Legal Question in Real Estate Law in California
commercial real estate purchase
I am going to purchase a gas station. We agree to draft two contract for sale of business and sale of real property(attached food mart and land of gas station). we agree that I will pay the monthly payment of original loan and when the loan pay off , I can get the title recorded under my name.I read the original document, the seller has a deed of trust with the bank, not mortgage. The title is hold by the trustee (the main branch of the lending bank) and the deed of trust states that any sale of real property or transfer of business ownership required the consent of the lender. What should I do, how to get the lender consent or assignment? Do I need a deed of trust with the seller also after the bank consent and assign the loan to me?
1 Answer from Attorneys
Re: commercial real estate purchase
There are differences between mortgages and notes secured by deeds of trust, but they have become increasingly minor and unimportant. In California, traditional mortgages are legal but very seldom used. Our preferred method of financing real property purchases is with a promissory note secure by a deed of trust on the property. A deed of trust is a special kind of animal, and is neither a deed nor does it create a true trust. You need a lawyer for your proposed purchase. There are simply too many issues to handle safely without a legal background, including matters related to title to the property, financing, transfer of franchises, and possible pollution of the site.
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