Has anyone sold a rental to a tenant without a real-estate agent?

General Landlording & Rental Properties
9yFollow

Has anyone sold a rental to a tenant without a real-estate agent?

Philip Mullinax
Columbia, SC · Member since 2014 · 100 posts · 12 votes

I have a rental in North Carolina that I am selling to my current tenant.  I am curious if anyone has ever done this without using a real-estate agent.  It seems easy enough, but definitely would love to hear from someone who has done this before?  Mainly questioning the closing process. 

0Reply
21 views

Most Popular Reply

Mike Flatow
Maitland, FL · Member since 2016 · 45 posts · 17 votes
9y

I entered a contract as renter several years ago but didn't go through with it when it was all said and done.  It was a simple contract that the seller downloaded and it was very basic.  There was no deposit required by me so I thought it was a good deal because I had nothing to lose.   Not sure if I would consider that again or not but as a seller it may give several advantages.  

2Reply
See this reply in the discussion

14 Replies

Jump to latestLatest
  • Eddie Memphis
    Investor · Englewood, CO · Member since 2015 · 158 posts · 140 votes
    9y

    I have not.

    My cousin handles my deals for an incredibly low flat rate.

    That way, he carries the liability for E&O.

    1Reply
  • Jason Boulay
    Real Estate Agent · Cranston, RI · Member since 2016 · 51 posts · 49 votes
    9y

    I have not.  I have come across a landlord and a tenant looking to complete the transaction.  In RI, attorneys conduct closings.  I referred them to a real estate attorney and were able to complete the transaction.  It would be similar to a 'for sale by owner' with no party being represented by a real estate agent and therefore no commission to pay.  Obviously, there would be cost involved with the attorney, title search, etc.

    I'm not sure of the real estate laws in the state that you are trying to complete this.

    1Reply
  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 994 posts · 783 votes
    9y

    You could contact a real estate attorney to handle the contracts, or call an escrow company. Make sure you disclose everything about the property, espeically anything that was repaired/ done prior to this tenancy.

    1Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y
    Originally posted by @Philip Mullinax:

    I have a rental in North Carolina that I am selling to my current tenant.  I am curious if anyone has ever done this without using a real-estate agent.  It seems easy enough, but definitely would love to hear from someone who has done this before?  Mainly questioning the closing process. 

    All FTHB need someone in their corner, holding their hand, that they trust to look out for their interests first and foremost, or they will lose their minds, which obviously impacts you as the seller.

    Bare minimum, make them get a lawyer. Or an agent. Agree to pay up to some set amount, out of your sale proceeds, to whoever they want looking out for them. I know that sounds weird, but it'll save you a lot of pain and hassle, and it's not crazy to have someone looking over whatever contract you draw up anyways. 

    1Reply
  • Mike Flatow
    Maitland, FL · Member since 2016 · 45 posts · 17 votes
    9y

    I entered a contract as renter several years ago but didn't go through with it when it was all said and done.  It was a simple contract that the seller downloaded and it was very basic.  There was no deposit required by me so I thought it was a good deal because I had nothing to lose.   Not sure if I would consider that again or not but as a seller it may give several advantages.  

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    PHillip your in an Attorney closing state.. simple enough.. I have sold property to tenants.. of course I am a broker but I did not operate in that capacity other than to disclose I was a broker.

    your closing attonreys in SC can hold your hands through the process no problem just make sure they get qualified at a reputable lender before you go to far down the track.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Ben S.
    Investor · Tampa, FL · Member since 2017 · 122 posts · 87 votes
    9y
    Use a real estate attorney, much cheaper and probably know the laws better than realtors. Ask a title company you use for recommendations.
    1Reply
  • Philip Mullinax
    OP
    Columbia, SC · Member since 2014 · 100 posts · 12 votes
    9y

    Thanks everyone for the advice.  I am going to reach out to a real estate attorney on Monday to start the contract.  My realtor was more than happy to help me for a 3% commission :)  I think I will hold onto that money for my next investment.  Now I just need to find out from my CPA about the capital gains.

    1Reply
  • Clyde Mulkey
    Investor · Seneca, SC · Member since 2012 · 9 posts · 1 vote
    9y
    @Philip Mullinax as an investor friendly Realtor I've helped several of my clients with this type of transaction. if I'm only writing up the paperwork and setting up the attorney I will charge a small flat fee. if I need to find the buyer a lender, and walk them through the inspections all the way to closing my fee is a little more but way less than the normal commission. You may suggest the buyer hire their own agent (and have them pay the commission, yes that does happen) if they have never purchased a property before. But overall it's not a very hard process if you have a good closing attorney. feel free to contact me anytime if you have any questions. I'll be glad to help if I can.
    0Reply
  • Karen Rittenhouse
    Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
    9y

    Absolutely! There is no need for a real estate agent. A closing attorney is the person who will handle your closing.

    We buy and sell over 60 properties per year and rarely use an agent unless they bring us a buyer. We do, however, ALWAYS use an attorney. Both North and South Carolina use attorneys for closings rather than title companies. Contact an attorney and let him/her lead you from there.

    Congratulations on the sale!

    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    About 25-30% of home sales in our area is between two parties. Agree on a price, credit rpt, and you need to get your local re lawyer involved in formalizing a contract. Some states it is through title companies w/o an agent.

    0Reply
  • Brandon Ingegneri
    Rental Property Investor · Providence, RI · Member since 2015 · 1k+ posts · 594 votes
    9y

    I have done this.  What are your specific questions?

    0Reply
  • Philip Mullinax
    OP
    Columbia, SC · Member since 2014 · 100 posts · 12 votes
    9y

    Thanks guys, this definitely bolsters my confidence in not using an agent.  I think my biggest concern was about being out of state and cordinating the closing process.  All of my previous sells have gone through an agent who coordinated the completion of the contract with the buyers agent and scheduled the closing for me.  It sounds like the re attorney will help direct me as far as what I will need to do and the time frames.   I appreciate everyone's suggestions and experience.

    0Reply
  • Troy GandeeBusiness Member
    Real Estate Broker · Charleston, SC · Member since 2013 · 795 posts · 454 votes
    9y

    @Philip Mullinax I agree with what other folks are saying. You'll have to use an attorney to close the property anyway. Just do your best writing up a contract and then send it to the buyer's chosen attorney or one you both agree on. Tell them that you'll need their help enforcing the contract as there is no agent involved. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free