LA position -tenant buying rented property

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    LA position -tenant buying rented property

    Im signing a contract with a LA who is also an EA . May I ask a couple of questions please. I think I might be taking up tenant find only (may change later)

    1) The contract says if the' tenant found', backs out after LA work is done, but before signing their contract , Im responsible for all the costs incurred. Normal or not please? Im thinking yes as they make it clear the final decision to go with a particular tenant is still mine after they have picked one -so my poor judgement or bad luck.

    2) Sale of my rented property to tenant , further down the line.

    " You will be liable to pay us a fee equal to the sole agency fee charged by ..(.their company)... , in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the property are exchanged with a purchaser introduced by us during the period of our sole agency or with whom we had negotiations about the property during that period or with a purchaser introduced by another agent during that period"

    1) What does an unconditional contract mean in that context?

    2) So for tenant find only - does this mean it still applies if tenant wants to buy , years later? Im presuming that I have a sole contract with the LA whilst hes marketing to find me a tenant , so the answer probably yes this is normal?

    3) Agent is recommending just 6 mth tenancy to start with . Is this a good idea , or is he thinking of a second tenant find fee 6 mths earlier than necessary?

    4)The property is in my name. However, would there be any benefit to having my husband down as joint LL --maybe for when Im ill or any other reason I may not have thought of?

    Be grateful for clarification on these 4 points . Thanks.

    #2
    Originally posted by Bramleyapple View Post
    Im signing a contract with a LA who is also an EA . May I ask a couple of questions please. I think I might be taking up tenant find only (may change later)

    1) The contract says if the' tenant found', backs out after LA work is done, but before signing their contract , Im responsible for all the costs incurred. Normal or not please? Im thinking yes as they make it clear the final decision to go with a particular tenant is still mine after they have picked one -so my poor judgement or bad luck.

    I disagree. If you are employing them to find you a tenant and the tenant they find backs out, even after all the work is done, then, patently, they have not found you a tenant, make it clear that you will only pay their fees for a successful contract.

    2) Sale of my rented property to tenant , further down the line.

    " You will be liable to pay us a fee equal to the sole agency fee charged by ..(.their company)... , in addition to any other costs or charges agreed, if at any time unconditional contracts for the sale of the property are exchanged with a purchaser introduced by us during the period of our sole agency or with whom we had negotiations about the property during that period or with a purchaser introduced by another agent during that period"

    Most of them try this one. I understand that when you appoint an agent as a LETTING agent that is all you want from them, they do not become your sales agent, that would require a separate contract. Strike that clause from the contract.

    They are paid for their work as letting agents, to slip in a clause requiring you to pay thousands on the off chance your tenant wants to buy is dishonest and under the Estate Agencies a
    ct 1979 may even be illegal.

    1) What does an unconditional contract mean in that context?

    You employ them. You lay down the conditions.

    2) So for tenant find only - does this mean it still applies if tenant wants to buy , years later? Im presuming that I have a sole contract with the LA whilst hes marketing to find me a tenant , so the answer probably yes this is normal?

    This is the reason you have to make sure that you do not sign anything that makes them think they can do that.

    3) Agent is recommending just 6 mth tenancy to start with . Is this a good idea , or is he thinking of a second tenant find fee 6 mths earlier than necessary?

    Good question, we normally say a 6 month 'starter' tenancy is best because that's the minimum term before a S21 can be used to evict a bad tenant, your agent may want to take a full year's commission for this 'service'. Again you need to be pro-active and insist that you will only pay commission based on the actual term signed up for by your tenant. You will soon be able to judge the agent's real intentions from his reactions.

    4)The property is in my name. However, would there be any benefit to having my husband down as joint LL --maybe for when Im ill or any other reason I may not have thought of?

    Be grateful for clarification on these 4 points . Thanks.
    The question about your husband as joint landlord should not be a problem for you, you could easily make your husband your own agent as well.

    If you look at Estate Agencies as two separate entities, lettings and sales, it may help you understand their reasoning. You need to be clear with them how many of their 'services' you want to use, it's either going to be just the letting service, or just the sales service, or maybe both. You're the customer, you're right. If they don't like your terms find someone else.

    May I also say your original post is a good example of clarity for the questions you posed.
    I offer no guarantee that anything I say is correct. wysiwyg

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      #3
      Thanks jta re your reply

      Thanks for your reply jta on my post regarding selling property to a tenant. Very helpful indeed. I have tried twice to thank you as a 'reply' but without success, so had to resort to making it a new post. Sorry admin, but my replies seemed to go through but didnt appear on the site.

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