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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 55325
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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If a seller is selling and financing to a buyer some land

Customer Question

If a seller is selling and financing to a buyer some land and a building that is commercial, do we only need to have a purchase agreement that includes also a promisary note?
Also in the agreement is thebuyer defaults is it normal for then to not receive back what they paid and put down?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Richard replied 1 year ago.

Good afternoon. My name is Richard. In addition to the promissory note and the the purchase agreement, you also need a document that gives you a lien on the land/building to secure the note. That document is a deed of trust which needs to be signed by your buyer, witnessed and notarized, and then recorded in the real property records of the city/county in which the property is located. Then, if the buyer defaults, you have the right to foreclose on that property and only if the foreclosure of the property pays you back everything you are owed, including penalties and interest, and the cost of the foreclosure, would the buyer be entitled to the surplus. If the foreclosure sale does not generate sufficient proceeds to pay you in full, you can also sue the buyer for any shortfall.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as OK, Good or Excellent (hopefully Good or Excellent). I thank you in advance for taking the time to provide me a positive rating!

Expert:  Richard replied 1 year ago.

Just to follow up, if you need a template for a deed of trust, let me know. Have a nice evening!

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