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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34735
Experience:  16 years real estate, Realtor. Landlord 26 years
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Can a seller do a lease with option to buy if they still

Customer Question

Can a seller do a lease with option to buy if they still have a mortgage on the property? They have purchased another property they currently occupy.
Submitted: 6 months ago.
Category: Real Estate Law
Expert:  Barrister replied 6 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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Can a seller do a lease with option to buy if they still have a mortgage on the property?

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Sure, there is nothing that would legally prevent this. The property is just still subject to the existing mortgage and if the seller defaulted on it, the bank could still foreclose and force a sale and the buyer/tenant could then sue the seller for breach.

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And obviously the sale price would have to be enough to pay off the property if the tenant exercised the purchase option so the seller could convey clear title to them..

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thanks

Barrister

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