Realtor's commission.

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From: Purple Canary


I have found a house through a real estate salesperson which I would like to lease-purchase on a one year contract. My question is: how and when is the salesperson's commission paid?
Is it paid when the lease-purchase agreement is signed, or when the deal settles in one year or do I approach the vendor separately? (an option I would consider a little unethical)

The Purple Canary

 

[michaelg]

Reply: 1
From: Michael G


Hi,

Havent done any of the such, but logically, if you dont exercise the option in 1yr's time, then you never bought the property. So how could the agent claim a commission now?

The lease has to expire and the option has to take effect, before then its not sold, but just leased.

If you dont buy, then the property has to be remarketed anyway.

Just my thoughts.

Michael

 

[paulzag]

Reply: 1.1
From: Paul Zagoridis


Except why would the agent care to support your offer to the vendor (Purple found the place through the agent). Almost all vendor's ask their agent "what do you think?"

So it's another part of the creative real estate puzzle. Solving problems is how to make money when buying.

Getting the Agent on-side is potentially easier than indemnifying the vendor by approaching directly. The Agent's commission could be paid on the value of the deal. The deposit should be held in the agent's trust account.

Of course as John Burley says, your game, your rules.

Paul Zag
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