Changing the Owner of a Property

  • Updated

This article will equip you with the knowledge to seamlessly change the property ownership. Changing property ownership is a sensitive task that should only be done after all financial obligations to the former owner are settled. We will guide you through setting up financial ledgers for the new owner, adjusting invoices related to the tenancy, and updating associated settings to reflect the change. 

When to Change Property Ownership 

Before adjusting property ownership records, ensure the following: 

  • The tenant has cleared all pending dues to the previous owner. 
  • You disburse the outgoing owner all owed funds after collecting your fees and settling any creditor balances. 

Setting Up the New Owner's Ledger 

  • Navigate to the Client/Trust Accounts tab and select Owner Ledger Balance
  • Select New Owner Ledger and format the name consistently with existing ledgers. 

Note: The property will not be selectable at this point. 

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Handling Rent Invoices During Ownership Transition 

If the changeover happens during an active rental period, follow these steps: 

  1. Void the current rent invoice if it includes the date of ownership transfer. 
  2. Use generate once-off rent invoice to create two separate invoices for the time frame, paying attention to ledger selection. 
  3. Ensure you receipt and disburse funds due to the former owner before handling any proceeds for the new owner. 

Reconciling Payments with the Tenancy Ledger 

The tenancy ledger should reflect any discrepancies between the bank statement amount and the sum due to the former owner. After reconciling and disbursing necessary funds, apply any remaining tenancy funds to the new owner's invoice. 

Fee Rate Adjustments 

In cases where the incoming owner has a different management fee rate, update the fee regulations before acknowledging the receipt of new payments.

Updating Re-Leased Pay and Other Settings 

Should the property be linked with a designated bank account under Re-Leased Pay: 

Refer to our guide on how to update Re-Leased Pay settings for ownership changes: Updating Re-Leased Pay Accounts During a Property Ownership Change

Linking the New Owner's Ledger 

Finally, associate the new owner's ledger with the property and tenancy: 

  1. Under the Property in the Ledgers tab, add the new ledger details changing the default ledger to link with the property. 
  2. Within Tenancy under the Rent & Outgoings tab, update the ledger on current and future rent templates. 
  3. Edit the ledger on any outstanding invoices that pertain to the new owner under the Invoices & Credits tab. 

Completing these steps will help ensure a smooth transition of property ownership. This careful approach minimizes financial errors and keeps records consistent for both the present and future property owners. 

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