Legal Question in Real Estate Law in Texas

dee to contract early buyout

deed to contract has statement ''cannot pay this off prior to 7.5 yrs elapsing...''. It has been 9.5 yrs and we want to get a lower interest rate financing,purchase a new home and rent out this property. It also has a prohibition against assignment limiting ''...assigning, selling, pledging, or mortgaging by the purchaser without first obtaining the written consent of seller''. Does this mean we cannot get a loan to buy him out without his approval?

If so, do we just send a letters requesting approval? Can we apply for loan approval before we talk to him?


Asked on 6/27/02, 9:56 pm

1 Answer from Attorneys
Michael Dover Michael A. Dover, PC

Re: dee to contract early buyout

Nothing would prevent you from applying for a mortgage. At this time, you don't have legal title to the property (i.e., the property is not in your name). The seller under the contract for deed will need to deed the property to you in connection with the closing of your mortgage. These events will usually take place simulataneously at a title company. In all likelihood, you will not be able to get your mortgage loan and then pay off the seller. You will probably need to close the transactions simulataneously.

Read more
Answered on 6/28/02, 9:42 am


Related Questions & Answers

More Real Estate and Real Property questions and answers in Texas