Legal Question in Real Estate Law in Oregon

Early payoff of homebuyers contract

I wanted to get a new loan(refinance) and payoff my current home contract early. I bought my home from a private party. He wouldn't accept the payoff(via refinancing) of the contract for my home (his reason was, he had already sold a home that year and didn't want to pay all the taxes he'd be due). I recently approched him again with the offer. He's only willing to let me pay him if I also pay him an additional $3000. on top of what I owe him on the contract, so he can pay the taxes HE'S due. The only thing I see in the contract reguarding payment is this statement: ''This contact is due on sale and can't be transfered or assumed without consent of seller''. He verbally said at original purchase, he'd let us pay off the house in 10 yrs.(it's been 12). Can he do this? Also I can't get a written statement from him, so I can prove I actually pay someone monthly for my home. Help! I can't even just refinance without a statement from the uncoperative man, who is a licenced real estate agent, and a police officer. What protection do I have?


Asked on 4/29/02, 11:04 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: Early payoff of homebuyers contract

Your ability to pay off a real estate contract is based on the contents of your contract. Oregon law does not give a buyer an automatic right to pay off a contract early. Many loans contain prepayment penalties to deal with the problem that your seller had (the increase in income taxes caused by an early pay off).

You should contact an attorney to have the contract reviewed to determine whether you have the right to pay this off early. Our office provides low cost initial consulations and would be happy to assist you.

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Answered on 4/30/02, 12:07 pm


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