Property Management Handover Risk Review
Purpose of the risk review
A management handover can look orderly while concealing a cash shortfall, an auto-renewing contract, a missing statutory book or an account the building does not truly control. This review does not repeat the handover inventory. It asks what could stop incoming management from performing or proving its duties, what loss could result, and what must be closed before final acceptance.
Risk 1: unclear authority
If appointment resolutions are missing, the term has expired, or signing authority conflicts with the management plan or contract, banks and suppliers may stall or accept instructions from the wrong person. Obtain the resolution, plan and contract and map who may sign, collect and pay. Any transition period with no identified accountable manager is high risk.
Risk 2: missing books and resolutions
A missing decision book, important minutes or unexplained page gaps can make it impossible to establish what owners actually authorised. Law 634 gives formal records an important role in recording decisions, protocols, notices and expenses. Do not cure the problem by manufacturing retrospective resolutions. Record the gap, search for originals/lawful copies and obtain legal advice on remediation.
Risk 3: unreconciled money
A difference between the bank statement and books, unexplained cash or unsupported transfers is a direct financial risk. Freeze the cut-off balance, create a reconciliation for each difference and obtain source evidence. Do not sign a broad release before understanding the discrepancy and do not let incoming management start from an estimated rather than evidenced opening balance.
Risk 4: hidden payables and arrears
A positive bank balance can coexist with supplier invoices, service obligations, approved works, tax items or near-term contractual payments. Search for liabilities outside the bank statement. On the other side, review owner arrears, collection status and collectability. Net position matters more than the headline bank number.
Risk 5: misunderstood contracts
Automatic renewal, long notice, price escalation, a personal guarantee or an obsolete service can bind incoming management. Build a contract register and read the governing agreement, not only the last invoice. Where a contract is in the outgoing manager’s personal name instead of management, assess continuity/transfer before disrupting an essential service.
Risk 6: deferred maintenance
Delayed elevator, fire-system, pump, roof or leak work can turn an administrative gap into immediate safety and cost exposure. Obtain service reports, faults, warranties and approved-but-unfinished works. Classify backlog as urgent safety, damage prevention, compliance, comfort or improvement; do not hide it inside “normal maintenance.”
Risk 7: insurance or claim discontinuity
An expired policy or claim without a reference and owner can lose rights or create a coverage gap. Review each policy, insured party, dates, limits and open claims. Do not assume DASK is the same as broader property or liability protection; separate products according to their actual scope.
Risk 8: undisclosed legal file or complaint
A lawsuit, enforcement matter, formal notice or unimplemented owners’ resolution can impose an immediate deadline and cost. Obtain a legal-matters register with file number, next action and adviser. “No problem” is not enough if legal correspondence or official notices exist in email or paper files.
Risk 9: digital access depends on one person
If official email, backups, supplier portals, cameras or even bank codes depend on the outgoing manager’s personal device, there is continuity and security risk. Move accounts to authorised institutional ownership, change credentials, apply appropriate authentication and maintain an access register. Do not demand transfer of personal passwords that should not be shared.
Risk 10: oral handover with no signed minute
“We gave them everything” does not prove balances, keys or files. A detailed minute with exception schedules protects outgoing and incoming management and owners. Every gap needs an owner and deadline. If a party refuses to sign, document the refusal and available evidence and obtain legal direction.
Risk classification
- Low: authority, books, balances, contracts, assets and files reconcile; remaining items are minor administrative points with short deadlines.
- Medium: defined gaps do not prevent operation but require a specific document or reconciliation within a known period.
- High: financial difference, material unknown contract, missing core record, deferred safety work or legal file without controlled follow-up.
- Critical: no clear authority, inability to access money/systems, suspected loss or misuse of funds, or an immediate safety exposure.
Response plan
For each risk record evidence, impact, likelihood, owner, action, deadline and proof of closure. Do not let many medium items disappear into a label of “normal transition”; evaluate their combined effect. After 30 days, rerun the risk register against the signed handover. Outstanding items remain visible to owners until they are genuinely closed.