Legal issues on tenant agreement

[evisional]

I am leasing an IP via an RE agent. Last Saturday, I accepted a tenancy application verbally through the agent. Agent contacted tenants to organise the tenancy agreement to be signed. However, tenants appeared to pull out as they did not answer agent phone or return any sms messages in the 3 days. Then, agent managed to scheduled an appointment with prospent tenant on last Wednesday to sign the lease. However, tenants was not presented on last Wednesday. After that, agent informed me that another appointment is set on this Saturday for contract signing. There were clear signals that tenants wanted to pull out. In the meantime, I also found a new tenant who lodged application by myself through private inspection. I am very happy with this tenant.

This Saturday afternoon, I was informed by the agent that the former tenants have signed the contract on last Thursday and the contract will be forwarded to me on Tuesday for signing (after long weekend in Victoria). Today is Saturday.

I prefer the new tenant and want to rent out my IP to them as they appeared to be clean and better class people. Though I have approved the first application, I have not signed lease contract. Can I rent out the IP to other tenants?

Who should I rent out to>

Thanks

 

[NedKelly]

You either appoint an agent to do the work or do it yourself. You can't have it both ways.

If I was your agent and obtained a tenant which you had approved only for you to change your mind I would be looking for you to pay all the advertising and signup commission and management fees for the period of the tenancy signed.

 

[Perp]

Though I have approved the first application, I have not signed lease contract. Can I rent out the IP to other tenants?

No. You already have tenants, found by your agent.

 

[Scott No Mates]

Sounds like you have appointed an agent, they've done their job and accepted the selected tenant (upon your instructions). Why does the agent need you to sign, they are your agent with the authority given by you to source, recommend tenants and execute documents.

You've then sourced another tenant and will have to give the ones that you found the good news.

 

[Terry_w]

Yes sounds like you have entered a contract already.

 

[DaveM]

Did the first set of tenants pay any form of holding deposit? That will be important in determining if there was any exclusivity in the lease signing process.

 

[Perp]

Did the first set of tenants pay any form of holding deposit? That will be important in determining if there was any exclusivity in the lease signing process.

The holding deposit is only to hold the property until they sign the lease, in any case. They signed the lease on Thursday. I don't think a holding deposit, or lack thereof, is therefore relevant any more.

Even if they hadn't paid a holding deposit, if the agent hadn't asked for one, the lack of one doesn't give you the right to withdraw an already-granted approval.