Verbal Agreement

The Mummy

The Mummy

Hi Guys,

One of my ex PM'S made a verbal agreement with one of our tenant's, she is no longer around. Nevertheless now the tenant is down my neck saying he is going to take me to court", his reply I made a verbal agreement with her and Im taking you to court and slammed the phone down in my ear. He has never signed a Contract.

Not sure on how long a verbal agreement lasts for!

I look forward to some advice on this one that's for sure!

The Mummy
 
It sounds like something you need to take up with the ex PM. He (or she) will know the conditions.

Regardless, if you want any advice on this, you will need to provide more detail.

My opinion is that the tenant's "advice" carries no weight. But that is opinion only.

I would also be trying to check with whoever is the current PM (the same REA perhaps?). You hire PMs to keep you a step away from the tenants. Make them do their job.
 
well - i would say a verbal agreement between your tenant and your ex-pm, and nothing is signed, is not an agreement with you.

what was the supposed agreement over? in this day and age unfortunately, and sometimes fortunately, a verbal agreement isn't worth the paper it's written on ... ie, is worthless.

i wouldn't worry to much - but - if the tenant is going to be a problem (and it sounds like they are - abusing you etc), and they are off lease, then get your new pm to serve them notice.
 
lizzie said:
i wouldn't worry to much - but - if the tenant is going to be a problem (and it sounds like they are - abusing you etc), and they are off lease, then get your new pm to serve them notice.
Click to expand...

Good idea. I wouldn't stress too much.:D
 
How are they gonna take you to court? Ring a lawyer and say that an ex pm promised them something and they didn't get it in writing? Doubt anyone will listen to them.

Just serve them notice and do it all properly.
 
Thanks everyone,

I can now at least move forward and get this situation sorted, I just get a bit concerned when the tenant's seem to have all the blinkin rights in the world!! It just makes it very difficult when there is previous people involved and who is right and who is wrong and you get left holding the bag.. They test you to the Max! Don't really want to be dragged down to the Tribunal!

Thanks again

The Mummy
 
hi all
in the world of your word is your bond that is still very true in business as we all live by that rule and try if possible to stay to it.
you don't have to live by the bond of someone else,
so I would say its very simple if the pm said something talk to the pm and don't bother me.
it saves you alot of money if you understand law.
and the simple rule is if it got nothing to do with you,( and from the face of it unless you have spoken to the tennant before and made any undertaking) I would say see you later.
also kick them out before telling them or they may trash the place and thats a very different question.
there are two ways of going to court.
you taking some one( costs you money)
and them taking you to court( cost them money)
and unfortunately we don't have a legal or for that matter moral court system
we have a system that the last person standing wins
my advice is to talk to a barrister and engage him/ her for your behalf and tell them that you want to represent yourseft at the first court case and then if it moves forward the will attend.
why
simple
a barrister costs 3k pr hr
the first court case takes upwards of 4 hrs after the drunk and the crime is put thru and then you turn up if they turn up as well with a barrister( you can't in nsw have a solicitor up against a barrister) and you as defendant ask for a stay as you need a barrister.
they will say that you had a barrister hence they have a barrister.but you cancelled yesterday and know you need legal council.
and you as defendant can't befend against a barrister.
and you just cost them about 8k min and they can't claim that if they win
now that hurts
I have been to a few that will say no I am here ready to proceed but you need to stay fast with sorry I am not any form of legal understanding and he is a barrister.
I can tell you that the look on a couple of barristers faces is better then any deal.
and the chances of winning
goes from 1 to 11 to 9 to 11 very quickly.
and to talk to a barrister cost you nothing.
oh and don't tell them above as it will give them the s--ts and they won't take the case
add a few ... or ,, and a couple of


in the post as its 1 pm in sydney
 
Engage your new pm, get them to approach the tenant with a lease agreement. If they refuse to sign the agreement, then get the pm to start eviction proceedings. If they refuse to leave, then get the pm to start court proceedings. It really isn't that expensive and you do not require a barrister.

Is the tenant in breach of rent? Are they damaging the house? Those are good grounds for eviction which the court mediator will recognise.

You not liking the tenant and just wanting them out is not. There must be a valid reason like you wish to renovate, or move in. After court sits, you don't actually have to move in, its just a good reason to want the tenant out. ;)
 
The Mummy said:
Hi Guys,

One of my ex PM'S made a verbal agreement with one of our tenant's,
The Mummy
Click to expand...
Mummy,it depends on who they have the verbal agreement with,and what back-up they have in place i would just play the game backwards on them next time they ring,just say your very busy and will ring back in the afternoon,make them wait in line with everyone else,then ring back after 5 hours,and tell them you will see them in court,that's stops 75% dead in their tracks,if they want more just give the name of your legal person and let them deal with the problem..
BTW what was the agreement that's in place?, free water,free rent,free lawnmowing,free housemaid,free fridge-washing machine,my brother is a Barrisiter and he tells me QLD :rolleyes:is as bad as New York for people trying to sue for anything,rather then wait to win the Lotto and walk down easy street..willair..
 
Bazza said:
A verbal agreement is't worth the paper it's written on.

Cheers,

Bazza
Click to expand...

I agree with Bazza, a verbal agreement is not binding particularly if you were not party to the deal. This is just posturing.....color and movement by your tenant.

I would get your new PM to handle it. Then based on the issue and whatever your decision a written notice is sent to the tenant of your decision via the PM. In most instances without hard evidence it is impossible to prove a case and the case will be dismissed as vexacious.

Whatever you do...do not retaliate against the tenant. Keep all communication civil and professional via your PM. If you really want them out you could raise the rents by 10% and then again by 10% again.....a very clear message. Make sure you have insure so any damages are covered. I think you will find very tenants want to be listed on TICA (bad tenant DB) and be shut of the already tight rental market. Always remember it is just an investment.....you are in the business of property investment....you are in control so leave emotions out of it. ;)
 
HI there
verbal agreements will tend to be enforceable only if they have been later reduced to writing or both parties have acted to their detriment, relying on that verbal agreement.
Its hard to comment when we don't know what the verbal agreement was about, but the fact that the tenant has not signed something ... suggests they would have difficulty providing evidence which will back up their point.
If in doubt - as has been suggested above - get your new PM to sort it out or move the tenant on
thanks
 
I inherited a tenant who had a verbal agreement that their rent would never increase above $115 per week for a 3 bedroom inner city pad. Just because they were nice :)

My current PM and I said "How lovely. We know nothing about such an agreement. Your rent will increase to XX at the end of lease." He grumbled but paid.

He did take care of the place well and always paid on time but without a market rent that did not make him a good tenant in my eyes. The rent on that apartment is now $310 per week so I would be now down around $10K per year if I had honoured his "verbal agreement"

I don't see how you could be held to an undocumented agreement that you know nothing about and were not party to. It would also seem unusual that PM should have an undocumented agreement.
 
The agent represented you. The agent is your mouth piece.
It is irrelevant that they are no longer your agent.

What everybody seems to have overlooked is , from your limited description ,the agent has exceeded his authority, since you did not authorise any agreement.

The agreement would be void....................no legal effect

In terms of reality and the law, what's written down will be what's really important. Otherwise it will be the tenants word against your own.
 
In Queensland, tenancy agreements must be in writing (except for mobile homes/caravans). A verbal agreement is not binding, so you have no obligations toward this tenant, for example no notice periods are needed. That being said, handle the situation carefully to avoid any damage to your property.

Cheers - Dave
 
How do you know the tenant is not lying about the verbal agreement?
As the others said, if it's not in writing, don't worry about it.
 
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