REIQ Best Practice Guidelines v03.23 - Flipbook - Page 74
16. INSURANCE
18. EMPLOYEES OF THE BUSINESS
Member Business Brokers should ensure the
Client holds the relevant insurance policies
necessary to conduct inspections at the place of
business (if applicable for the type of business).
17. ASSIGNMENT OF LEASES
(a) If the place of business is a leased premises,
Member Business Brokers must ask if a
prospective buyer intends to enter a new lease
with the lessor or assign the existing lease.
(a) Member Business Brokers must obtain details
about the business’ employees from the Client
to annex to the contract, including the names,
date of commencement, wage and position.
(b) Subject to Client instructions, Member
Business Brokers should not discuss the sale of
a business directly with employees of that
business or make any representations as to
whether the prospective buyer intends to offer
them employment after the sale has been
completed.
(b) Whether a new lease is entered or an existing
lease is assigned:
i.
the contract schedule must reflect the
buyer’s requirement for an assignment
of the existing lease or the new lease
terms;
ii.
Member Business Brokers should
direct their Client to contact the lessor
as soon as practicable after the
contract is entered into or becomes
unconditional (if appropriate), to
obtain its consent to an assignment or
new lease; and
iii.
if the property is a retail shop, as
defined by the Retail Shop Leases Act
1994 (Qld), the prospective buyer must
be provided with the relevant
disclosure documents and certificates
required under legislation.
Fair Work sets out
requirements for employees
when a business is sold
(c) If requested by the Client or their Legal
Practitioner, the Member Business Broker must
seek information from the prospective buyer
required by the lessor or their Legal
Practitioner to provide the lessor’s consent.
(d) If the business is subject to a franchise
agreement, the Member Business Broker
should direct the Client to obtain any relevant
consents from the franchisor. If the Client is
not aware of what consents they require, the
Member Business Broker should
direct the Client to seek legal advice.
REIQ BEST PRACTICE GUIDELINES
V08.23
74
