Managing your Mandate - Asset Sold or Mandate Cancelled

In the event that an Asset is sold, or the Landlord has cancelled his Mandate, this feature enables your to:

  • Cancel the existing Mandate for an Asset and record the reason of cancellation
  • Load a New Mandate for an Asset when an Asset is sold and the ownership changes
Exception - Asset Group (with Basic or Full Accounting)
You will not be allowed to cancel a mandate or load a new mandate for an Asset that is part of a Building since ownership of a Building is defined on Building level.

How to cancel an existing Mandate

Note: You will only be allowed to load a new mandate for an asset once you have cancelled the existing mandate. The cancellation information will be available in the Asset Export file for all mandates that has been lost and where the agency will no longer be managing the Asset. You can load the Cancellation as follows:
  • Navigate to the Asset DB of the mandate you wish to cancel
  • Click on the Mandate tab. The current mandate will be displayed by default
  • Click on the Cancel Mandate link just above the Start Date field as shown below. The Cancel Mandate fields will be displayed.
  • Complete the cancellation fields
    • End Date - the date on which the Mandate will end.
    • Cancellation Reason - select the option from the drop down list provided
  • Clear Cancellation - click on this link to delete the cancellation
  • Save - click on this button at the bottom to save the Cancellation information.
Note: When there is a change of ownership for an Asset, you will have to load a new mandate for the Asset. The new mandate will have its own set of Accounts (Tenant and Landlord) associated so that all financial information information associated with the previous owners is preserved for future reference. 

To load a NEW Mandate :

  • Navigate to the Asset DB of the Asset for which you want to load a new mandate
  • On the Asset label (top right), click on the down arrow to view the list of all mandates for the Asset. You can use this drop down to select any mandate and then navigate from here to information associated with any previous mandate.
  • Select "Create New Mandate" from the drop down list to open the New Mandate form as shown below
    • Mandate Type - select option from the drop down list
    • Commission Type - select option from the drop down list
    • Link Landlord Contact - select an existing Contact from the drop down list or click "Create New Landlord Contact" to load and link a new landlord contact.
    • Link Landlord Beneficiary - select an existing Beneficiary from the drop down list of click "Create New Landlord Beneficiary" to load and link a new landlord beneficiary.
  • Click the Create button to create the new mandate. It should now also be available in the drop down list from the Asset label at the top.
  • Make sure that the correct Mandate is selected and click on the Mandate tab to view all the other Mandate specific fields. Update and change where necessary:
    • Start Date - the start date of the Mandate
    • Additional Settings - these would be completed with default values taken from the Company Settings where applicable. These settings can be amended here to customize.
    • Landlord Domicilium Address - remember to enter the address for the new Landlord if you want to include this on Lease addendums.
    • Agent information - agents are associated with a specific mandate and can therefor change when ownership for an asset changes.


How to activate a new Mandate

New Mandates in RAMS are not automatically activated due to the many factors that might affect the actual activation date. We have therefor implemented an easy process that you can follow to activate the new Mandate when the time comes:    

  • Navigate to the Asset that needs activation of the new mandate
  • Select the new mandate to activate from the label drop down list at the top
  • Click on the mandate tab
  • Click on the blue "Make Current" link at the top right of the mandate form to activate the new mandate as shown below:
Note: Activating a new mandate has the following affects:    
  • When you open the Asset DB or navigate to the Asset DB, the current mandate will be displayed by default. You can however view other mandates by selecting them from the label drop down list.
  • When you open the Accounts DB or navigate to the Accounts DB, the Account set associated with the current mandate will by default be displayed. This includes the configuration of Categories and associated Beneficiaries. You can however view other Account Sets associated with other mandates by selecting the other mandate from the label drop down list on the Accounts DB.
  • When you create a New Lease, the current mandate will always be used to fetch the Landlord related information for the purposes of the default Account configuration of Categories and Beneficiaries. This can however be changed on the New Lease form by selecting a different Mandate from the Mandate drop down list on the Lease form. 


How to manage your Mandate when an Asset is "Sold"

When a property is sold, ownership of an asset changes on the date of transfer of the Asset into the name of the new owner. This scenario essentially means that the current mandate of the seller is replaced with a new mandate of the buyer if the buyer decides to continue to make use of the agencies asset management services. In RAMS, the following process needs to be followed:  
  • Cancel the mandate for the Current Owner (Seller) as outlined above. Typically the End Date of the current mandate would be the last day before the transfer date.
  • Load a new mandate for the New Owner (Buyer) as outlined above. Typically the Start Date of the new mandate would be the transfer date associated with the sales transaction.
  • If the new owner decides to take over the current Lease, the following additional steps needs to be followed to create a new Lease in the name of the new owner:
    • Schedule an exit for the current Tenant. The exit date would typically be the last day before the transfer date.
    • Create a New Lease and select the New Owner Mandate and the current Tenant as parties to the new Lease. The Start date should typically be transfer date. 
    • Finalise the terms of the new Lease.
    • Compile new Addendums for the new Lease and get them signed.
    • Remember to remind the Tenant to use his new Wallet reference for all payments made with effect from the transfer date.
    • On the Account Set for the new Lease
      • Configure default Categories and references where applicable
      • Configure default Beneficiary links for Categories
    • On the Transfer Date
      • Use journals to transfer Tenant Balances to the new set of Tenant Accounts
      • Transfer any available funds in the Tenant wallet of the old account set to the new Tenant wallet of the new account set.
      • Release Tenant Deposit from current deposit account
      • Re-invest Tenant Deposit into new Tenant deposit account.
  • On the transfer date, navigate to the new mandate and activate the mandate by clicking the "Make Current" link as explained above.


Lost Mandate statistics

Since we will now be capturing the reason why a mandate is lost and the associated dates, you can get some handy management stats. The mandate lost date and reason will be included in the Asset export file. To export Mandate lost stats:
  • Navigate to the Asset DB
  • From the Options menu, select "Export Assets"
  • An excel file will be downloaded
  • Note that where a Mandate has been lost for an Asset, the Mandate End Date and reason will be included in the file. You can now use the filters in excel to get some stats on the reasons why mandates were lost as well as the number of lost mandates for a period.
Note: If a new mandate is loaded due to the property being sold, the mandate is in fact not lost and therefor not part of the stats.

Things to take note of :

  • During the transition period and before the old Lease is archived, the same Tenant will have two wallets (one for the previous and one for the new lease). When mapping tenants payments on the Banking Panel, you will now see two wallets for the same tenant. Note that the Wallet Reference with the larger number will always relate to the New lease. 
  • When you create a new Lease for the New Landlord and existing Tenant, a new Account set will be created. You will be required on or after the transfer date to release the Tenant Deposit from the old Deposit Account and then re-invest the Tenant Deposit into the new Tenant Deposit Account. To do that you will:
    • Release the Tenant Deposit from the old account
    • When the Tenant Deposit is available in the old Tenant wallet, transfer the Deposit plus Interest to the new Tenant Wallet.
    • Make a payment to the Investment Account from the new Tenant wallet.
    • Do a debit journal against the Deposit category on the new Tenant Account to show that the Tenant Deposit was transferred to the new Lease.
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