Brokerage Services

Real Estate Sales:

Portland Homes, Inc. is a full service Real Estate Brokerage. We are members of the local Multiple Listing Service, Portland Metro Association of Realtors, and Oregon Association of Realtors. We use all "Portland Metro Association of Realtors" forms and agreements.

Lease Options:

We are one of the few brokerages that offer this service. The concept is to structure a "Sale" with an extended closing. This service can be very advantageous for the Seller. The Seller receives non-refundable earnest money at the onset, a Security Deposit to secure the Lease Agreement and fair market rent for the property. The Buyer receives the benefit of a fixed sales price plus occupancy of the property. Buyers that have interest in a Lease Option typically cannot obtain financing now but will be able to obtain financing in the future, or may be coming into a large sum of money.
On a Lease Option we prepare three agreements. They are:

1. Earnest Money Agreement
2. Lease Option Agreement
3. Lease Agreement

Some suggestions when structuring a Lease Option:

• Non-refundable earnest money to be at least $3000.00. The strategy is to have adequate protection should the purchaser not close and either damage the property or need to be evicted. The Owners Homeowners Insurance should cover property damage (over the deductible) but it will not cover lost rent and fees due to an eviction. Also, Portland Homes, Inc. will charge $500.00 to prepare documents. This charge will be collected when documents are executed and earnest money delivered to escrow. We will collect the balance of our sales commission when the Sale closes.
• The term for the option typically is up to two years. At the end of the term, if the Purchaser has not closed, Owner may take back the property or re-negotiate the terms. This could be very advantageous and lucrative for the Seller.
• Rent credits are suggested to be in the form of credits towards Buyers closing costs. For example a contract may read,”Seller will pay $1000.00 towards Buyers closing cost if closing occurs between the 6th and 12th month. Seller will pay $1500.00 towards Buyers closing costs if closing occurs between the 13th and 18th month…” This will help to mitigate a claim from the Buyer, should the transaction not close, that they are entitled to a refund of the rent credits that have accrued.
• If the Buyer violates the lease agreement they can be evicted, and all agreements will be null and void. Seller will retain the Option money and take possession of the property.

Lease Options are popular with Owners who are interested in selling their property, but have been unsuccessful. Portland Homes, Inc., offers to these Owners the ability to market a property "For Sale, For Rent or for Lease/Option." We then are marketing the property to the first qualified occupant.