L.O. & Closing - Posted by Rich

Posted by B.L.Renfrow on April 27, 2001 at 09:30:28:

It all really depends on the agent and broker. I generally avoid agents, but I just did a L/O on a property with tenant-buyers produced by my agent. She does not expect her commission unless and until the T/Bers exercise their option. I paid her half the first months’ rent up front, which I was happy to do.

But this is a fairly unusual agent, in that she understands lease options. It’s also a VERY small brokerage; the agent, her husband, who is the broker, and just one other agent. I suspect this type of deal would be much harder, if not impossible, to pull off with one of the big agencies, since the broker has to go along with it also.

Brian (NY)

L.O. & Closing - Posted by Rich

Posted by Rich on April 26, 2001 at 21:06:00:

If a person obtains a listed property via L.O., is there a closing and do the RE agents involved get a commission, or do they have to wait until the option is exercised?

Re: L.O. & Closing - Posted by Amy (TN)

Posted by Amy (TN) on April 26, 2001 at 22:16:11:

What we have found is IF a seller is able to talk a realtor in to advertising lease purchase, a huge downpayment is required, to cover the realtor’s commission up front. If you have a realtor you work with, get them to be your buyer’s agent, so at least half of the commission can be paid on a note, or at closing. So many desperate sellers don’t even realize how many options they have because their realtors won’t tell them, fearing they won’t ever get paid. I wonder why some don’t wise up and start selling a bunch of “hard to sell” property via lease purchase, then when they start popping they’ll get more commission than ever. Am I the only one with this frustration?!?!?!
:::sigh::: Amy

Re: L.O. & Closing - Posted by JohnBoy

Posted by JohnBoy on April 26, 2001 at 21:43:02:

Depends on what the listing agreement says. Some say the commission is due and some don’t. If the listing agreement doesn’t state the commission is due under a L/O then the commission wouldn’t be due until the option is exercised. Read the listing agreement and see what it says.