Edited to make my questions more clear:

1 - What is the difference between a strait "delayed closing" and a "lease purchase".

2 - How do they differ in terms of when and how commissions are paid out?

3 - Can I use a property manager to care for the propery in both circumstances?

Thank you....

This message has been edited. Last edited by: Ventana,

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.

Since you are listed, your Realty office, which both of your agents (sales and rental) work out of.. will both be facilitating all paperwork.

This message has been edited. Last edited by: real estate lady,

i think my question was misunderstood....so I made it more clear....

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....

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.

This message has been edited. Last edited by: real estate lady,

quote:

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.

Im confused. Can you further explain?

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.

quote:

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.

Many rental commissions here are 10% of the monthly rent, some have fixed amounts.
ie. $1,000 rent p/month, I bring the renter, I get $100.