I read your question to be asking about a sale when there is not a listing broker involved. If this is indeed the purpose of your question, the answer I would offer begins with a question: what is the owner offering? If the commission published is 4%, then the Broker representing the Buyer is in position to go for the gusto with his LOI. He may not get it, as an acceptance of an LOI is entirely in the hands of the Seller. However, wise Sellers would usually like to move their offered properties and if a legitimate candidate is presented will not try to let the commission stand in the way.
The second part of your question has to do with leasing. It is typical that we receive our commissions at the completion of an executed lease and the tenant taking possession. (Usually 50% at execution and 50% at possession). The reason is that we have completed our work at the point of possession, if the owner accepted the terms of the lease and verified the credit and credibility of the tenant. However, there are some owners that want the agent to take his or her commission on an installment basis, often at the beginning of each year in the lease term. This is a way for the owner to mitigate some cost if the tenant defaults on a lease during any one year. This is entirely negotiable, but not typical.
Good Luck Alan.... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: email@example.com
Dec 28, 2010