Legal Question in Investment Law in North Carolina

Ensure payback

I am planning to loan a family member money to rehab a home that he is about to purchase and flip. He has promised to repay the loan plus 5K when he sells the renovated property in 120 days. How best can I legally ensure that he keep his word. I do not want to accept his offer to go on the mortgage with him.... because I would be responsible for the loan should he default. Is there a document that i could get him to sign that would have legal recourse?


Asked on 12/05/05, 1:22 pm

1 Answer from Attorneys
G. Joseph Holthaus III Law Offices of G. Joseph Holthaus

Re: Ensure payback

You need to have a document drawn up and effected and then recorded against the title. This may or may not obtain your desired result of being paid $15K upon sale.

Also you should understand that certain real estate sales may be void if not properly done and that "flipping" generally refers to an illegal practice. Obviously buying property as a speculative investment is legal.

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Answered on 12/06/05, 7:06 pm


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