Selling a house to a tenant

Flyman

Hi Everyone,

I'm new here and confess to not being very financially astute - However I do know I like to save a bit of money where I can!

I'm in the situation where we put our house on the market in Nov '10 with an agent. We signed paperwork which agreed to them being sole agent for a minimum of 12 weeks.
Well 12 weeks are now up and our tenants have made us an offer directly and not through the agents.

So the question is, can I terminate with our agents and proceed to sell to our tenants in say 2-3 months time with any financial penalty?

I've read the T&C's and cant see anthing to say otherwise?!

sharpee

Is there anything in your Contract regarding your rental about if the tenants were to go on and purchase the property?

I only ask but the contract I have with my Management Company states "should the tenants go on to purchase the property we will charge xx% commission"

Flyman

Hi Sharpee,

The agents who are selling the house also set up the tenancy for a 2 year period which expired last week.
We collect any revenue and agreed with the tenants to rent it on a rolling month by month basis with each party giving 2 months notice.

Angela_D_3

I'd get your solicitor to check both contracts as there maybe a clause about them introducing the buyer at any stage.
HOwever if everyone keeps their mouths shut how would they know anyway.

Flyman

Hi Angela D,

That does seem like the most logical approach - Guess I might have to put the question to our solictor and see what he says and swallow the expence!
Really dont want to get caught out and owe an agent money.

Angela_D_3

Flyman wrote: »

Hi Angela D,

That does seem like the most logical approach - Guess I might have to put the question to our solictor and see what he says and swallow the expence!
Really dont want to get caught out and owe an agent money.

If you are going to use them for conveyancing they might do it for nothing, fingers crossed for you.

cjmumto2

Normally if the tenant wants to buy the house you still have to pay the agent, so do get it looked at by a solicitor or you may lose more money than its worth.

Eton_Rifle

I'd also be surprised if the letting agent missed that trick.
Did you check the tenancy agreement as well?

G_M

Flyman wrote: »

Hi Sharpee,

The agents who are selling the house also set up the tenancy for a 2 year period which expired last week.
We collect any revenue and agreed with the tenants to rent it on a rolling month by month basis with each party giving 2 months notice.

Err... no. YOU have to give them 2 months (+ a bit more perhaps..) and they have to give you ONE months notice.

Just so you know!

Check the contract you signed with the letting agent who introduced the tenants.

As for the selling agent, give them the notice required by their contract (2 weeks?). Provided they did not introduce the buyer (which they clearly did not) then no fee will be payable to them.

Flyman

Eton_Rifle wrote: »

I'd also be surprised if the letting agent missed that trick.
Did you check the tenancy agreement as well?

Given that the tenancy agreement expired on March 12th and providing the 12 week period is up on the sale & marketing conditions then surely there shouldn't be any issue?...hopefully!

Flyman

G_M wrote: »

Err... no. YOU have to give them 2 months (+ a bit more perhaps..) and they have to give you ONE months notice.

We did know but as we're on very good terms with out tenants its just a mutual agreement for the time being but if it went legal then yes as you say the one month is applicable.