Legal Question in Real Estate Law in Texas

We have an offer on our condo in Houston. The offer would possibly pay off the balance on our loan (if we chose to do that) and the portion above the cash offer would be owner financed. This is our residential homestead property. Our realtor will be able to handle the cash offer portion, but not the owner financing amount. What documents/ contracts/ considerations do we need in order to keep ourselves safe regarding the owner financing portion? Any additional information you have would be greatly appreciated.


Asked on 4/18/12, 10:11 am

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

You need a lawyer.

1. The odds are overwhelming that your current mortgage has a due on sale clause, meaning you must pay it off when you sell the condo.

2. Correct preparation of the documents for the sale, particularly those necessary to perfect a lien on the condo, such that you can foreclose if the buyer does not pay the owner financed portion, is beyond the abilities of most laymen, particularly if you are not experienced in real estate transactions.

Figure on $750 -- $1,250 in legal fees. It will be worth it.

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Answered on 4/18/12, 10:56 am


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