Can an associate broker do the paperwork for a lease option or do they need to get a leasing firm involved in the transaction?

Asked by Barbara Near, Kansas City, KS Sun Aug 14, 2011

Associate Broker advised me to consider a lease option when a sale did not work out. First she told me that her fee was $1000 to do the lease. Now she tells me to pay her a $1000 fee to cancel my contract as there is no sale, in addition to paying a leasing company to do the paperwork for the lease.

Help the community by answering this question:

+ web reference
Web reference:

Answers

2
Karen Paytas, Agent, Clinton Twp, MI
Mon Aug 15, 2011
Barbara:

Good Afternoon!! As Robb stated I also am not an attorney and you should seek legal counsel for legal advice. Once stating that I'm assuming by cancelling the contract she is referring to your exclusive agency contract and that's where the $1000.00 fee is coming from? There is no reason that the associate broker you were working with cannot draw up a lease with option other than they don't have the experience in doing so. The fee they charge for doing so is between you and them.

Good Luck,

Karen Paytas, GRI, CMS
Realtor
Real Living Kee Realty
586-709-8465
kpaytas@mirealsource.com
0 votes
Robb Breen, Agent, Newaygo, MI
Sun Aug 14, 2011
I am not an attorney or legal expert in real estate law so my answer here is simply food for thought. Anyone can write a lease option for you. You can even do it yourself. The fact that someone is an associate broker does not make them any more knowledgable than yourself when it comes to lease options. It is totally dependent on the education in these matters they have decided to get for themselves. Charging a fee for the lease option is of course standard. I don't work free and don't expect anyone else to either. As far as charging to cancel a contract goes that is a very open ended question. What was the contract for? (Listing a property, writing the lease option, etc.) What did the specific written terms of your contract with this associate broker state? Was there something in any contract you signed specifically stating you would be charged a fee if you canceled? Is the "contract" being canceled a written or verbal agreement? Once again... I am not a legal expert or attorney so my answer is only food for thought, and I do not know the specifics of your situation, however what you are describing does not sound like normal standard procedure in our area. It all depends on any contract you signed with the associate broker though.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more