If a property is listed with a real estate agency and the seller wants to do a lease with option to buy with a seller, is the real estate agent entitled to a commission? :question
Assuming you made a mistake in question as a seller does not l/p with himself, the answer is Yes, the agent would be entitled to a commission if a lease purchase was agreed during the listing. If, however, the agent’s listing expires and the buyer and seller found each other and that prospective buyer was not introduced through the agent, then the agent would be removed. Understand also that it would be important to see the listing agreement in the event there is a contract made within a certain time after the listing is terminated or expired.
Having said all of that, it is most important to maintain integrity in your business! No funny business when your business and reputation is on the line. If the agent introduced you or you contacted the agent regarding the property, it is advised not to go behind an agent’s back to do a deal directly with the seller.
There are too many good deals to be had that maintain integrity and you do not need to tarnish you reputation over one deal.
OK, more advice than you requested, but I hope this helps.
Rob
R.E. Investor/Mentor
There are 2 different types of listings that agents list. Sales listings and rental listings. Rental listings are usually 1 month rent for commission while sale are typically 6% of the sales price.
So if you list a house that is worth $100,000 and rents for $1,000/month. You don’t want to pay a commission of $6,000 for a $1,000/month rental.
Typically since the sale does not actually occur until 1 to 2 years from that date the actual listing is for a rental. The option has to be executed to become a sale. Usually the broker will list the rental with 3 dispositions. #1 Straight rental, #2 rent option #3 Secton 8. Each of them will be deemed a rental with you paying 1 month.
The answer depends on the agreement used… If an Open then the answer is NO… Is Agency I would say No too unless the Brokers agency found the buyer, finding the buyer also applies to the Open agreement. If exclusive then Yes.
An exception would be if the Seller reserved the right to L/O or if they reserved Buyers.
Most brokers only charge a cancellation fee. Some agents elect to “withdraw” the listing over cancel it which still entitles them to a commission if the seller enters into an agreement to sell during the listing period.
I would suggest that the seller speak with the Broker and negotiate a settlement. After all a broker doesn’t want bad press even if they are in the right.