Kapitol Brokers

Frequently Asked Questions

What is an MLR?

Sometimes you hear Management Rights referred to as MLR, this is just an abbreviation for "Management and Letting Rights".

Why is the licence referred to as restricted?

The restricted licence allows you to manage units only in your building, it does not allow you to operate letting in other non-adjoining buildings or to operate as a sales agent.

Can I sell units in my complex to bring in more income?

No, you would require a full estate agents licence.

Is it difficult to get a Restricted Letting Agents Licence?

No, it is relatively easy. The required course is approximately one-week full time. refer to our resource section.

What is the Body Corporate?

The Body Corporate consists of all the individual unit owners in the complex.

What is the Body Corporate commitee?

The committee is the leadership roles of the body corporate, these members are voted into positions to make decisions on behalf of the body corporate.

Who is the Body Corporate Managers?

The body corporate managers is a company who specialises in handling the legal and financial affairs of the body corporate. The body corporate managers pay the salary of the onsite resident manager on behalf of the body corporate.

Do I have a say on the body corporate committee?

Yes, under the act it state that all resident unit managers are automatically members of the body corporate committee, however they are present in a non voting capacity.

What extra costs do I have to budget for when purchasing Management Rights?

The general rule when purchasing Managment Rights is to allow an extra 5% of the purchase price to cover:

Stamp duty costs
Accountant fees
Legal fees
Finance application fees
RLA licence fees

Can I use my current lawyer and accountant?

Management Rights are a specialised industry, we strongly recommend you enlist the expertise of industry specialist. This ensures you receive the most up to date advice and will also save you money during your acquisition.

What is the difference between an office being "on title" or "exclusive use"?

The term "on title" means the office is owned by the manager and is included in the freehold purchase. When the office is "exclusive use" means the office is on common property and the manager is granted exclusive use by the body corporate for the term of the agreement.