Posted on: 30th Mar, 2009 07:12 pm
My father is interested in selling his building that he owns outright. He has a buyer who is interested in owner financing. If he were to sell it to the buyer in this manner and he went bankrupt after one year and was unable to continue paying each month, doesn't my dad still retain owners rights to the building?
Hi
When you owner finance you tyrnasfer the title to the buyer through a deed. Thus I don't think the seller would still retain the ownership rights. However, this is where a contract would be useful as I believe every aspect of the owner financing, its terms and conditions would be mentioned there clearly. So, it would also be clearly stated in the contract what the owner's rights would be in such a condition as mentioned by you. Thus, it is wise of you to consult an attorney and get a proper contract drafted by him before you enter into an owner financing.
When you owner finance you tyrnasfer the title to the buyer through a deed. Thus I don't think the seller would still retain the ownership rights. However, this is where a contract would be useful as I believe every aspect of the owner financing, its terms and conditions would be mentioned there clearly. So, it would also be clearly stated in the contract what the owner's rights would be in such a condition as mentioned by you. Thus, it is wise of you to consult an attorney and get a proper contract drafted by him before you enter into an owner financing.
if your dad were to finance the purchase of that building, he would need to record a mortgage so as to protect himself from the buyer's default.
then, just as any other lender would do in the event of default, he would file an action to foreclose. doing so, he would then become the proud owner (again) of the building.
then, just as any other lender would do in the event of default, he would file an action to foreclose. doing so, he would then become the proud owner (again) of the building.
