Posted by Brandi_TX on January 29, 2001 at 24:20:53:
As always, you should run this by a proffessional in your own neck of the woods, but usually whoever inherets the property also inherets the contract the seller has with you. Meaning they must perform as the original seller would have.
This is assuming all docs were written up and executed correctly AND that the seller’s affairs were handled correctly.
As for the lender calling the loan due, this shouldn’t be a problem either because the law allows for a transfer of title to a relative upon death. (I don’t have the specific verbiage in front of me.)
Lease/Purchase w/ Seller that dies… - Posted by Paul-WA
Posted by Paul-WA on January 28, 2001 at 23:45:58:
If I have a L/P agreement with a seller on his property, and he dies suddenly what would be likely to happen to my position in the property? Could the lending instition call the loan due? How could this effect me or my T/B in a negative way? I do have a memo of option recordeed at the county recorders office.
Any and all possible scenarios are welcome.
Thanks,
Paul
By doing a L/P you would have had to buy and give the owner some money. While the heirs will have to honor the contract the opportunity is there to discount it so that the estate can be settled. Heirs usually don’t want cash flow they want cash. This won’t happen immediately but within some months I would be looking at asking them to discount if I can exercise the option and pay them off early.
Did you do a performance mortgage or put title into a land trust? Did you have you named as an additional insured?