When selling a sub2 property via LO or OF - do you disclose you are not the one on the loan and that there is a remote possibility of the DOC? Should your buyer be aware of these facts in case something goes wrong?
Thank you
yes and in your contract with your buyer (you should have them initial the page) it states they are responsible for getting new financing if the DOSC is invoked, IF you cannot get the lender to stop. it is not put in so many exact words that there is ‘a loan in someone else’s name’, rather that there is ‘underlying financing’.
Is this one of those cases you just ask them to read and sign (they never read anyway) and would you be able to share the correct/complete verbage about the DOSC & the UF?
Thank you
Anyone :biggrin??
You’re gonna want them to sign off on this in some fashion. On the contract is OK but I advocate a separate disclosure. This is not a document you would want to create. You’re gonna want to get this handled by your attorney. He/she probably already has such a document on file if they close creative deals. I’d think many sub2/seller financing courses will have this disclosure as well (I know Ron Legrand’s does).