Hi, new to the forum and I've searched for an answer, but cannot find anything and I'm keen to get a bit of advice as I prepare my house for sale. I live in QLD, but we are looking at selling our IP in Sydney. Its currently tenanted on a 2 year fixed lease (exp Aug 2021) and we have flagged it by the tenants a few months ago if they'd be interested to which they replied 'possibly'. Firstly, if the tenants buy, without listing it for sale on the public market, am I committed to paying the real estate a commission? From the point of view that they introduced the tenant to me? Secondly, while understanding the difference between Exclusive / Sole agency agreements, but given that if the tenant does buy, it could be defined that they were introduced by the agent, if I do list it (Sole agreement) and the tenants then do decide to buy direct, what options do I have to save paying any commission? TIA
Be aware that in NSW if you notify a tenant of your intent to list a property for sale they can vacate in as little as two weeks, regardless of what the lease says.
I suspect it's probably unlikely that the tenancy management agreement contains a clause in it that gives them a right to a commission if the property is sold, but it is worth checking out. That said, in NSW an agent isn't actually allowed to claim a commission without written agency agreement - Section 55 Property and Stock Agent Act. If they tried to do so I think you could argue the point in respect of commission .
Wow, i didn't realise this. I have just seen on the Tenants' Union website Factsheet 09: You want to leave It states: Terminating due to extraordinary grounds during a fixed term In some situations, you can break your fixed term agreement without compensation to the landlord by giving a minimum 14-day termination notice. These situations include being offered a place in social housing or aged-care; if the landlord wants to sell the premises and did not tell you this before you started the tenancy, or if the premises are listed on the loose-filled asbestos register. This could be argued, but given that I have asked them if they want to buy, can this be argued that it's not 'extraordinary grounds'?
No, to be clear, the contact with the tenant came after the lease began. I'll wait for the agent's advice on how to best proceed. If you were the tenant (and it is a positive relationship, although very little interaction), would you prefer to have the notice provided by the agent or the owner?
