Letting agency’s entitlement to share of sale?

Letting agency’s entitlement to share of sale?

9:43 AM, 2nd May 2024, About 2 weeks ago 5

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Hi, my house has been let for several years to a tenant who has expressed an interest in buying it. I do not want to sell it at this moment in time and have advised them of this.

I am now changing letting agencies. The contract with the first states that they are entitled to a percentage of the sale price if the property is sold to someone who they introduced to me ie the tenant.

Is this agreement in perpetuity or will it end when I leave them? There is no timescale in the clause and I may well want to sell it in a few years in the future.

Any advice would be greatly appreciated.

Thanks,

Cathryn


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Comments

David Smith

10:00 AM, 2nd May 2024, About 2 weeks ago

My understanding is that the clause is not enforceable unless the agent completes the sale.
The OFT made a ruling on this some time ago. Take a look at their website.

GlanACC

10:25 AM, 2nd May 2024, About 2 weeks ago

I had the same issue, I ended the let with the letting agent, gave the tenant a rental agreement with a break clause in it and put the property up for sale with a 'friendly estate agent' on the understanding they would charge me 0.5% commission (£400 at the time) - this was some time ago as estate agents were then taking actual photographs of properties and sticking them to sales sheets. and I would find them a buyer (the tenant) who was then introduced to me by the 'friendly estate agent'. saved me a lot as the letting agent wanted 3% commission.

Adrian Jones

12:16 PM, 2nd May 2024, About 2 weeks ago

Why are you changing letting agencies?

Cathryn Smythson

15:23 PM, 5th May 2024, About 2 weeks ago

Reply to the comment left by David Smith at 02/05/2024 - 10:00
V helpful. Thanks

Cathryn Smythson

15:23 PM, 5th May 2024, About 2 weeks ago

Reply to the comment left by Adrian Jones at 02/05/2024 - 12:16
Over a year of trying and failing to get very basic maintenance done.

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