The Manager’s Real Estate
In general terms, the common real estate components of a management rights sale can include the manager’s unit, a separate office-reception area, storage or linen rooms and car spaces. It is often the case however that there is a combined manager’s unit and office on a single certificate of title, although it is fair to say that the larger the complex, the larger the real estate component.
This Real Estate that forms part of a management rights business is, broadly speaking, directly linked to the Caretaking and Letting Agreements. These two documents, despite various titles eg Caretaking Contract or Letting Agents Service Agreement etc, generally (but not always) state or identify the manager’s lot.
Here are two examples:
- “Caretaker’s Unit” the Lot in the Scheme that is owner or occupied by the Caretaker, that is Lot 1 in SP123456.
- “Manager’s Office” means that part of the Manager’s Lot which is used as an office for the Caretaking Business.
Note that in the second example, the Manager’s not clearly identified.
In the valuation assessment of the manager’s real estate, regard has to be had to the most recent sales within the complex together with the last sale, if appropriate, of the manager’s unit. We also consider recent sales of manager’s units within comparable complexes.