Legal Question in Real Estate Law in Georgia

Transfer of Property to land trusts

Could you please tell me on how I would go about purchasing a property with a due-on-sale clause using a land trust and then immedialy placing a buyer to purchase the property under a 12 month lease option agreement, whereby i intend to wrap the underlying note and provide financing for my new buyer? Kindly stress the pros and cons in this transaction also what about mortgage insurance, and Refinancing? Many thanks


Asked on 3/30/98, 10:56 pm

1 Answer from Attorneys
Hugh Wood Wood & Meredith

Purchase RP out of a due on sales clause

I notice that you wrote this question on 3/31 and I received it today 4/15. The BBS provider is having internal delays that are not public info. Sorry about the delay.

Since I am licensed in GA, you may take my answer and follow through without providing us with all the appropriate docs.

This is the first Lawguru question I think I will pass on providing an online answer on. Primarily, because I do not understand your use of purchase a due on sale with a land trust.

How is the prior first mortgage being called? You are obviously contemplating providing a second in a wrap position. However, is the 1st called and paid off? Is the landtrust the new first mortgagor and you are wrapping financing on top of new paper (which I doubt). Anyway, I maintain a GA website on RE, if you will provide more concrete information concerning what you are doing and what you are trying to accomplish, I will endeavor to answer your inquiry. Please write me at [email protected]

If you do write back, I need more specific info. $ amounts. description of the 1st secuirty deed. county land is in. etc.

Hugh Wood

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Answered on 4/14/98, 10:59 pm


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