Tenant interested in buying

[Paul j F]

A tenant approached our PM and asked if we would consider selling. Coincidentally we are but were going to go with another REA. Our PM is affiliated with a national REA company but don't deal with sales.

If with a different REA, at auction the tenant buys the house would the original REA have any claim for commision given that they approached us with a prospective buyer.

Or if we just see what the tenant is prepared to offer now does that then entitle the REA to commision. It was the PM who approached us and are separate division from the REA.

 

[eKwatee]

My understanding is, as it stands you could approach the tenant to buy the property without paying any commission as you are under no agreement for the sale of your property.

even if you listed the property for Auction with a different REA and the tenant was to buy the property, still no commission is payable as there is no current agreement for sale of your property with the current PM.

Unless you agree to a sales agency agreement you would not have to pay an agents commission, just approach the tenant yourself with their offer or have an agent approach them on your behalf with an agreed commission fee in place knowing you have a potential buyer and just want them to negotiate the agreed price.

 

[Dazz]

would the original REA have any claim for commision given that they approached us with a prospective buyer.

That factor might add a tad of weight to their argument, but the biggest claim would derive from any fine print in your management agreement that you have with them.

If they belong to a large chain, I wouldn't be surprised at all to see a clause in there that states that you agree to them earning commission for a sale if they introduce a Buyer and it subsequently is sold whilst they are managing the property for you.

Whip out the ol' contract and have a squizz - what does it say ??

 

[Dazz]

My understanding is, as it stands you could approach the tenant to buy the property without paying any commission as you are under no agreement for the sale of your property.

....Paul, whip out your existing management contract and check the fine print....you could very well be under an agreement and just no realise it yet....

Do you normally read the management agreement - every single word - their solicitor's who wrote it surely do.

 

[eKwatee]

....Paul, whip out your existing management contract and check the fine print....you could very well be under an agreement and just no realise it yet....

Do you normally read the management agreement - every single word - their solicitor's who wrote it surely do.

I would be interested to know if the OP was under a sales agreement hidden within the fine print, what percentage of commission of the sale price or fixed commission would be payable and what time frame from the original PM agreement that any sales agreement would be payable, Vic maybe different but in South Australia, a sales agency agreement cannot exceed 90 days, hidden or not.

 

[Dazz]

Contracts aren't like that, there is no such thing as "hidden" or not.

It's either in the agreement or it's not.

It's impossible to 'hide' words in a contract. It's either been written down by the solicitor who wrote it or not. The challenge and onus is upon the reader to actually care enough to read what is written down, and strike out anything that is obnoxious or not acceptable.

'Most people' never do that, and simply wave the pen over the top.

Solicitors rely on that fact to get their way.....they rely very heavily on the slackness of 'most people' not to read, and not to question. Popping the wording in small 1 font half way down page 87 doesn't relieve the onus on the reader to actually read it.


I've struck out many of these sales "standard clauses" in PM agreements from large REA national firms that have been written by some Sydney solicitor. Most of the PMs say 'hey - you can't do that, it's standard'.....but it's too late, I've already scratched it out.


The "it's a standard clause" is one of the very best tricks I now use and am extremely wary when organisations - especially Banks - try that **** with me.

 

[Jake D]

Contracts aren't like that, there is no such thing as "hidden" or not.

It's either in the agreement or it's not.

It's impossible to 'hide' words in a contract. It's either been written down by the solicitor who wrote it or not. The challenge and onus is upon the reader to actually care enough to read what is written down, and strike out anything that is obnoxious or not acceptable.

'Most people' never do that, and simply wave the pen over the top.

Solicitors rely on that fact to get their way.....they rely very heavily on the slackness of 'most people' not to read, and not to question. Popping the wording in small 1 font half way down page 87 doesn't relieve the onus on the reader to actually read it.


I've struck out many of these sales "standard clauses" in PM agreements from large REA national firms that have been written by some Sydney solicitor. Most of the PMs say 'hey - you can't do that, it's standard'.....but it's too late, I've already scratched it out.


The "it's a standard clause" is one of the very best tricks I now use and am extremely wary when organisations - especially Banks - try that **** with me.

Excellent post. Saving it for when I'm allowed to give you Kudos again.

 

[BMan]

The "it's a standard clause" is one of the very best tricks I now use and am extremely wary when organisations - especially Banks - try that **** with me.

i guess it is standard if you use it all the time... doesnt mean you should have to accept it