Posted on: 03rd Jul, 2009 09:39 pm
We are five sibling owning property with two wishing to be bought out by the tree others.
The two wishing to be bought out have agreed to a partial payment up front to make it easier on the others, with the balance due at a specified time(lets say in 5 years).
My question is once the property no longer has our name on it what is the assurance that can be put into a contract to ensure the remaining due is paid off on time.
It's my understanding we would hava lein on the property since money would be due us, but that is only enforcable when one sells or refinances, to my understanding. And if the holders choose to deed the property to a child, we could end up waiting for years.
Just wondering if there is something that could be written into
a contract that would protect the parties being partially paid at this time.
Hope that is not too confusing.
This is property in NYS
Thanks in advance for any advice
The two wishing to be bought out have agreed to a partial payment up front to make it easier on the others, with the balance due at a specified time(lets say in 5 years).
My question is once the property no longer has our name on it what is the assurance that can be put into a contract to ensure the remaining due is paid off on time.
It's my understanding we would hava lein on the property since money would be due us, but that is only enforcable when one sells or refinances, to my understanding. And if the holders choose to deed the property to a child, we could end up waiting for years.
Just wondering if there is something that could be written into
a contract that would protect the parties being partially paid at this time.
Hope that is not too confusing.
This is property in NYS
Thanks in advance for any advice
Hi daltonsjr,
You and your siblings can draft a contract with the help of an attorney mentioning the terms and conditions for the payment of the due amount. Both the buyers and the sellers will have to sign the contract and make it valid. In my opinion such a contract will protect both the parties.
You and your siblings can draft a contract with the help of an attorney mentioning the terms and conditions for the payment of the due amount. Both the buyers and the sellers will have to sign the contract and make it valid. In my opinion such a contract will protect both the parties.
You need 3 documents: a contract for the payment terms, a deed transerring to the new owners, and a trust deed you keep as a security interest to ensure payment. Both deeds must be recorded. If you understand what I just said, you could do it yourself. Otherwise, I would hire a local real estate attorney.
