Letting agency’s entitlement to share of sale?
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
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Member Since September 2023 - Comments: 28
10:00 AM, 2nd May 2024, About 2 years 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.
Member Since March 2023 - Comments: 1506
10:25 AM, 2nd May 2024, About 2 years 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.
Member Since July 2013 - Comments: 305
12:16 PM, 2nd May 2024, About 2 years ago
Why are you changing letting agencies?
Member Since May 2024 - Comments: 3
3:23 PM, 5th May 2024, About 2 years ago
Reply to the comment left by David Smith at 02/05/2024 – 10:00
V helpful. Thanks
Member Since May 2024 - Comments: 3
3:23 PM, 5th May 2024, About 2 years 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.