Home Buying in Queens>Question Details

 Sandy, Real Estate Pro in New York, NY

Do I still get my commission as a listing agent with option to buy?

Asked by Sandy, New York, NY Thu Oct 27, 2011

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I fully agree with Debbie. If you are in a listing agreement for sale and you receive an offer to lease with the option to buy, you will want to make sure to outline your commission in the lease. Generally speaking you can stipulate your commission for the sale will be due if the sale is executed at the end of the lease term.

Again as Debbie mentioned, you should also consider collecting a lease commission.

Good Luck
1 vote Thank Flag Link Fri Oct 28, 2011
Hi Sandy,

Most least options pay the listing and selling broker a commission once the option is executed. If you are looking for a commission at the signing of the lease you must put it in the agreement that you will be paid upon execution of the lease. It is possible to get perhaps 1/2 of the commission now and the balance at the purchase. Hope this helps
1 vote Thank Flag Link Thu Oct 27, 2011
You should.

Wendy Patton, a Michigan Realtor and a proponent of lease-options, has developed a strategy whereby the agents can get some, much, or even all of their commissions up front. Here's a link to an article she wrote addressing the topic: http://www.wendypatton.com/articles/getting-realtors-begging…

Basically, as much of the commission as possible is paid from the up-front option fee paid by the tenant-buyer.

Hope that helps.
0 votes Thank Flag Link Fri Oct 28, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Yes you are entitled to commission, but you really should be discussing the question with your broker owner and any internal policy on it's structure.
0 votes Thank Flag Link Fri Oct 28, 2011
You are entitled to your commission as long as you have a contractual agreement with all parties involved!
0 votes Thank Flag Link Fri Oct 28, 2011
Janet - read Sandy's question again..............."as the listing agent"

If she is the listing agent and the seller decides to enter into a lease with an option to buy arrangement, rather than just outright sell the home, as the listing agent and a party to the transaction, any listing agent would expect to be paid the listing commission at the end of the period, if the option is exercised.
Any commission should be stipulated in the contract.

At the very least, a rental commission may also be due, as there is no assurance that the sale will take place at the end of the lease.
0 votes Thank Flag Link Thu Oct 27, 2011
Now that I understand the question better, I'm going to respectfully disagree with Debbie. If you only signed a rental agreement with the owner and got paid on that and did not sign not the typical listing agreement for sale, I don't see how a commission will be coming your way.
0 votes Thank Flag Link Thu Oct 27, 2011
Sandy,
Read your listing agreement and the option contract. Chances are, if the option is exercised you will get paid the sale commission. If not, you may get to relist the home for sale. Hopefully you get a partial commission for the option.
0 votes Thank Flag Link Thu Oct 27, 2011
Sure - you get your commission - IF the option to buy is exercised, and the client actually buys the home...........all of this should be stipulated in the contract

are you getting a commission on the rental?
0 votes Thank Flag Link Thu Oct 27, 2011
Sandy, I don't understand your question. Can you elaborate?
0 votes Thank Flag Link Thu Oct 27, 2011
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