If i enter a owner finance agreement with me as the buyer, who has the right to sell?
I have more questions, i’ll add them as i think of them.
you bought it. you own it. you can sell it.
having said that, the previous owner/financier does NOT have to agree to assign the mortgage to the new buyer. Expect the new buyer to have to obtain financing.
Thanks for the answer!
Just to be a little clearer. How do i protect myself from them one day deciding to sell the property outright?
you file the deed of trust supporting the mortgage at the county clerk’s office (or whatever gub’mint entity tracks such things in your location.)
with the deed on file, they cannot convey title until it’s cleared by paying off the mortgage you hold.
ah… I might have skipped a few important steps.
the buyer should execute (sign) a promissory note AND a deed of trust in your favor guaranteeing the promissory note.
you file the deed of trust at the county clerk’s office.
since it’s a mortgage, you’ll need to track principal and interest, and send them a 1098 every year. report interest income on your 1040.
if they sell, the title company will discover the deed of trust and handle it from there.
Thanks MacWagner!!