Home Buying in 15108>Question Details

Olivia A., Home Buyer in Pennsylvania

Real Estate Agent / Landlord

Asked by Olivia A., Pennsylvania Tue Jan 19, 2010

I have been made aware that if I sign with my current Property Manager and Lease Holder as my Real Estate Agent I would be able to break my lease without penalty if I buy a home through them. Is this kind of arrangement ok? Their Company is both in property management and real estate.

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* Benny Smith ABR, GRI, SRES’s answer
Olivia

There should be nothing wrong with this arrangement. Ask to see the process in writting. If if is thier policy then it will be written. Not all tenents can get this break. Best of luck in your home search.
0 votes Thank Flag Link Wed Aug 4, 2010
BEST ANSWER
As Erica says, read the agreement carefully and, as appropriate, consult a lawyer. A couple of random thoughts:

It's important to read it carefully. I was selling an entry-level property recently, and some renters wanted to buy it. They were aware (they thought) that there was a 2-month penalty for breaking their lease early. They made an offer on the property I was selling. Then, when they went to tell the rental management about breaking their lease, they found out that they'd misread the lease--it really amounted to a 4-month penalty. So, be very careful.

Second, having issued that caution, there's nothing wrong with the arrangement you describe. The problem, though, is that you don't get to choose your own agent, and you may not be satisfied with the service provided by the management company or its agents. So, I'd discuss it with them and interview them (or some of their agents) just as you'd do normally. If you feel comfortable with the level of service you'd receive (and the contract provisions themselves are OK), then it shouldn't be a problem.

So, be cautious. But it's an acceptable arrangement in concept.
0 votes Thank Flag Link Tue Jan 19, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You do want to be careful in these type of arrangements. It really depends on the property. If it is owner managed - that is one thing but owners of propertes will transfer their properties to new managers if they are not happy with the service. If one agent tells you one thing and then it is taken over by another, you need to make sure your agreement is protected. Get everything signed by the owner of the property - not the manager.
Web Reference: http://www.iclickhomes.com
0 votes Thank Flag Link Mon Aug 2, 2010
Hi Olivia,

Then ask for specific language to be placed into the contract that specifically spells out this understanding as part of the Agreement.

And by all means run it by an attorney also.
0 votes Thank Flag Link Tue Jan 19, 2010
I would seek legal advice. BREAKING any contract is still breaking a contract. I would get that in writing from the agent.
0 votes Thank Flag Link Tue Jan 19, 2010
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