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New Member
billmack30
Posts: 2
Registered: ‎01-04-2008

Want to buy house I'm renting from my landlord

My landlord was trying to sell her townhouse last Aug and couldn't so she decided to rent it out. We signed a lease for 1 year. We have had a good year and we are thinking of buying a place instead of continuing to rent. We emailed our landlord asking her if she would consider selling to us. She said she'll think about it and get back to us. That's where we are. What would be the process for this to happen if she replies that she is interested?
 
Also, in the email she stated:
 
" I will definately give it some consideration. Too bad we have to pay a commission to the Realtor!  That could save you some money."
 
I didn't want to reply - "Why would we have to pay commission, I have a seller and you have a buyer. What is the need for an agent?" I understand realtors do more than just find buyers and sellers, however I am curious. Could she still have some sort of contract with her realtor from last Aug that says if she sells the home the realtor gets commission?
Frequent Contributor
steelfan
Posts: 473
Registered: ‎03-06-2007

Re: Want to buy house I'm renting from my landlord



billmack30 wrote:
My landlord was trying to sell her townhouse last Aug and couldn't so she decided to rent it out. We signed a lease for 1 year. We have had a good year and we are thinking of buying a place instead of continuing to rent. We emailed our landlord asking her if she would consider selling to us. She said she'll think about it and get back to us. That's where we are. What would be the process for this to happen if she replies that she is interested?
 
Also, in the email she stated:
 
" I will definately give it some consideration. Too bad we have to pay a commission to the Realtor!  That could save you some money."
 
I didn't want to reply - "Why would we have to pay commission, I have a seller and you have a buyer. What is the need for an agent?" I understand realtors do more than just find buyers and sellers, however I am curious. Could she still have some sort of contract with her realtor from last Aug that says if she sells the home the realtor gets commission?


The seller is responsible for paying the commission which usually comes right out of the mortgage bank check.  A lot of buyers agents work for free in essence that they dont ask for money from you but usually split the commission with the seller's agent.  Unless your landlord signed a new contract with their realtor she shouldn't have to pay the commission because most people only sign no more than a 1 year contract.
Super Contributor
ShanetheMortgageMan
Posts: 7,753
Registered: ‎09-28-2007

Re: Want to buy house I'm renting from my landlord



steelfan wrote:


billmack30 wrote:
My landlord was trying to sell her townhouse last Aug and couldn't so she decided to rent it out. We signed a lease for 1 year. We have had a good year and we are thinking of buying a place instead of continuing to rent. We emailed our landlord asking her if she would consider selling to us. She said she'll think about it and get back to us. That's where we are. What would be the process for this to happen if she replies that she is interested?
 
Also, in the email she stated:
 
" I will definately give it some consideration. Too bad we have to pay a commission to the Realtor!  That could save you some money."
 
I didn't want to reply - "Why would we have to pay commission, I have a seller and you have a buyer. What is the need for an agent?" I understand realtors do more than just find buyers and sellers, however I am curious. Could she still have some sort of contract with her realtor from last Aug that says if she sells the home the realtor gets commission?


The seller is responsible for paying the commission which usually comes right out of the mortgage bank check.  A lot of buyers agents work for free in essence that they dont ask for money from you but usually split the commission with the seller's agent.  Unless your landlord signed a new contract with their realtor she shouldn't have to pay the commission because most people only sign no more than a 1 year contract.


Bingo.  Usually a seller has a listing contract with their real estate agent for a certain amount of time, ask the owner if they are still under contract with a real estate agent to sell their home.
Valued Contributor
Lady_Scarlet
Posts: 2,385
Registered: ‎09-10-2007

Re: Want to buy house I'm renting from my landlord

Depends on the contract - IF I place the tenant in a property and the tenant then buys the property (the time frame can vary  -I always double the initial lease periodin the protection clause) - yes, I am due a commission.
 
By the time you each pay a lawyer to write the contract (and negotiate and review it) - you have basically paid the commission (if not more) in legal fees.  My sister-in-law is a lawyer --- she tired to seel her own house during the boom (wanting to save moneyZ) and ended up calling me to to 'fix' what she had done... a Realtor's businees is selling houses - but the bigest assets I bring are my knowlegde of the contract and my ability to get it to closing.
 
My job is broken down as follows ( %vary with market conditions) right now:
 
40% either marketing the property or educating the buyer and finding a house
30% negotiating the contract
30% getting itclose after a ratified contract.
 
 
Now a member of the UNOFFICIAL 700 Club - Plus scores of 734-734-747

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