The purchase process

Purchasing management rights is a complex process, but it needn’t be complicated.

Although there is a natural flow from one stage to the next, it’s important to understand the relationships that exist between each stage of the purchase process.

We’ll take you through the typical process for obtaining Suncorp finance and purchasing management rights and work with you to ensure you understand what is required and feel comfortable with the process.

A step by step guide

If you are considering purchasing rights for the first time, this guide will help you understand what needs to be done – why, and when – to ensure there are no surprises or unnecessary delays.

The sequence of events assumes that each step is successfully completed in turn. If the process falters at any step, it can have a domino effect and throw the process off-track. For instance, if a vendor rejects your offer to purchase (Step 3b) you would go back to Step 2 (select another business to buy). If your finance is not approved (Step 10c) we would not provide the Letter of Offer (Step 11).

If you have any questions about any step, please contact your accountant, lawyer or Suncorp Management Rights Specialist.

Step by step guide

	Ask Suncorp to pre-qualify you for finance
	Select the managment rights business you would like to purchase Talk to your accountant about setting up your business structures
	Make an offer to purchase the management rights (usually through the agent) The vendor accepts your offer (subjective to some negotiation) You complete and submit a formal Sucorp finance application form
	Have your solicitor prepare the contracts All parties sign the contracts
	Commence the course for a Restricted Letting Agent’s licence Apply through the Office of Fair Trading for a Restricted Letting Agent’s Licence and an authority to operate a trust account
	Ask your accountant to complete a net profit verification report on the business you intend to purchase
	Suncorp completes a valuation report, or Requests a licensed valuer to inspect and complete a report
	We ask our solicitors to complete due diligence, or Request your solicitor to provide us with a certification
	Your accountant provides us with the net profit verification report We provide a copy of the report to our valuers
	Valuation report is completed by Suncorp or an external valuer Credit submission is completed Suncorp notifies you about the outcome of your finance application
	We provide you and your solicitor with our Letter of Offer
	Suncorp reports the outcome of their due diligence to your solicitor, or Your solicitor provides Suncorp with certification that due diligence has been conducted and is satisfactory
	Suncorp reports the outcome of their due diligence to your solicitor, or Your solicitor provides Suncorp with certification that due diligence has been conducted and is satisfactory
	Suncorp opens a trust account for your business. You cannot operate this account (it is ‘blocked’) until we receive an authority for you to operated a trust account from the Office of Fair Trading (Step 19) Suncorp make preparations to install your EFTPOS and electronic banking services Suncorp arranges quotes for insurance
	The body corporate committee meets and decides whether it will approve the assignment of the management agreement and letting agreement to you
	Suncorp receives all signed security documentation
	Suncorp’s solicitors issue settlement certification, or Suncorp completes internal settlement certification
	The Office of Fair Trading issues you with a Restricted Letting Agent’s Licence The Office of Fair Trading issues you with and an authority to operate a trust account You provide Suncorp with that authority and we activate your trust account
	Settlement takes place Suncorp proceeds with the installation and activation of your EFTPOS and electronic banking services

Click here for the step by step guide.