Comments on: How Does a Realtor Get Paid on a Land Contract or Lease Purchase Option (Rent to Own) Sale? http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/ SEO dedicated for realtors to generate a storm of inquiries Fri, 12 Nov 2010 16:08:48 +0000 http://wordpress.org/?v=2.8.4 hourly 1 By: newmexicorealestateforms http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-252 newmexicorealestateforms Sat, 17 Jan 2009 07:21:27 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-252 Jane, we're in rural northern NM and most of our sales are land/realestate contracts and we do take our commission on time most of the time. We do it by taking the same percentage the seller gets from the downpayment, we create a promissory note at the same rate the seller does from the seller and we escrow the note with escrow instructions that from the payment received we get the payment on our note first and the balance to go to seller. If the buyer defaults the seller is still obligated under the note. All titles as you know are escrowed waiting for the performances of the parties and the instructions are such that no matter what happens there are instructions to cover it. Jane, we’re in rural northern NM and most of our sales are land/realestate contracts and we do take our commission on time most of the time. We do it by taking the same percentage the seller gets from the downpayment, we create a promissory note at the same rate the seller does from the seller and we escrow the note with escrow instructions that from the payment received we get the payment on our note first and the balance to go to seller. If the buyer defaults the seller is still obligated under the note. All titles as you know are escrowed waiting for the performances of the parties and the instructions are such that no matter what happens there are instructions to cover it.

]]> By: CNN NNC http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-251 CNN NNC Fri, 16 Jan 2009 23:55:56 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-251 When I was an agent and did land contracts, I usually agreed with he seller to take 1/2 the commission when the land contract was signed and the other half in monthly payments over 3 years as the seller got the land contract payments. A word of warning. It is hard to get title insurance on land contracts. When I was doing this only Chicago Title would issue title insurance. Also, land contracts are in invitation to a law suit. I recommend that as the agent you get legal advice from a real estate attorney. Some of the problems are: What happens if the seller dies before title is transferred? What happens if the seller can not be found when all payments on the land contract are made? Does the buyer have any equity if the payments are not made. Can a lender call the loan that has a due on sale clause if the property is "sold" with a land contract. What is the agents liability if something goes wrong. Good Luck When I was an agent and did land contracts, I usually agreed with he seller to take 1/2 the commission when the land contract was signed and the other half in monthly payments over 3 years as the seller got the land contract payments.

A word of warning. It is hard to get title insurance on land contracts. When I was doing this only Chicago Title would issue title insurance.

Also, land contracts are in invitation to a law suit. I recommend that as the agent you get legal advice from a real estate attorney.

Some of the problems are:

What happens if the seller dies before title is transferred?

What happens if the seller can not be found when all payments on the land contract are made?

Does the buyer have any equity if the payments are not made.

Can a lender call the loan that has a due on sale clause if the property is “sold” with a land contract.

What is the agents liability if something goes wrong.

Good Luck

]]> By: beachykids4 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-250 beachykids4 Thu, 15 Jan 2009 06:50:33 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-250 Hello, don't make any plans of running to the bank with any checks just yet... It is true, you do not get paid until ~~ and if~~ there ever even is a closing. You will spend allot of time, "looking" with your clients, the market is so slow & dead & pleantyful ~~ and then good luck getting an approval from a lender, then working something out with both landloard & "hopefully owner" , if they do not close by your contract date, then they can re-do another contract, with out you, and you lose... Allot of time spent, not much chance of getting any $$ ~ 2 or 3 years down the road... sorry... Good Luck ~~~ Hello, don’t make any plans of running to the bank with any checks just yet… It is true, you do not get paid until ~~
and if~~ there ever even is a closing. You will spend allot of time, “looking” with your clients, the market is so slow & dead & pleantyful ~~ and then good luck getting an approval from a lender, then working something out with both landloard & “hopefully owner” , if they do not close by your contract date, then they can re-do another contract, with out you, and you lose…
Allot of time spent, not much chance of getting any $$ ~
2 or 3 years down the road… sorry…
Good Luck ~~~

]]> By: Adam T http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-249 Adam T Thu, 15 Jan 2009 04:14:05 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-249 that is up to the broker and the seller in most cases the commission is disbursed at time a loan is closed but cases may very a good way to handle this is to have the buyer put % down to cover all commissions title fees and taxes and such so that is out of the way up front then when they get the loan the title company or attny already has the funds in this case it is possible to collect your commission when buyer recieves equitable title (contract) that is up to the broker and the seller in most cases the commission is disbursed at time a loan is closed but cases may very
a good way to handle this is to have the buyer put % down to cover all commissions title fees and taxes and such so that is out of the way up front then when they get the loan the title company or attny already has the funds in this case it is possible to collect your commission when buyer recieves equitable title (contract)

]]> By: Sharon http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-248 Sharon Tue, 13 Jan 2009 05:34:58 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-248 I believe you get paid at closing, whenever that is. I believe you get paid at closing, whenever that is.

]]> By: Phillyfan http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/comment-page-1/#comment-247 Phillyfan Mon, 12 Jan 2009 03:46:15 +0000 http://pixseo.com/blog/how-does-a-realtor-get-paid-on-a-land-contract-or-lease-purchase-option-rent-to-own-sale/#comment-247 I'm under the impression they would not get paid until the Purchase or Sale portion of the contract was enforced. Otherwise it's just a rental agreement, and MAYBE the realtor gets a finder's fee... I’m under the impression they would not get paid until the Purchase or Sale portion of the contract was enforced. Otherwise it’s just a rental agreement, and MAYBE the realtor gets a finder’s fee…

]]>