Re: Legal question - When is a sale a sale? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on May 13, 1999 at 16:00:48:
Generally, when title passes. There are exceptions if the “seller” still has the benefit of the risks and rewards associated with the property- then considered “sold” when burdens (paying for insurance, assuming risk of loss, etc.) and benefits (profit potential, right to rents) pass. Typically, but subject to exact terms:
L/O- sold when exercise occurs
Owner Finance- when title passes
Contract for Dead- Upon burial;
Land Contract- REALLY depends on the terms.
Basic rule- transfer title and benefits/burdens of ownership. If you retain “too much” profit potential or risk, no sale.