We want to sell our IP and intend to give the current tenants first option to buy. If the tenants did want to buy it are we under any obligation to pay the property managers any sales commission? They won't have anything to do with the actual sale but could argue they were the ones who found the tenants initially.
Property managers entitled to sales commission?
- Thread starter Tiggy
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But even if that was true - you could just give your PM notice of cancellation of the contract, wait the 30-60 days - then do the deal?
Funnily enough, they've thought of that.
If they've thought enough about it to want to get a sales commission if you sell to your tenant, they've also thought about it enough to word it so that they're entitled to the commission even if they're no longer the PM - and in fact, even if the tenant has moved out of the property. The thing which they want the commission for is for first introducing the tenant to your property (ie when they found them as tenants), which is somewhat irrelevant to whether they're acting as PM at the time of the sale.Tiggy: I notice that the standard PAMD20a (QLD property management agreement) doesn't seem to have a clause about commission if you sell to a tenant, but check whether the agent has inserted it as a special condition.
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I've done some more reading. Tiggy, don't involve the agents in the sale negotiations and you won't have to pay them anything. The introduction alone is not enough to earn a commission, and they didn't even introduce the tenants as a prospective buyer, but as a tenant. So I think no commission will be payable, provided you do keep the real estate agents uninvolved.
For some relevant principles, see this NSW case. Whilst this is not binding precedent on a QLD court, I believe the principles are the same.
For some relevant principles, see this NSW case. Whilst this is not binding precedent on a QLD court, I believe the principles are the same.
Thanks to everyone who responded to my question. I am waiting until tomorrow before contacting the tenants directly (didn't want to disturb their Easter). I suspect they won't be able to afford it, but thought it was a nice gesture, as they are good tenants. Will let you know how things work out.
Thanks also to Perp for doing some extra reading up on it - much appreciated. After seeing your cute little doggy avatar, I thought you might be interested in my celebrity canine's Facebook page (he's a published author you know!!!).
http://www.facebook.com/#!/pages/Gy...e-Philosophical-Pooch-Osborne/162936030398385
Cheers
Tiggy
Thanks also to Perp for doing some extra reading up on it - much appreciated. After seeing your cute little doggy avatar, I thought you might be interested in my celebrity canine's Facebook page (he's a published author you know!!!).
http://www.facebook.com/#!/pages/Gy...e-Philosophical-Pooch-Osborne/162936030398385
Cheers
Tiggy
Awesome! My dog's cute but stupid. And he doesn't have opposable thumbs. But we love him anyway.
Awesome! My dog's cute but stupid. And he doesn't have opposable thumbs. But we love him anyway.
I must admit I prefer dogs which have opposable thumbs and can grasp objects and pass them to me but each to their own, it would be a boring world if we all liked the same type of dogs
