Legal Question in Real Estate Law in Georgia

The answer depends on the language of your mortgage, but yes, typically you are technically required to let your lender know if you plan on selling or giving any interest in your property away. The reason is simple -- your land is the lender's collateral for the bank. If you start giving away interests in that collateral (whether ownership interests, easement or licensing interest, etc.), then the collateral is worth less to the lender and they have less of a chance of recovering on their investment (your loan) if you default. For this reason, most mortgages will have a "DUE ON SALE" clause, which basically says that if you sell the property (and entering into a land sale contract would count as "selling"), you automatically default and the lender can "call" your loan (accelerate the entire amount due and foreclose your property if you don't pay up).

With that said, as long as the lender is getting it's money every month, they typically don't care where it comes from. If you enter into the land sales contract (which I think is not advisable), make sure YOU have enough money to pay the monthly mortgage in case your tenant does not.

Best of luck.******The above is for informational purposes only and does not create an attorney-client privilege.*******