Landlords Alliance – Emergency Euro Elections Statement21:09 PM, 21st May 2019
About 6 days ago 77
I have let my property for the past three years to the same tenants. My situation has now changed and I have decided to sell the property, giving my tenants notice to vacate explaining that I am selling the property.
My tenants have now shown an interest in purchasing the property, and I have also had an offer from a completely independent party before the property has even gone on the market with any agent.
The offer from the tenants is slightly higher, but having looked at my letting agreement with my letting agent it mentions that I would have to pay 2% plus VAT to the agent if the tenants decided to purchase even though the discussion has been between me and the tenant without the agents involvement at all.
This then makes the tenants offer less and not viable. I would prefer to sell to my tenants as I know they love the house and do not wish to move but unfortunately I do need to think of the finances.
The wording in the agreement is:
“In the event that a tenant or any person granted the benefit of the tenancy i.e an occupant introduced to you by the agent which he/she has been renting or had been renting for the previous six months, where the agent has been involved in the negotiations for the sale of the property we will charge a commission of 2% of the negotiated purchase price. The fee is payable on completion or on exchange of contracts if completion is more than six months after. all fees are subject to VAT at the prevailing rate”
My question is, Legally do these charges have to paid, as I think it is very unfair that the agent would receive thousands of pounds for doing nothing, when they have had a monthly fee for basically doing nothing except collecting the rent of the tenant for 3 years.
Thanks in advance for your help!
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