Selling tenanted property as vacant possession during fixed tenancy!

Discussion in 'The Buying & Selling Process' started by Navjit, 10th Jun, 2020.

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  1. Navjit

    Navjit Member

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    Hey All,

    I am selling my IP which is in a fixed tenancy until Jan 2021. I have a contract offer on the table from a buyer who wants vacant possession.

    The tenants have previously verbally mentioned they are happy to vacate.

    The RE agent wants to see me tomorrow to sign the contract however I would prefer I have a written agreement with tenant stating their intention to mutually end the tenancy early first. This will save me any hassle especially if the tenant does not decide to cooperate and then could be very tricky.

    Any suggestions on the best way to handle this situation?

    Thanks in advance!
     
    Navjit, 10th Jun, 2020
    #1
  2. thatbum

    thatbum Well-Known Member

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    Not only should you get something like that in writing, you probably should have a clause that protects you in case the tenants don’t actually vacate.
     
    thatbum, 10th Jun, 2020
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  3. ashish1137

    ashish1137 Well-Known Member

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    I don't see why they would vacate early unless they are being compensated enough. :)

    Regards
     
    ashish1137, 10th Jun, 2020
    #3
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  4. Navjit

    Navjit Member

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    I understand I am causing them inconvenience in regards to timing however they also knew I was originally going to sell in Jan next year but I lost my job this year and will need funds now.

    In saying that I am open to compensating them to get the deal done if required, but they haven't asked yet.

     
    Navjit, 11th Jun, 2020
    #4
  5. Navjit

    Navjit Member

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    Appreciate the wise input - first time selling a tenanted property and it's so much more complicated than an empty house

     
    Navjit, 11th Jun, 2020
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  6. wylie

    wylie Moderator Staff Member

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    We had a similar situation with a lawyer tenant, and we knew he wanted to move to a different area anyway. But he held the cards.

    We offered that if he kept the house tidy and we got a sale, we would ask for a 30 day settlement, and his final four weeks would be rent free.

    We drew up a statement and both signed it. He was happy, we were happy. He moved before the lease was up and that was what he wanted anyway.

    Perhaps call the Residential Tenancy Association and see if your tenants could issue you with a notice to leave, as well as documenting and signing something saying they will leave with final four weeks being rent free (or whatever your offer is).

    That way, you have two documents with a vacate date on them. Both signed by everyone. One initiated by the tenants that you've agreed to.

    PS. I'm no lawyer and just thinking of things to help should they become difficult through the process.
     
    wylie, 11th Jun, 2020
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  7. Navjit

    Navjit Member

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    Hi Wylie,

    Thanks for the general advice. Tenant initiated document approach sounds really good to me, especially in this difficult market due to Covid-19 which makes breaking a fixed tenancy or evicting tenants much more difficult.

    Much appreciated.


     
    Navjit, 11th Jun, 2020
    #7
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