Home Selling in 60532>Question Details

Jamie, Home Seller in 60532

Commission to real estate agents for rental is one months rent to be split between the two agents.

Asked by Jamie, 60532 Mon Nov 9, 2009

What if the same tenants want to renew the lease for another year. Am I obligated to give those agents ANOTHER one months commission? They want to do a lease option and I understand the agents will get their commission for the sale of the home but if they decide to continue renting, I DO NOT feel I should pay another commission based on those tenants staying in the home for another lease agreement. Does anyone know which is true?

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6
Hi Jamie- Looks like you are in Lisle. Did you use a "Main Street Organization of Realtors Lease"? If so, on the 2nd page of the lease....paragraph 6.....is the information on commission. It should have the commission amount for the lease, including if there is a renewal or extension and a commission amount if the tenants purchase the home. If you have any questions about the information in your lease, you should contact a real estate attorney.

I hope this helps!
2 votes Thank Flag Link Sun Nov 15, 2009
Hey Jamie,

this is quite interesting question because there is no concrete answers for it.. it is all depending on the listing contract that you have had with the agent who listed your property and got it rented.. I for example do not charge for any lease renewals however if the tenants bought the home then I do ask for my commission.

my advice is that you call the listing agent and explain the situation, many of them will be reasonable to work with and I would think if they are a true good agents and/or sales people they will see the benefits of getting your business again vs. making a small commission now..

please let me know if you need any real estate help. my cell is 630-329-5000.

Good luck.
Inaas Arabi
Re/Max of Naperville
2 votes Thank Flag Link Mon Nov 9, 2009
Jamie
You need to read the lease agreement. If you have questions then consult a real estate attorney. You should be able to negotiate a "fair" arrangement.
0 votes Thank Flag Link Mon Nov 9, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
I just had the same situation with a rental in Batavia. The prospective buyer signed a 2 year lease with the option to purchase the property after 2 years. There's a 1 month lease commission paid at the signing of the agreement, with another 1 month commission being paid next year on the aniversary date and a sales commission paid in 2 years at the closing for the purchase.

It depends on your agreement. If the agent procured someone to lease and then purchase, in most cases you may have to pay a commission every year and also on the sale.

Something that many people don't understand is that you need to agree on a sales price "now". Even if it's in 2 years.
0 votes Thank Flag Link Mon Nov 9, 2009
This all depends on what you agreed to do when you originally signed the listing leasing agreement. You need to read your listing agreement.
0 votes Thank Flag Link Mon Nov 9, 2009
It will depend on the broker listing agreement you signed when the listing agent listed the home for you (for rent or for sale). You will also find language about the commission in the rental agreement (especially if the tenant decides to purchase the home). I agree that it does not seem fair to make you pay again - but you need to look at what you signed.
Web Reference: http://www.yvonnerusin.com
0 votes Thank Flag Link Mon Nov 9, 2009
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