Can a realtor charge a commision on a lease with option to buy? My realtor wants to charge 3% now on an option that isn't yet exercised, &

Asked by Sylvia, 71226 Fri Jun 11, 2010

may not be.

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8
Debra (Debbi…, Agent, Livingston, NJ
Sat Jun 12, 2010
Sylvia - maybe I don't understand your question

Are you saying your agent wants you to pay a selling commission of 3% NOW, even though the option to purchase hasn't yet been exercised? I assume the time frame for it to be exercised will be at the end of the rental term.

I would think a rental commission is due now...to be followed by the agreed-upon 3% sale commission when, and if, the sale takes place.

Personally, I wouldn't expect to be paid a sales commission out of the option money prior to the sale going through.

If your arrangement differs from that - it is between you and your agent, I would further assume you have an agreement in writing with the Broker that spells out how any commission (s) would be paid.

Good luck!
1 vote
If they found a real tenant buyer, screened the applications, had a relationship with a mortgagor to go over the finances to know there is a good chance of them closing within the time frame agreed upon. Making sure the realtor gets a decent amount of consideration seems fair to me.
Flag Fri Jan 17, 2014
wacina92, Both Buyer And Seller, Fayetteville, NC
Fri Jan 17, 2014
I have a house if a realtor would find me a tenant buyer I would be happy to let them have their 3% of the purchase price (coming out of the tenant buyer's deposit money). If they found a real tenant buyer, screened the applications, had a relationship with a mortgagor to go over the finances to know there is a good chance of them closing within the time frame agreed upon. Making sure the realtor gets a decent amount of consideration seems fair to me.
0 votes
Daniel, , Baton Rouge, LA
Tue May 15, 2012
The Realtor "earned" the commission when two willing parties AGREE. Once you have an agreement the seller is obligated to pay the listing agent regardless if the deal falls apart.
0 votes
Sorry Dan, that's idiotic... the agent then can run around and get any a-hole (like his cousin) put the thing in escrow.... are you stupid, or a criminal?? LOL
Flag Fri Jul 18, 2014
Evan Garcia, Agent, Norwalk, CA
Thu Apr 12, 2012
its hard to say in this question, here is how it works the owner of the lease usual hires the agent for either a flat fee or commission on normal 6 percent of the year lease term total so lets say a home is being leased for 1800.00 per month on 12 months =$21,600.00...x6% its $1296. for full service and agent will give half of that to leasing agent...
if its month to month then flat fee is negotiable and usually the landlord pays commission's from security deposit,

now with option to buy they need to put it under contract to list or for service of agents on paperwork
optional to landlord aka seller due to the service will be for Realtor helping with paperwork if the buyer is already their then 3 percent should sound right because they are only representing seller endless buyer hires their own Realtor
0 votes
Ruth and Per…, Agent, Los Gatos, CA
Wed Aug 4, 2010
Hi Sylvia

You pay the three percent when the purchase happens, clearly there is some inexperience involved
With your current Realtor.

However, you would owe him a commission for the Lease.

Good luck, let us know how it works out.

Best regards
Perry
Web Reference:  http://Www.ruthandperry.com
0 votes
Jason Stevens, , Englewood, FL
Sat Jun 12, 2010
I have done several lease with an option to buy for customers and I get a commission on the rental only. If/when the option is exercised then I get paid the commission for the sale. I would not pay a commission on a deal that may not happen. Paying a commission on the rental(lease) is advised. Usually 1 months rent or 10% of the annual lease per year is a suitable fee to pay.

Good Luck
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sat Jun 12, 2010
Discuss the issue with your agent first and possibly with the broker owner or office manager of the realty office as they often determine payments due, not due. No knowing all the facts--if your agent did bring a meeting of the minds and the deal was to move forward, but you changed your mind or whatever, the agent may be entitled to a commission--again discuss with your agent or consult with an attorney who specializes in real estate for an accurate answer based on your specific circumstances. Again without much information not an easy question to answer.
0 votes
James Gordon…, Agent, Hamilton, OH
Sat Jun 12, 2010
Sylvia you should have enough from the option fee to pay your Realtor® for negotiating the lease option. In my opinion if you did not get a option fee from the people that have the option you have 2 things going. First you sold an option to purchase the property for no consideration. Second you have tenants that have no incentive to purchase the property at the end of the option period.
0 votes
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