Selling IP to tenant - anyone done this?

Hello,

Just wondering if anyone has done this and how they approached the tenant to see if they were interested? I don't think I want to go through the PM as they'll probably want to take a cut.

I know that in NSW, you need to have a contract drawn up before listing a property for sale but not sure if that'd apply in this situation as it's not being formally listed/advertised for sale.

Thanks :)
 
There is no harm in negotiating for the sale prior to the contract being prepared however you should have some/all of the documentation ready in any case eg: sewer diagram, title search & possibly s149 certificate.

The Property Stock & Business Agents Act only provides that a real estate agent must have a fully prepared contract prior to listing for sale, this does not apply to private sales (AFAIK).

Check your managing agency agreement as there may be a clause giving the agent their cut for having introduced you to the buyer (the tenant). You may want to check the agreement to see how long this continues after you terminate the agreement.
 
Check your PM agreement.

Some sneakily include a clause that if you ever sell to a tenant they get the commission even if it is a private sale.
Marg
 
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