Change of Owner Wizard

This article guides you through the process of transitioning property ownership in Re-Leased using the Owner Change Wizard. When a property changes hands, certain financial adjustments need to be made to ensure a seamless transfer. We'll cover how to void and raise invoices, handle partway rental periods, update payment details, and more. It's also key to recognize that this wizard is only available as an option in the Client/Trust Accounting version. The Connected Accounting version has separate procedures for change of ownership and you may be required to create a new company for the new ownership and set-up new properties and tenancies in the new company.

 

Before proceeding with the Change of Owner Wizard, please ensure the following criteria is met:

• There are no arrears on the property up to the settlement date
• There are no part paid invoices on the property
• There is only one ledger attached to the property
• Funds are available on the owner's ledger to pay out for rent past the settlement date
• The new owner ledger is in the same client/trust account

If the answer is 'no' to any of the above, then using the Change of Owner Wizard is not an option. 

In that case, please refer to  Changing the Owner of a Property.

Understanding the Owner Change Wizard 

The Owner Change Wizard is a tool within Re-Leased that simplifies the process when a property is sold. Here's how it helps: 

• It voids rent invoices post-settlement paid to the previous owner and voids associated fees. 
• It raises new invoices payable to the new owner, posts previously received payments and calculates fees. 
• For changes occurring partway through a rental period, it generates a split invoice for that period. 
• It removes any BPAY creditors associated with the property. 

Note that if the previous owner has been paid out for rent beyond the settlement date, Re-Leased cannot retroactively change the invoices. Any necessary adjustments should be handled by the conveyancing solicitor during settlement. 

 

Preparation Before Using the Owner Change Wizard 

Before you initiate the wizard, make sure to: 

• Create a ledger for the new owner by navigating to Client/Trust Accounts and clicking the Owner Ledger Balance. Locate and click the New Owner Ledger button in the top-right corner, formatting it consistently with existing ledgers. Note that the property will not be selectable at this stage. 
• Ensure that the settlement date is not set in the future. 
• Confirm that the tenant has paid rent up to or beyond the settlement date. 
• Make sure all expense invoices are settled if maintenance commission applies. 

Important Considerations 

The Owner Change Wizard does not automatically update Repeating Invoice or Outgoings templates. Should these exist for the sold property, you'll need to manually adjust the templates for the new owner. Moreover, if the property is linked with a specific bank account under Re-Leased Pay, updating the bank account information is necessary. Refer to: 

• Updating Re-Leased Pay Accounts During a Property Ownership Change
• Amending & Updating Your Re-Leased Pay Account Details 

Initiating the Owner Change Wizard 

1. On the Property, click Property Details and select Change Owner. 
2. Enter the new Owner Ledger and Settlement Date. 
3. Configure your preferred options regarding rent and outgoings transfer and template updates. 
4. Click Save and Continue. 

Updating Rent Information 

On the update rent screen, you'll be presented with a summary of changes. It's here where Re-Leased will void and split invoices, reverse, and re-apply payments as needed. Be sure to: 

1. Review the Settlement Date and Owner Ledger information. 
2. Check the actions taken on Existing Invoices and ensure they align with the actual settlement details. 
3. Confirm that Existing Rent Templates and Outgoings Templates will be correctly updated upon your confirmation. 
4. Go Back to edit details or Confirm Change of Ownership to proceed. 

After confirming the change, you'll have the option to start a disbursement for the previous owner, though it is not required at this point. 

Handling property ownership transitions smoothly is critical for maintaining accurate records and ensuring compliance. By following these steps and understanding the process, you can manage these transitions in Re-Leased with confidence.