AboutAl Romero, Ltrs. Expertise I can answer questions relating to general Real Estate in Pennsylvania including questions relating to Real Estate Investments and Landlord issues. I cannot delve out of my expertise ie;as in the practice of Law.
www.yorkhomeguide.com
Experience 5 years as an Investment property Advisor with a local Investment firm and 3 years of general practice.
Organizations National Realtors Association
R.A.Y.A.C
Pennsylvania Realtors Association
H.A.R
Publications york listings
Central Pa Real Estate Investors guide
Education/Credentials Center of Real Estate Law and Sales Practice.
Ltrs certified.
housevalues agent certification.
Expert: Al Romero, Ltrs. Date: 1/9/2008 Subject: Renting home still under listing contract.
Question Hi, Our home has been on the market for 3 months with no offers, we have had 2 price reductions of 4% each and the showings have dropped off completely. It is empty and costing us $3K/month in expenses. We have found a tenant who is willing to sign a 30 month lease and pay a rent that will cover 75% of the expenses. We signed a 6 month listing contract with the broker and have 3 months left.
If we enter into a lease with a tenant that we found, what is our obligation to the broker? The only reference to leases in the listing contract is the following: "Seller will not enter into or renew any leases during the term of this Contract without first giving notice to Broker."
The agent has said that management does not always release listings. We are not asking to be released from the terms of the contract. Can the broker prevent us from renting out our house?
I would appreciate any insight that you may have.
Answer They cannot prevent you from renting the property out with notice given but are not also required to release the agreement per se,and property can be shown with a tennant still ,but remember that the new potential buyer will be assuming the new lease under its current terms and that may be a non-selling point to a buyer that plans on occupying the property. So I would make a decision rent it and not sell it until you are ready or the market turns in your favor or leave it vacant and have a price reduction strategy with your broker until it sells.
