Lease Option Question

Comments(6)

• 
  realestateprofit20th March, 2003

  disregard this post.
  
  I found the answer I was looking for and which I like. Let the seller worry about getting out of the contract. if it's been listed for a year, he should have no problem in getting it released.
  
  Thanks anyway,
  
  Vic

• 
  emoore22nd March, 2003

  Usually it is on contract for 6 months. Just make sure he puts it in writing to the agent and their broker so it is officially cancelled.

• 
  22nd March, 2003

  Quote:
  On 2003-03-20 23:58, realestateprofit wrote:
  disregard this post.
  
  I found the answer I was looking for and which I like. Let the seller worry about getting out of the contract. if it's been listed for a year, he should have no problem in getting it released.
  
  Thanks anyway,
  
  Vic
  
  
  
  Vic,
  
  Although you said to disregard this post, I thought you might want to think about something to CYA yourself.
  
  In many states there is a tort law known as "interference with contractual relations" or "interference with economic advantage." If you induce the seller to cancel the listing contract so that you can do a deal directly with the seller, the realtor could sue you for causing the seller to cancel their contract. While many realtors may not pursue this action, I know of some realtors that would have no problem doing it ... if for nothing else to try to get you to make a settlement so you can avoid it going to a full trial.
  
  Most REI's are not aware of these laws, but should be. However, you might not have any problem if you suggest to the seller you would like to do a deal with him, but you will not pay a commission. Then suggest to him that if the realtor has not been able to sell the property, maybe the property is priced too high or the realtor is not a very good marketer.
  
  So my point here is that it is not entirely "the seller's problem." You need to watch how far you go in getting the seller to cancel their listing contract.
  
  Taxjunkie

• 
  realestateprofit22nd March, 2003

  Taxjunkie,
  
  You always provide sound advice from what i've read of your posts. Thank you.
  
  I visited with the sellers today (who by the way seem to be very interested) and told them that we cannot go any further...until the listing contract is cancelled (after a year I imagine that shouldn't be too hard). I told him we could talk about price...but if things are to get serious then he needs to do what he needs to do with the realtor.
  
  I'm going to quote a price to him this week...that's if I still want to purchase.
  
  I imagine i'm not crossing any lines here am I? I know it's a fine line...but how else could you really do this with a realtor in the way (other than waiting for the contract to expire).
  
  Thanks for your help,
  
  Vic
  [addsig]

• 
  22nd March, 2003

  As long as you don't make your written offer before the realtor's contract is cancelled by the seller, you probably won't have any problem because you were not obligated to buy the property at the time the realtor's contract was cancelled.
  
  However, even if you have made an offer before the contract is signed, you still will not have any problem if you do not discuss how the seller should cancel his/her contract with the realtor. I think you put it well, that the seller has to deal with the realtor himself and decide if he can work out a deal with the realtor to cancel the contract. Most realtors would be happy to do this because they don't want to create a bad name in the neighborhood (i.e., their target listing market area).
  
  However, realtor's work hard and spend a considerable amount of money trying to market someone's property. If the listing had been active only for 2-3 months, I would have just told the seller that I would be interested in discussing a deal, but only after their contract with the realtor had expired. Then I would suggest they give me a call if the house has not sold after the listing is up. I think that is a fair way to dealing with the situation for you. However, in your case since the listing has been active for over a year with no sale, I would probably take the same approach you have.
  
  Keep in mind that you don't want to create a bad name for yourself with realtor's in town. They provide a valuable service and sooner or later you may need one to help you sell one or your properties.
  
  Good luck,
  
  Taxjunkie

• 
  realestateprofit23rd March, 2003

  Agreed.
  
  Thanks for your advice. I look forward to your posts.
  
  best of luck,
  
  Vic
  [addsig]