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bkyleclark91

LO's As a Realtor

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Ill soon have my real estate license and I have a couple questions. Im familiar with the process as acting as an "investor", but not an agent representing the seller.

 

I realize I would need to disclose I am an agent. Most brokers will want a commission split from lease option assignments. I see that if I go the assignment of contract route I am acting as principle, but I would like to run them as a listing and have them on the MLS. If I were to sell peoples residences on lease options I would get a "exclusive right to sell agreement" signed, correct.

 

Once I have that signed I put it on the MLS as an listing or lease option?

Is there a different agreement between the seller and agency? Or just the lease and option agreement between the seller/buyer?

How do I get paid for finding the buyer since I thought agents get paid when escrow closes(Which would be 12-18 months, if the buyer exercises their right to buy)?

 

Can anyone who does these as a licensed agent chime in? Thank you!!!!

 

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Part of our selling point is that they don't pay Realtors fees, so a selling commission should not come into play. I would do it as a rental commission, since that is what they are doing, finding you a renter that MAY buy the property. They have the option, not the obligation to buy, so there could very well be no sale anyway. I'm finding that most Realtors do it as a rent listing, although I'm trying to get them to do it as a sale listing with terms, just like a land contract would be. It doesn't change their commission, but opens up the property to be seen by more buyers I think. (In my contracts I point out that if I list it with a Realtor, I pay their fee, so that comes into account when I'm negotiating the deal.)

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Yeh, gotta track down Jonathan, Ive already picked up some nuggets of info from his posts. Got his phone number now, thanks.

 

Makes sense getting money for tenant placement, then if they exercise their right to buy you can make money on the back end.

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You don't say what state your in. So you will need to check with your state but for example in California you don't need to disclose your an agent. That requirement is one required under the Realtor's code of ethics, not state law, so you could be fined by the real estate board but it is not a reason that would cause the loss of a license. Another factor is your contract with your broker may require it. However many licensees had the deal done by their spouse as the official principle in the deal and keep the licensee out of it, Snicker, Snicker.

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