Can Buyer Sell If Buying On CFD
I recently had a question from a prospective buyer -- If they are buying from me on contract for deed, and want to sell in a few years, will they be able to? As I understand it, they will not hold title and will have a bit of trouble conveying the property.
Ted
[ Edited by Ted on Date 02/14/2004 ]
Ted,
Glad to meet you.
You could word in your contract that they have the right to sell with your permission. "Permission not unreasonably with held."
This might be used in a case where your buyer could not finance the property and needed an out when it came time for them to refinance.
Really it is up to you how you word your contract with the buyer.
John $Cash$ Locke
[ Edited by JohnLocke on Date 02/14/2004 ]
Well, I think he means how can you sell if you don't hold deed? I have bought with CFD and refinanced it later. The bank accepted me as owner if they allowed me to refi I guess.
Ricker,
Glad to meet you.
Normally in a Contract for Deed situation you hold the deed, your buyer does not get the deed until they fulfil the terms of the contract.
So in essense if your buyer wanted to sell and you gave them permission then you would sign off on the deed to their buyer.
In your case you may have had the deed in your name, otherwise your seller would have to sign off.
He who holds the deed owns the property.
John $Cash$ Locke
It's the same thing with flipping a property to a wholesaler, you get the property under contract and then market to sell to another investor even though you do not hold the deed to the property. You "control" the property and have the right to sell it for higher than you have contracted to buy the property. Same thing if your buyer's buying on CFD, he has an equitable interest in the property and if he found someone willing to buy the house for more than he is buying it from you for, then he can if your contract doesn't preclude that.