Help! Selling to tenant without involving managing agent? Yay or Nay?

Viewing 4 posts - 1 through 4 (of 4 total)

CharlotteLe
Participant
@charlottele
Join Date: 2015
Post Count: 3
March 26, 2018 - 3:46 pm
Hi Forum!
Needing some advice; I have a current tenant who has dropped some hints that they may be keen on purchasing.
Before I pursue this, I need to know if I’m within my rights to discuss/sell with the tenant directly, without going through the managing rental agent?
For reference Standard REIV 005A Managing contract stating; Managing fee; X % of rent, plus X % of compensation received from tenant
The last bit re ‘compensation’ is the part that I’m not sure on…?
Hoping someone can assist here!
Thanking you.
- This topic was modified 6 years, 9 months ago by CharlotteLe.
Ethan Timor
Participant
@ethantimor
Join Date: 2016
Post Count: 282
March 28, 2018 - 3:19 pm
Can’t see why would a property manager receive commission for a sale of the property to a tenant.
My guess is that compensation means if the tenant damages something and pay (compensates) you for it.
I could be wrong, though, as this isn’t my area of expertise.
If I were you, I would confirm this with fair trading. They’re always happy to help 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone Me
Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
CharlotteLe
Participant
@charlottele
Join Date: 2015
Post Count: 3
March 28, 2018 - 3:44 pm
Hi Ethan,
Thanks for your response,
Ethan Timor wrote:
My guess is that compensation means if the tenant damages something and pay (compensates) you for it.
I could be wrong, though, as this isn’t my area of expertise.
Yes, this is my understanding upon signing the contract too.
Just want to ensure that legally that they can’t say they are owed money according to this specific wording on my contract!
I’ve since called REIV, their response wasn’t totally reassuring; they just said that it’s not a ‘sales’ contract so it shouldn’t really matter…but wondering if I actually need advice form a solicitor or lawyer on this…
Ethan Timor
Participant
@ethantimor
Join Date: 2016
Post Count: 282
March 28, 2018 - 6:20 pm
Sure thing, happy to help 😊
CharlotteLe wrote:
wondering if I actually need advice form a solicitor or lawyer on this…
Yes, that would be prudent.
You’ll need a solicitor or conveyancer to represent you as the vendor anyway so might as well ‘kill 2 birds with 1 stone’ I reckon.
Usually I’m in favour of hiring a conveyancer for property transactions but in this case, if I were you I would definitely get a solicitor on board to make sure you’re good to go 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone Me
Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)