Legal Question in Real Estate Law in Texas
2 Party Agreement Real Estate Purchase
Iam purchasing a house and land from my brother.
There is 45,000.00 still owed to a lending institution.My brother wants to leave the house in his name and have me make the payments to him.(This will be done because my credit rating is probably not acceptable to the lending institution in order to transfer the note)What I need is some kind of legal binding agreement between myself and my brother stating that the house will be put in my name upon receipt of final payment.Lease purchase agreement?
Thank you for your assistance.
1 Answer from Attorneys
Re: 2 Party Agreement Real Estate Purchase
You may have some different options here. If the loan is assumable, then you can 'assume' the loan. This means that your brother and the bank can give you paperwork such that you are the purchaser / record owner of the home, and you would pay the mortgage. He would still be on the hook if you failed to pay, however.
Aside from that, you may wish to double check with some financial institutions, to see if you could buy the home with the brother as a guarantor. It's not too difficult, so long as the guarantor has good credit, and it may help you build your credit as well.
Failing that, there are other mechanisms such as contracts for deed, which I do not recommend for purchasers.