (this is optional).
NOTE: If your property is not currently advertised on TM, you will not see this option displayed.
NOTE: All existing details from the property will be copied across to the new version. This includes all publish/advertising information, H&S information as well as Custom Field values. Only advertising images are copied across, so you will need to download and re-attach any relevant files from the H&S tab. You will need to adjust any settings on the original & new versions of the property that are required post-transfer, especially if you are advertising to a site outside of TM (please see post-transfer notes below)
The third step is all about the tenants. The information displayed on this window is based on the tenants paid to and end dates, compared to the settlement date that is entered back in step 1.
Here is the most common scenario's that you may come across and what you can expect to happen with the tenancies:
- The tenant vacate date is greater than the settlement date: The tenant will be moved with the property to the new owner. The original tenant will have the end date to match the settlement date. Whilst the new version of the tenant will have their start date set to the 'day after" the settlement date. Our new version of the tenant will also have their end date copied across from the original (keeping the original vacate date intact).
NOTE: If the tenant is paid passed the settlement date, you can expect to have funds moved across from the old to the new owner.
- The tenant vacate date is less than or equal to the settlement date: This means the tenant will not be moved and therefore will not show up in this step.
- The tenancy is current and the paid to date is greater than the settlement date: The tenant will be moved with the property to the new owner. The wizard will calculate the rent portion between the settlement date and the current paid to date and move these funds across to the new version.
- The tenancy is current and the paid to date is less than or equal to the settlement date: If the tenant is not paid up to the settlement date, you can expect to have the tenant moved across with the property, however, there shouldn't be any movement of funds.
- The tenancy has a start date that is greater than the settlement date: The tenant will be moved across to the new owner with the original start date copied across. The original version of the tenant will have their vacate set to be the 'day before' the start date which will allow you to archive them post-transfer.
The 4th step allows you to adjust the commission for the new version of the property. You will get a preview of the existing commission %, so you have the choice of matching this or adjusting it before the system creates a new version.
The Transfer Notes will be copied and saved under each version of the property (old and new) under the notes tab, along with a summary of the transfer once the process is complete.
The final step displays a summary of the transfer. This step gives you the property address details, the current and new owner names along with the money that will be transferred from the old to the new owner (if applicable).
Read carefully and then confirm that the details above are correct. (This cannot be undone so check carefully)
Then click submit
Post Transfer Details:
- Advertising: As mentioned in step 2, if the property was being advertised to any site outside of TM, you will need to make adjustments to both properties. This means, changing the publish online settings on the original property to avoid having two copies of the property being advertised.
- Transfer Statements: Under each owner diary, you will find a copy of the transfer statement. This statement will display all the information shown in step 5 and is a .pdf copy ready to be downloaded or printed.
- Tenant Details report: Under each version of the tenant, you will find a copy of the tenant details report.
- Important: If the money could not be transferred as part of this wizard because the owner did not have the funds. IT MUST BE PROCESSED MANUALLY WHEN THERE IS MONEY. There is NO pending charge