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When is commission due to the Realtor when a lease purchase option is exercised?
Wiki User
∙ 12y ago
I am considering a lease-purchase agreement now to a prospective tenant, and the real estate agency's contract says that the commission is due when title is transferred. This would normally be at closing.
Tim
Wiki User
∙ 12y ago
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What is American put Option?
An American put option can be exercised at any time during its life. The European put option can only be exercised at the end of the contract period.
When a stock option can be exercised?
There are two kinds of options: American-style options and European-style options. American options can be exercised at any time up to the maturity of the option, whereas European options are exercised toward the end of the contract.
Can you rollover an esop to an IRA?
ESPP is an option given to employees to purchase companys stock out of their after tax wages and salaries at a discounted price. while ESOP is not in lieu of wages/salaries it is in the form of a call option which can be exercised at a predetermined date.
What is an American option?
In finance, an American option is an option which can be exercised at any date between the issue date and the expiry date.
What is a Bermudan option?
A Bermudan option is an option in finance which can be exercised at specific dates between the issue date and the expiry date.
What is the difference between writing a call option and buying a put option?
In both cases, you will have to provide the stocks to the counterparty if the option is exercised. There are two differences. First is the nature of the option. Calls are exercised when the stock spot price exceeds the call's strike price. Puts are exercised when the stock spot price is below the put's strike price. The other is, if you write a call you don't get to decide whether it gets exercised--the buyer does. If you buy a put, the choice to exercise it is yours.
Can you evict a tenent with a option to purchase?
can you evict with a option to purchase
Is an option to purchase a codicil?
I am very curious about this too. If I were to sign an Option to Purchase, and then pass away AFTER signing the option to purchase, Is the signed Option to Purchase sufficient evidence after my death that I intended to purchase the property while i was alive?
What is exercising a stock option?
Exercising options is done by the option buyer. If the buyer exercises a put, he is selling to the option writer the stock. If a call is being exercised, he is buying the stock from the writer.
When is a contract option may be exercised?
you can put obtion when you see the flacuaton in rapid market.
How large can a lease option be?
Lease Option Deals can help a Buyer buy and a Seller sell."How large can a lease option be?"It can be used for Residential or Commercial Properties. So the answer is the size can be infinite.If the Buyer wants to buy on an option to purchase, he generally has a lease agreement along with an option to purchase, stating how long the time period of the option is, and what the Future Purchase Price is going to be. A Memorandum of Option can protect the option once recorded at the County Court House, thus clouding the title.If the Seller wants to sell on an option to purchase, he generally offers a lease agreement along with an option to purchase, stating how long the time period of the option is, and what the Future Purchase Price (FPP) is going to be. The FPP can be tied to a Future Appraised Value, from an accredited appraiser. See http://en.wikipedia.org/wiki/Appraisal_Institute.Seller getting a New Home MortgageIf the former residence is now an Investment Rental Property, most mortgage brokers and direct lenders will accept 70% of the cash flow as income coming from the old residence (now an investment property), allowing the Seller to finance a new home mortgage. It is often possible to charge 2 payments, taxable rent income (say $600 per month) and an additional 30% as a non-refundable monthly option payment (non-taxable), to be subtracted from the Future Purchase Price if and when the option is exercised. This would effectively raise cash flow and enhance borrowing for the second home.Non-Refundable Option ConsiderationThe "down payment" or option consideration should be at least 3% of fair market value and non-refundable to compensate the Seller for taking the property off of the market. The 3% Option Consideration can be offered in the form of a Promissory Note.Taxation of Option ConsiderationAccording to Internal Revenue Code (IRC) Section 1234, all option consideration monies received are considered NON-TAXABLE until the option is EXERCISED or EXPIRED.Types of PropertiesMost popular are Single Family Residences (SFRs); also Single Use Commercial Properties, Mobile Homes and Condos utilize Lease Options.
What is involved in an option brokerage?
An option brokerage is a stock purchase made by an investment firm instead of by the person who holds the purse strings for the purchase. The firm charges the investor for the purchase.
