If any of you have had or know any agents that have received full or partial payment of a commission on a Lease to Purchase prior to the actual transfer of title please let me know.
Lease to Purchase Agreements are becoming more and more prevalent in some markets. We are seeing them even at Lake Anna.
A seller I am working with is considering one right now and I am trying to figure out if there is any legal way we can include at least a partial commission in the terms.
Last August one of my listings had a Lease to Purchase Agreement accepted by my seller. At that time we had the house listed for sale and also as a Lease to Purchase. I received a payment equal to one month's rent on that transaction at the time the lease began. I am still confident this house will be going to settlement, August 2009, and our brokerage will receive the commission at that time. However, we have no guarantee.
The waterfront home I have listed now is in the MLS as a sale only priced at $698,000. We had a client from another company go to the seller's home days ago and propose a Lease to Purchase. At this point we are all trying to work out possible terms. (We are also trying hard to not offend the possible purchaser by asking him to work through the agents.)
My concern is the delay in the commission payment. Purchaser/Lessee would like a 2-3 year lease. I discouraged my client on the three year lease because of how it would affect her ownership of the house. If it did not settlement prior to three years of a lease she would have capital gains reprecussions as she will not have lived in the house for two out of the last five.
I understand the need to consider the sellers needs above my own and that is fine. However, I am wondering if there is a legitimate way we (the two brokers) can receive some compensation for all the work we have to do in order to make this happen.
What happened to time is of the essence (for the REALTORS®)?
The seller will be receiving an upfront payment plus monthly payments. The purchaser will be receiving the use of the house. And the agents???????????????????????????
Are any of you experiencing this situation? How are you handling it?
If any of you have any knowledge of how this can be done or suggetions I would appreciate it very much.
I would like to thank ActiveRain and my fellow Rainers in advance.
If you or someone you know is thinking of buying or selling property at or near Lake Anna, Virginia please contact Kathleen "Kate" Elim. Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate.