With all the foreclosures and pre-foreclosures going on in Northeastern Ohio, has anyone out there been subjected to writing Lease options and Lease purchases. I feel this is the next step in housing sales. Would you want your comission paid in full up front or would you wait till the option is exercised?
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes
Well I dont see how you could be paid upfront. The option doesnt take affect until the tenant decides to proceed forward with the sale portion. They dont have to purchase the property at the end of the deal. If you were paid upfront that would mean you could potential be paid on something that never sells. Would you give the money back if it didnt? It's a lease until it's exercised. If they agree to pay you something for the leasing portion of it ok, but not the sale.
Jul 13, 2008 10:29 AM
Century 21 Beal, Inc. - College Station, TX
If you could somehow get paid upfront you always should. However, a lease option is not a guaranteed sale, so I don't know how you can argue to be paid that way. One thought though, you should at the very least be paid for finding the tenant. If you have found how to be paid on a lease option, post it and let us know how!!!
Jul 13, 2008 10:34 AM
Allen Tate Realtors - Greenville, SC
Fran, the only two I've worked with did not work out. The buyers seldom ever actually buy the house, The financial issues that kept them from buying then, will probably keep them from buying now. Also, there is some sort of loophole in our state law (or used to be) that can keep landlords/owners from being able to evict the tenant. The case I am remembering, although vaguely, a tenant stayed in the home for a year without paying any rent. I'm sure there are more details I do not remember, but a fomer broker would not allow his agents to do Lease Purchases because it put his brokerage in jeopardy of a lawsuit should that happen in his office. The law may have been ammended; if I find out what it is, I will let you know.
Jul 13, 2008 10:52 AM
Christian Realty San Antonio - San Antonio, TX
GRI, e-PRO, TAHS, SFR, Notary Public
I keep hearing horro stories about lease options--in church this morning in fact. I tell customers to stay away from them if possible.
Dominick
Jul 13, 2008 11:20 AM
JPMorgan Chase Bank, NA - Canton, OH
Senior Home Lending Advisor
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate
I think people who shy away from them don't know about them. It is like anything else, you need to learn about them. Do they often work? Not always.
Aug 13, 2008 01:39 PM
Anonymous
I have not found a realtor who wants to work with me on my lease/option program-it's too bad. It is a great way for people who want a house to try before the they buy and clean up there credit. I don't recommend anyone who has been in bankruptcy or foreclosure recently to attempt buying a house this way, but if your client just needs a little more time and needs a nice house have the owner pay you a commission up front out of the non-refundable earnest money. Then get paid again when the tenants purchases the home. It can be a win-win situation.
Mar 27, 2009 08:25 AM
#7
Lease options, Lease purchase, or Contract of sale
Comments(7)