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Richard
Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 54340
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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We are buying property from an individual who is financing

Customer Question

We are buying property from an individual who is financing the purchase, but are worried about the possibility of death of the seller before the purchase is complete. Seller is in poor health and in his late 80's. What language should we include in the contract to protect our investment?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.

Good evening. My name is ***** ***** I look forward to helping you.

Can you provide me a bit more information? Does the Seller have a mortgage on the property currently that will not be paid off? Thanks.

Customer: replied 1 year ago.
No there is no mortgage on the property. My understanding it has been paid off since 1971. He is however setting up a reverse mortgage on the balance of the property after we purchase this tract from him.
Expert:  Richard replied 1 year ago.

Thanks for following up. Once you purchase property you own it, and so any mortgage he puts on property he retains won't impact you. What you want to put in your loan documents is a specific provision that the death of the seller does not cause an acceleration of the loan. As long as you have that provision, the seller's heirs simply inherit the note and you pay them just as you did the seller.

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