Full question:
I am purchasing a house in Louisiana. What other forms besides those in the' Real Estate Sales Package' on US Legal Forms will I need to complete this transaction legally? The details are property will be purchased with earnest money, and financed by the seller with no interest. Purchaser will pay for all fees including title insurance.
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Texas
Answer:
The answer will depend on all the circumstances involved, such as whether you will be transferring the deed at the time of sale. Seller financing often involves a contract for deed. A contract for deed, or land contract, is often used as an alternative means of financing the purchase price of property and whether the mortgage may be assumed by the buyer. The buyer does not receive an actual deed until payments are made under the terms of the contract for deed agreement. Until the buyer receives a deed, ownership isn't transferred and the property is subject to being foreclosed on if the mortgagee/owner defaults on the mortgage. The responsibility for payment for the property is a separate issue from the ownership of the property. You may wish to look at the Contract for Deed forms linked below. Other forms, such as escrow agreements or disclosures may be desired. We are unable to advise on how to structure a transaction. We are prohibited from giving legal advice, as this service provides information of a general legal nature.
If there is a mortgage on the property, the contract may violate a due-on-sale clause in the mortgage which the lender may or may not seek to enforce. Most lenders require that the mortgage or deed of trust contain a due on sale clause. This is an acceleration clause in a loan, calling for payment of the entire principal balance in full, triggered by the transfer or sale of a property. Such a clause permits a secured mortgage lender (federal, state or private) to call the entire unpaid loan balance due and payable immediately if the property securing the loan is sold, transferred, traded, gifted or otherwise disposed of without the lender’s prior written consent.
Please see the information at the following links for further discussion:
http://ezinearticles.com/?The-Advantages-of-Buying-With-Owner-Financing&id=1595064
http://www.curtepperson.com/seller.htm
http://www.ehow.com/how_8133_offer-seller-financing.html
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
