Buying House I'm Renting

RHemmings

InMyDreams said:

RHemmings said:

If you approach the LL before they sign up with the agent, could that mean that they avoid paying fees to the agent? 

We would like to buy the house we are renting too (but our LL is not interested in selling, unfortunately).

Before we approached him, we found online the standard contract his letting agent uses which unfortunately included a clause about exactly this. If he was to sell to us, the letting agent would get a percentage anyway. So I assume this is standard as it must happen often enough for the letting agents to all have this covered in their T&C. Easy money!

There's no such clause in my previous rental agreement. 

InMyDreams

RHemmings said:

InMyDreams said:

RHemmings said:

If you approach the LL before they sign up with the agent, could that mean that they avoid paying fees to the agent? 

We would like to buy the house we are renting too (but our LL is not interested in selling, unfortunately).

Before we approached him, we found online the standard contract his letting agent uses which unfortunately included a clause about exactly this. If he was to sell to us, the letting agent would get a percentage anyway. So I assume this is standard as it must happen often enough for the letting agents to all have this covered in their T&C. Easy money!

There's no such clause in my previous rental agreement. 

Not in our rental agreement. It’s in the contract the LL has with the letting agent.

ThisIsWeird

And Enigmo's contact was via the agent, who is likely also an EA. However, the %-age for a sale to a tenant, before a full listing, should surely not be as high?
As njk says, this should also be ideal for your LL in other ways; rent paid up with no break, and no hassle of arranging viewings. Both of these are biggies.
Good luck. I hope your LL is a decent person.

RHemmings

One advantage of such a clause being present in the landlord's contract - should it be there - is that the EA should be eager to tell the LL if the tenant is interested in buying the property. 

macman

I don't see how such a term is enforceable, since the tenancy must end prior to the purchase by the (ex) tenant exchanging?

RHemmings

macman said:

I don't see how such a term is enforceable, since the tenancy must end prior to the purchase by the (ex) tenant exchanging?

At a wild guess, there will be a term that the tenant has been effectively introduced to the property by living in it. And, I think the Property Ombudsman considers that these effective introductions last for six months past the end of a contract. 

Albermarle

If the LL has a few properties with that agent, then probably a EA type % charge on selling the property could be negotiated away.  

user1977

macman said:

I don't see how such a term is enforceable, since the tenancy must end prior to the purchase by the (ex) tenant exchanging?

The tenancy is going to continue until completion of the purchase, surely? Though we have had some daft threads in the past where people thought "vacant possession" means they had to move out and then straight back in again...

In any event, I don't see the relevance of that to the enforceability of the commission clause.

Hoenir

enigmo said:

Are there any risks to asking the agent roughly what amount the LL might be wanting for the place,

None at all. The EA will at some point discuss with the LL the value in terms of marketing the property more widely. 

Where the LL gains is having no void period , i.e. no rental income and having bills to pay. Between the time you would move out and the property sale being completed.