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KJL LAW
KJL LAW, Arbitrator
Category: Real Estate Law
Satisfied Customers: 1294
Experience:  Attorney at Law Office of KJLLAW
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I had a 10 year loan agreement with an individual who is

Customer Question

I had a 10 year loan agreement with an individual who is financing land for me. The 10 year loan. Is over and I have been giving him just interest payments for for five months. I want to pay off the loan balance. He does not want me to he wants to continue to receive monthly income for his retirement. What is my recourse if he will not accept the cash?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  KJL LAW replied 11 months ago.

Good afternoon. If your note does not a pre-payment clause restricting you from paying off the amount due, then the holder of the note has no recourse, and he/she has to accept the full amount to payoff. If he/she refuses, after you send a letter stating that you would like to pay off the note, then the only way to force them to accept the payoff is a court action and an order from a judge. Check the language of your note to see if there is any payoff restrictions though.

I hope this helps with your question.

Customer: replied 11 months ago.
Thank you. There is a payoff penalty for the first three years but I'm in year 11. the note ran out in March of this year.
Expert:  KJL LAW replied 11 months ago.

Then there is no legal reason to deny the payoff in full.

Expert:  KJL LAW replied 11 months ago.

If you have any other questions, just ask. If not please rate the question for credit and tracking. If you don't rate the question, I will not get credit for my work.

Expert:  KJL LAW replied 11 months ago.

If you have any other questions, just ask. If not please rate the question for credit and tracking. If you don't rate the question, I will not get credit for my work.