Quote:
Originally Posted by A930Rocket
We want to buy the house we’ve been renting instead of building another house for now. Our lease ends at the end of February.
It just went on the market, so there is an agent involved (3% commission), plus the rental property manager has a stipulation in the rental agreement that he gets a 3% commission if the renter buys the house.
If we wanted to work with the owner directly and possibly get a better deal by avoiding commissions, what is the time frame we would need to wait?
If we left the agent and the property manager in the mix, what would happen if we had an agent represent us? Would it be 3% to the property manager and 3% split between the buyers and sellers agents?
Thanks
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I am a RE Broker in NJ and every state operates a little differently but by and large the "rules" are the same.
I am a little confused by your question? Regarding the property manager, what exactly is the clause (in your lease I assume?) that the property manager gets 3% if the renter buys the house? Is the property manager a real estate company? Did the property manager originally bring you into the property? Is it the same property manager now as to when you took tenancy?
Typically the commission is set and that is what is paid by the seller if the house sells. If a buyers brings their own agent (the buyers agent) the commission is split between the agents. 1.5 to sellers agent, 1.5 to buyers agent (based on the information you posted) it depends on what is in the listing agreement how commission is paid. Commissions and listing times are negotiable and done before signing the listing agreement. But that doesn't mean commissions can't be renegotiated. There are cases when a buyer pays their agent separate or in addition to the commission. This is rare and probably not in this market.
You and the seller may also be able to claim that discussions for you to to buy the house were on going prior to the listing agreement being signed and therefore commission paid if you buy the house is excluded or maybe reduced.
There is also a thing called a transaction broker where you and the buyer come to agreement and the "transaction" broker simply does the paperwork. A transaction broker will often collect a reduced commission or a flat fee.
There is a bit more information needed to know exactly where you stand and what your options are. The first two things is you need to know better about the property manager clause and exactly the commission being paid by the seller.
Hope that helps?