(1)This section applies if the remainder of the term of the letting agent’s authorisation (the transferred authorisation), including any rights or options of extension or renewal, is less than 7 years when transferred to a person (the transferee) under this division.
If the authorisation was given for a term of 5 years with 4 rights of renewal of 5 years each and 5 years have expired, the remainder of the term is 20 years.
(2)On the transfer—
(b)the body corporate must—
(i)authorise the transferee to conduct a letting agent business for the scheme; and
(ii)if a service contract formed part of the transferred management rights—engage the transferee as a service contractor.
(3)The authorisation and engagement must be given for a term of 9 years starting immediately after the transfer.
(4)Subject to subsection (3)—
(a)the authorisation must be given on the terms applying to the transferred authorisation immediately before the transfer; and
(b)unless the body corporate and transferee agree otherwise, the engagement must be given on—
(i)the terms applying to the transferred service contract under subsection (5); or
(5)The engagement must be given on the existing terms of the transferred service contract as changed under a review advice about the contract if—
(a)the review advice states how the contract’s reviewable terms should be changed to ensure they are fair and reasonable; and
(b)the body corporate gave the letting agent a copy of the review advice as required under section 149(1).