Rent with option - Posted by Joe Trudniak

Posted by chris on January 24, 2000 at 04:04:55:


You may want to put this one over on the main newsgroup.

The realtor’s commission would depend on the landlord’s agreement with the realtor. If there is a loophole in there that the commission only must be paid for buyers that the realtor finds that would be one way to avoid it. The landlord would have entered into a written contract with the realtor which would provide the answers.

One way to get the price lowered if the landlord cannot escape the commission is to pass along to the realtor that you may use a buyer’s agent. This should place into the listing broker’s mind a split commission. The realtor getting full commission on a low priced sale can make out with more $$$ than on a somewhat higher sale with a commission split.


$50,000 sale price with one broker receiving a 6% commission would result in broker receiving $3,000.

$100,000 sale price, but now you have a buyer’s broker splitting the commission results in 3% commission for each broker. The listing agent still only makes out with $3,000.

-Hope this helps, Chris

Rent with option - Posted by Joe Trudniak

Posted by Joe Trudniak on January 23, 2000 at 17:29:52:

I am currently moving in a house that I will be renting (month to month).
The new landlord is willing to do a rent with an option to buy.
There is one hitch, the landlord has had the house on the market to be sold since November, but has had no offers yet.
The house is listed with a realtor until next November.
Is there anyway the landlord can get out of their contract with the realtor without paying the 6% of the asking price?
Or is their someway to work with the realtor to make this happen?
Any input would help.

Re: Rent with option - Posted by troy

Posted by troy on January 26, 2000 at 18:25:31:

If the listing agreement between the real estate agent and the landlord is to SELL the home, but the landlord has decided to RENT the home, the real estate is NOT entitled to the commission. Unless the agreement between the real estate agent & the landlord includes language concerning renting the property. However, if this is a Lease Option issue, the agent may be entitled to a commission. This is how I would handle it: Do a month to month rental with the landlord, with language giving you first right of refusal to purchase the property. Have the landlord terminate the listing agreement with the agent. Three months later enter into a full Lease Option agreement with the landlord. That should eliminate the listing broker receiving commission on the sale of the property, which should help you get a lower price. Just for the record, not all real estate agents are Realtors. A Realtor is a real estate agent who is a member of the National Association of Realtors.

The landlord should be able to cancel… - Posted by Jim-WI

Posted by Jim-WI on January 24, 2000 at 09:32:39:

The contract at any time.

The seller/landlord would not have to pay the 6% unless he already accepted an offer and now wanted to break the contract or if the realtor brought an offer for full price and the seller refused it for some reason or another (the latter is true in Wisconsin but you should check in the state that you live in).

Hope that answers your question. By the way, this would be better suited for the regular newsgroup page instead of the Cashflow Forum.

Good luck!

Re: Rent with option - Posted by chris

Posted by chris on January 24, 2000 at 04:10:00:


The seller was really hooked by the realtor if he was given 12 months to sell the property. A 90 day listing is reasonable. The landlord could talk with the realtor about cancelling the listing. If that does not produce results, the landlord should go to the head person at the brokerage to complain.