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Passive Partnership Administrator · neutral
The Passive Partnership Administrator
The neutral organisation that holds the whole arrangement together. A not-for-profit that
administers the ownership register, receives and pays the fees each week, sets fees against objective
rules, and acts fairly for both partners — with no incentive to push the numbers in anyone's
direction.
Who they are & why they exist
The model only works if the body that records ownership, calculates fees, and re-prices against the
market is trusted equally by both partners. A non-profit, working to objective rules tied to an
independent property index, is the simplest way to ensure neither side is being squeezed.
The Passive Partnership Administrator doesn't own the property and doesn't take a profit — it recovers its costs through a
modest fee. Its job is administration and fairness: keep the register accurate, move money correctly,
and follow the agreement's rules exactly the same way every time.
Key facts
Structure
Non-profit
cost-recovery only
Administration Fee
0.28%
of property value p.a.
Register
Quarterly
updated every quarter
Funds
Weekly
receives and pays fees weekly
Records kept
7 years
after the agreement ends
Rights & obligations
What it does (its role)
- Updates the ownership register each quarter (index, top-ups, valuations)
- Receives all payments and pays the occupancy fee on to the Passive Owner
- Receives and pays fees weekly
- Provides quarterly statements to both owners
- Notifies the Resident Owner if their share nears the 20% threshold
- May require an independent valuation to protect the threshold
- Administers the default process and any forced sale as a last resort
Its duties & limits
- Must exercise reasonable care and skill adjusting the register
- May only apply funds as the agreement allows — no undisclosed benefit
- Must keep full records (ledgers, statements, invoices) for 7 years
- Acts neutrally — for both partners, not for either side
- Does not own the property or make decisions about it
- Charges a cost-recovery fee only — takes no profit
- Both partners depend on it being accurate and solvent (a key role to get right)
How it interacts with the others
- → Resident OwnerCollects the occupancy and administration fees by direct debit, issues statements, and notifies the Resident Owner of register changes and any threshold top-up required.
- → Passive OwnerPays the occupancy fee through to the Passive Owner (net of their half of the Administration Fee), and keeps the Passive Owner's recorded interest accurate quarter to quarter.
- → The valuer / indexSources the regional index each quarter and commissions or relies on independent valuations when the agreement calls for one.
In one line: A neutral, non-profit referee — it keeps the score (the register), moves the money
fairly, and applies the same objective rules to both partners so neither has to trust the other, only
the process.