Posted by wpage on July 02, 2002 at 22:06:43:
Eric If you have the home under contract then you are exactly right as to how this would work. You would be doing a double closing. You buy then you sell all within a short space of time. The only thing I would be cautious of is signing a long term contract with the agent. Sign a contract with the agent for this client only for a period of 72 hours or maximum for 1 week. That should be enough for the agent to come up with an offer. good luck wpage
Lease option selling with realtor - Posted by Eric
Posted by Eric on July 02, 2002 at 16:29:24:
I have a lease option on a house right now. I have the house contracted for 55k. I got a call from a realtor today who has a client interested. I quoted a price of 74k, and the realtor and I agreed upon a 3% commission for her if the people decide to purchase. How would this work though. Do I need to sign something else with the actual owners? Is there anything else I want to do to cover my back? If they do want to purchase, how does that work. We take it to settlement and the people pay me and I pay the actual owner his cut (55k) and keep the rest.
Re: Lease option selling with realtor - Posted by Jim FL
Posted by Jim FL on July 03, 2002 at 23:28:15:
Eric,
Don’t sign a listing agreement with the Real Estate agent or broker.
As the others here seem to imply that you should, but only for a short period of time.
There is no need to.
Just tell the Real Estate agent that you will agree to pay a 3% commission on the sale at close, and to inlcude this in a bonified written offer, along with proof of funding from a buyer.
After this, tell the agent or broker that you will have your attorney review the offer and when they approve, you’ll sign it, and have your attorney call them to arrange the closing.
Then take your agreement with the sellers, and your agreement with the buyers to a local RE attorney, and have them set up a double close.
They can do this, and then both closes take place, with you walking away with the difference as your profit.
However, be prepared for attorney’s and title companies telling you it cannot be done.
Several probably will, so just keep looking until you find one who can. Contact your local REIA club to see if they know a good RE attorney or title company.
Take the bull by the horns, get something recorded to protect your interest, and contact the lender the buyer has, verifying their approval, and check to make sure title seasoning will not be an issue.
The mortgage broker wants to loan to close just like you, since this is when they get paid, so they should cooperate with you in gathering info, and keeping you up to date.
Good luck, and post anything else here, surely there are some people who can answer you, or point you in the right direction.
Jim FL
P.S. By the way, I’m assuming the buyer is a retail buyer here getting their own loan, or with cash?
Not a L/O buyer? Right?
Re: Lease option selling with realtor - Posted by Tom (GA)
Posted by Tom (GA) on July 03, 2002 at 14:25:17:
I agree with what wpage said about signing an agreement with a Realtor. No longer than 1 week. The “I have an interested client” line is a common lie from a Realtor trying to get a listing. (They must teach that tactic at some NAR training session for it to be as common as it is. )