The notion of management rights is not new in Australia. The concept was first established in Queensland before spreading to the rest of the states. Currently, many businesses sell management rights around the country. Getting a genuine seller should not be a problem, although it is still important to take necessary precautions before entrusting your money to someone.
Here are four ways to avoid getting screwed while buying management rights:
Deal with a licensed seller
Before you do any transaction, find out if the company is authorised to do the business. If you intend to invest in the tourism industry, you can work with a company specialising in marketing and sale of tourism and accommodation-related businesses. Ensure the company is licensed in all states and territories in Australia. Determine whether the company has been assisting people to make management rights purchases for several years already, like management rights for sale in Sunshine Coast.
Verify all information
Working with a good agent and developer is a prudent step when buying management rights. Chances are they will provide accurate information about the prices of the management rights and the profits you are likely to make. However, verify all this information and be wary of estimates that sound too good to be true.
Work with your lawyer
Get an experienced lawyer who can offer guidance throughout the process of purchasing the management rights. Your lawyer should be able to note any significant issues in the agreement and identify any potential risks before you sign the contract.
Establish the reputation of the developer
Find out if you are working with a reputable developer. Determine if the developer has a good track record. If there are other buildings by the same developer, talk to the managers there and find out what help they will offer you. Do your research on the selling agents to confirm you are working with credible people.
Getting a trustworthy management rights seller is not an easy task. Often, people get ripped off. It is wise to be watchful, and with the tips given above, you can steer clear of being scammed when buying your management rights.