Please Help--Promissory note?

I currently have a house under an option contract for 212K and trying to sell to an end buyer for 220K. I want to make this easy as possible and am trying to avoid assigning, double close, etc.

I’ve heard one can “release” their interest in a property by having the seller sign a promissory note to pay me the difference between the two contracts; I’ve also hear of getting paid as a lien holder?

Can someone please explain this process/ the steps involved?

Thanks in advance!!

It’s probably not going to work structured like that. What you’ll need to do is have the seller sign an agreement and invoice stating that you are to be paid the difference. You’ll want to send this to the closing attorney and have him or her verify this with the seller so that you can be paid an option fee out of the sales proceeds at closing. You’ll also need a clause in the contract between your buyer and the seller that states that the agreement is contingent on the seller obtaining a release of contract agreement with the prior buyer (you), this ties you to the deal.

It really works best if the attorney is on your team.

Isn’t having an option contract with the seller enough to prove my interest with the property? Or what about recording a memorandum at the local court house?

No. The seller doesn’t have to pay you on an option. Legally you have the right to get paid, but can you afford to enforce that right? That’s the question. You need to have as much documentation as possible to ensure that you have the chance of getting paid.

The value that you bring to the deal is your knowledge of how to structure and manage it.
You need to drive the entire process or you’ll never get paid. This means that you have to personally make sure that all parties do exactly what they need to do and control the flow of information. Don’t let the seller and buyer communicate directly and make sure that your buyers loan officer keeps you informed every step of the way. Make sure that both the buyer and seller gets exactly what they want, and you shouldnt have any issues.