This is where a real estate attorney is needed to protect your interests.
"A lease purchase is a true sale, but with a delayed but predetermined closing date often six months or more in the future. It works well when a seller needs to move but the house hasn't sold. It can also accommodate an otherwise strong buyer who needs time for their house to sell or to accumulate additional time on the job in order to qualify for a mortgage loan." Read more here: http://realtytimes.com/rtpages/20000901_leasepurchase.htm
The difference between a lease option and lease purchase is basically that under a lease option the buyer can decide at the end of the agreed upon lease period that he either wants to exercise his option to buy the home, or exercise his option to pass on the home, he has an option.
Lease purchase is basically a delayed closing whereby the purchase agreement is written with whatever terms apply to what you and the buyer agree to and a future date (delayed closing) is set for closing. If the buyer defaults and doesn't come through for closing, the seller has whatever recourse is spelled out in the contract.
If you're considering going this route, consult an attorney to make sure all your bases are covered and that you have some serious penalties written into the contract in case the buyer backs out.
I think what you really want answered is ques. #2 ? When is commission paid?
Answer: unless otherwise specified in the contract, at time of settlement.
Now this can vary by State, by Brokerage AND by individual contract clauses, so ask your agent? That will be the ONLY person who has the correct answer....
Posts: 1862 | Location: Pa | Registered: Sep 18, 2002
Ventana - I noticed on your "rental" MLS listing--rental commission states 10%, which usually refers to "that of first month's rent". Mo. rent $1695. = comm. to buyers(rental) agent $169.50???? Have her look at it. A mistake? Just a heads up.
Originally posted by real estate lady: Ventana - I noticed on your "rental" MLS listing--rental commission states 10%, which usually refers to "that of first month's rent". Mo. rent $1695. = comm. to buyers(rental) agent $169.50???? Have her look at it. A mistake? Just a heads up.
Have her e-mail you a copy of the "rental" listing as it shows in MLS. Then ask her what fee is be offered to the agent bringing the tenant. It is not clear.
Originally posted by real estate lady: Have her e-mail you a copy of the "rental" listing as it shows in MLS. Then ask her what fee is be offered to the agent bringing the tenant. It is not clear.
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REL - Thanks for the heads up. If this new deal does not materialize then I will definatly look into the matter. I know SHE gets 1/2 months rent if she finds the tennent.
I know SHE gets 1/2 months rent if she finds the tennent.
