Sale of unit to tenant

[superb]

Selling my unit in Dulwich Hill and I have not listed it with any agent yet. Thought of approaching my tenant and asking if they are interested in buying it. It would be nice if they could buy the home they are living in. If they are interested and agree to our price, can our managing agent claim they introduced the property to the tenant and claim a commission even though we have no agreement with them to sell the property?

Paula

 

[Kevmeister]

I think it's highly unlikely they could try that on, unless there is something specifically in your property management contract/agreement that stipulates such.

I will defer that question to Asy and others.

My point was going to be that if you *don't* sell it to the tenant you would probably engage an agent anyway, so even if you did have to pay commission, you wouldn't really be losing financially. (Except I'd be pissed knowing an agent has earned $X for *nothing*).

Unless you were planning on considering a reduced sale price on account of there not being any agents commission to recoup (but wouldn't the money be better in your pocket, not the buyer's?)

 

[asy]

Originally posted by superb
can our managing agent claim they introduced the property to the tenant and claim a commission even though we have no agreement with them to sell the property?

Short answer...

No!

you are safe to approach them with respect of the sale.

The ONLY time you are liable for a commission is when a purchaser was introduced to the property during the time of a valid sale appointment.

If you have not signed any authority to sell, then there is no commission payable.

hope this helps,

asy

 

[bbruham]

My thoughts are, that, the only other persons involved, besides you and the tenant, would be, each others solicitors.
When the deal has be completed, you then inform your PM to the fact of not requiring them in the future.

bbruham.

 

[Macca]

Superb,

I would have my solicitor check over my agreement with the managing agent. I have had occasions where if the tenant was to buy the prop during the period of the lease then the agent was entitled to a sale commission.

Better to be sure than sorry

 

[Aceyducey]

I have a friend who did exacty this from the other side.

He was the tenant and found out that the owner was thinking of selling. He researched the market, approached the owner with a price just below market rates for the property as is (required an update really, paint & carpet), and the owner agreed to the sale as he saved all the agency fees, etc.

Now my friend can pay less for the mortgage than he had to in rent....I just have to keep working on him to take some of the equity now in the property (he bought several years ago) and buy his first investment place

Cheers,

Aceyducey

 

[JustAMum]

Another thought - have you considered wrapping?

Depending on your situation, and the tenants situation, it may be worth looking into to see if there is another type of win-win situation you both may be interested in.

JAM

 

[XBenX]

Originally posted by Macca
Superb,

I would have my solicitor check over my agreement with the managing agent. I have had occasions where if the tenant was to buy the prop during the period of the lease then the agent was entitled to a sale commission.

Better to be sure than sorry

hrmm interesting - not part of my strategy but its nice to NOT have the clause in your PM agreement - incase you get a too good to be true offer from your tenant

added to the notebook