Property managers

Who is a property manager?

(Protection of Personal and Property Rights Act 1988, s.31)

A property manager is a person or trustee corporation appointed by the court to look after some or all aspects of the management of a person’s property, when that person wholly or partly lacks the competence to manage their own property affairs.

Who will the court appoint as a property manager?

(Protection of Personal and Property Rights Act 1988, s.31)

The court can appoint one or more persons over 20 years of age or a trustee corporation (for information see “Key definitions” in this chapter) to act as property manager. The court will, as far as its practical, find out what the wishes of the person are in relation to the appointment of a property manager.

The court will not appoint any person to be a property manager unless it is satisfied that:

the proposed appointee is capable of carrying out the duties of a property manager in a satisfactory manner, having regard to the needs of the person in respect of whom the application is made and the relationship between that person and the proposed appointee,
the proposed appointee will act in the best interests of the person in respect of whom the application is made, and
the proposed appointee consents to the appointment.

Note: No one in charge of an institution where the person is resident or having a potential conflict of interest will be appointed as a property manager.

Applications to trustee corporation to act as property manager

(Protection of Personal and Property Rights Act 1988, ss.32, 33)

The Act also provides that a person may apply to a trustee corporation (for information see “Key definitions” in this chapter) to manage their property, instead of applying to the Family Court for a property order.

Applications by the person affected

A person who is 18 years old or over and who considers that he or she lacks, wholly or partly, the competence to manage his or her own property affairs, can apply to a trustee corporation to act as a property manager.

Applications by other people when the estate is small

If the estate of the person in question is small (that is, the gross value is not more than $100,000), others such as a relative or doctor may apply to a trustee corporation for it to manage the person’s property.

In both cases, the application must be accompanied by supporting certificates from two doctors (one of whom must be an independent psychiatrist) and a statutory declaration from the person stating that they have received legal advice about the application. The application takes effect once it has been filed in the Family Court.

(Protection of Personal and Property Rights Act 1988, s.34)

Note: The person for whom the trustee corporation is acting can withdraw his or her property affairs from the corporation on seven days’ notice.

What does a property manager do?

(Protection of Personal and Property Rights Act 1988, s.38, Schedule 1)

A property manager is given a range of powers by the court for the purposes of managing the property of the person for whom they are acting. These powers will usually include the right to sell or let property, to carry out repairs, or to carry on a business.

(Protection of Personal and Property Rights Act 1988, s.36)

In managing any property, the paramount consideration of a property manager is to use the property for the promotion and protection of the welfare and best interests of the person. The property manager is also required to encourage the person to develop and exercise any competence he or she may have to manage his or her own property affairs.

Are there any limits on the property manager’s powers?

(Protection of Personal and Property Rights Act 1988, s.38, Schedule 1)

Yes. The manager only has the powers specifically conferred by the court including such of the powers in the Schedule to the Act as designated.

(Protection of Personal and Property Rights Act 1988, s.42)

Note: The powers of a property manager under a property order are also subject to the terms of any personal order made in respect of the person.

Does the property manager have to consult with anyone else?

(Protection of Personal and Property Rights Act 1988, s.43)

A property manager is required to consult, as far as is practical, with the person for whom the property manager is acting, and also with other interested people who are competent to advise the manager in relation to the management of the person’s property (for example, family members and service providers).

A property manager is also specifically required to consult on a regular basis with any welfare guardian who is acting for the same person. This is to make sure there is good communication and the interests of the person are looked after.

Are there any safeguards to stop a property manager abusing their power?

(Protection of Personal and Property Rights Act 1988, ss.45, 46, 49, 50, 87 - 89)

Yes. The following things help to prevent a property manager abusing their power:

A property manager must file a statement in court about the property that is being managed. The property manager must do this within three months of appointment and annually thereafter and upon ceasing to hold office. These reports are examined and reported on by the Public Trust or a chartered accountant appointed by the Public Trust.
A property manager is not paid for their services, so should not act out of financial motives. However, their expenses can be met (for information see “Does a property manager get reimbursed for their expenses?” in this chapter).
A property manager can be personally liable for his or her actions if they fail to disclose that they are acting as a property manager, or acts in bad faith or without reasonable care.
An application can be made to the court to review the decisions of a property manager.
The property order must be reviewed within three years and can be reviewed earlier on application.
As a result of a review, a new property manager can be appointed in the place of an unsatisfactory property manager.

Does a property manager get reimbursed for their expenses?

(Protection of Personal and Property Rights Act 1988, s.50)

All reasonable expenses incurred by a property manager can be paid for out of the property of the person for whom the property manager is acting.

A property manager is not entitled to any other payment for their services unless this is provided by any other Act, or the court directs it.