Agent commission for introducing the buyer?

We have tenants who have expressed an interest in buying our property if it was to come up for sale. This has been communicated to us by the PM. If we sold the property to the tenants is the real estate agency entitled to commission? Are they deemed to have introduced the buyer to us?

It is a property we are willing to sell at the right price. Has anyone here sold to their tenant? How did it go?

 

Check your managing agency agreement

 

Perhaps there's an assumption that you would sell it through their agency? I don't know if they could impose this if you sold it to the tenants privately.

Anyhow, no need to sell if it's not your idea.

 

Many managing agents agreements contain a clause covering a tenant seeking to buy. Read your PM agreement carefully. They may even impose a default rate far higher than standard fees.

I wonder who initiated that discussion ?

 

Check your PM agreement. Many include rights to sale commission should a sale eventuate to a tenant or someone introduced as a result of a tenancy.

It’s not necessarily a turn off. Just don’t assume the sale will be commission free, allow for it when considering any offer.
Marg

 

On the front page of the 3mth inspection report was this note:

No maintenance was reported, but XXXX mentioned that if you think of selling the property she would love to be the first to know. The one next door has just sold, but she said this house suits her family much better. Either way hopefully they will be long-term tenants.

 

Will need to read my agreement.

 

Just remember if you don’t use the agent then you will have to handle all negotiations yourself, including drawing up the contract etc., arrange for holding of deposit etc.
Marg

 

One of the world's fastest sales has got to be worth something. I would think you would owe a commission but I'm not sure. It's still going to be cheaper and easier than most sales.

 

None of that is hard or expensive. What I would want to do is be able to negotiate commission. If the house is going to be sold into a market of one (the tenant) you would want to know the right price.

 

Solicitors draw up contracts. Solicitors can hold deposits as well.

 

In Vic it used to be a part of the standard agents agreement where there was a box which automatically allowed agents to get a commission if the tenant purchased the property. You have to be careful when signing up and make sure this clause is not agreed upon without proper consideration.

 

Past experience from what I have seen-

If you cannot agree on a price this will usually leave the tenant who is living in your house disgruntled.

Generally a tenant living in a house will know it’s every fault,I have seen it in the past that they have a hard time comprehending how much the vendor wants or the sale process gets dragged out as they are usually not prepared to buy when the opportunity arises.

It would be worthwhile getting a couple of other appraisals, making sure you don’t under sell it either.

 

I would wait to their tenancy is up and list it with someone else. As long as your property appeals to the mainstream and is worth over 500K it's not worth saving the 15-20K (advertising and commission which you may need to pay anyway due to your leasing agreement).

A good campaign leading to more potential buyers generally will net you a better net result and too many things can go wrong when just negotiating with one buyer/current tenant

 

This avenue may be best. Apparently, the tenants are not the tidiest people. Probably best to give them notice to vacate when we are ready to sell. We can then clean and appropriately stage the place.

If I introduce a seller to an agency I don't get 2.2% commission for the introduction. I don't think it fair that in a different agreement they can claim fees. I will be checking all future rental agreements and crossing this out. I haven't pulled out the agreement for this one yet.