Real Estate Attorney David Soble Reveals 7 Precautions to Exercise When Seeking Seller Financed Real Estate

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• Publié par: trafficmonsters
• Publié le: 21 août 2013
• Nombre de lectures: 13
• Langue: English

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http://www.proven-resource.com/
David Soble
Proven Resource LLC
888-789-1715 David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 There are thousands of real estate
transactions- residential and commercial -
that occur each year which do not involve a
traditional or commercial
mortgage from a bank
 Most often it is because a buyer does not
qualify for a traditional bank loan, the
property does not meet banking standards,
or because either the seller or the buyer
needs some financial or time accommodation
that traditional banks can't, or won't make. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 The most common form of non-traditional
financing is simply seller financing, which is
when the seller of real estate agrees to take a
defined amount of payments over a
predetermined time, before they deed the
property over to the buyer.
 These arrangements while useful, usually put
the buyer at a disadvantage. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 Many a buyer has come to me in their
moment of crisis, disappointed and surprised
to learn that the property they had been
making payments on is now in legal or
financial jeopardy because of something the
seller did, or didn't do.
 The buyer, having invested substantial
monies into a property, stands to lose it all
unless they bring legal action, or reach deep
into their pockets to cure the seller's
problem, now their problem. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 This scenario occurs more often than not and
buyers who have been through it know the
emotional and financial toll it takes to rescue
a property and one's investment when a
seller's ability to provide clear title is severely
impaired.
 Here are 7 precautions that a buyer should
take when purchasing a property using seller
financing.
David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 1. Have a written sales agreement. All real
estate transactions must be in the form of a
written agreement signed by both parties for
it to be enforceable in a court of law. Even an
agreement written on a crumpled napkin
bearing the signatures of both seller and
buyer has been upheld as a contract in
court. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 Without a written agreement, neither party
has guidelines as how to govern their
relationship with respect to the property and
with respect to themselves.
 Those who proceed without a written
agreement deserve the legal and financial
heart ache they may encounter in the future
to unravel the meaning behind what was
verbally stated and agreed upon in the past.
David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 2. Pull title. Make sure that the person(s) that
shows up on title are the sellers. If there are
others appearing as owners, it's not okay to
just to accept an explanation from the
seller.
 Once verified, get the proper parties and
supporting legal documentation that as the
buyer, you are purchasing from the correct
parties in title. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 All owners showing on title must be
the same as those who appear as sellers in
the agreement. Recently, I had a client who
had purchased a property owned by two
brothers. Unfortunately, one brother was
incarcerated in another state.
 The client was ready to pay off the balance of
the purchase price, but the incarcerated
brother who had never signed the purchase
agreement as was not willing to sell his
interest in the property. David Soble
Proven Resource LLC 888-789-1715 http://www.proven-resource.com/
 The selling brother was stuck, and the buyer
was irate. The matter was resolved, but not
right away.
 Never accept anything less than having all
owners of a property sign at the time of the
sales agreement; not a minute after.