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  1. #1

    Lightbulb Selling house for $700K - Buyer wants pay $675K now, and $25K a year later.

    Hi everyone,

    I am selling a house, the sale price is $700K. A purchaser wants sign a Sale and Purchase Agreement for $675,000 (title transfers to their name).
    Then have another personal agreement between myself and them, which would involve a $300 pw "rent" payment which would reduce the 25K balance. Then in 1 yr they would pay the remaining balance. This agreement would place a caveat on the property (I guess for 25K).


    Put another way: they pay me $675K now, then pay me $300 each week as "rent" (which will count towards paying off the 25K balance. In 1 year this would leave an outstanding balance of say $10K which they would make as their final payment.

    Can any one give me any feedback on this? Is there a simpler better way to do it? They seem legit, but my concerns are naturally that last 25K and making sure I can actually enforce getting it.

    Thanks for any suggestions/feedback.

    thanks

  2. #2
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    823

    Default

    Tell them to borrow the money from the bank

  3. #3

    Default

    They can pay $675k now but title remains in your name until they pay the remaining $25k. You can rent the property to anyone for 19 months at $300 p/wk and then buyer pays remaining $25k and title is put in their name.

  4. #4

    Default

    Not any advantage to you the seller.
    Unless... buyer pays ??? $50k - $350k now, but title remains in your name and initial payment is not refundable if purchase is not completed. You rent the property at ???? $300 p/wk or whatever its worth to anyone and only when buyer pays remaining balance = $700k does title get transferred into their name...

    Unless you think $700 purchase price is a lot higher than market value. Then proceed with caution but don't have title put in their name until they have paid the full $700k and include a $ amount penalty if they don't complete the purchase...
    Get a great solicitor/lawyer that specializes in property transactions. Worth their weight in steak... you know what I mean

  5. #5
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,959

    Default

    Or you could require a mortgage on the property in order to agree to a transfer of title.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  6. #6

    Default

    They are claiming that they are maxed out at 675K - maybe approach bank for a personal loan of 25k? Will suggest that. thanks.

  7. #7

    Default

    Oh that's a great idea.. so like mortgage has more "power" that a caveat.. cause it would enforce payment.. and they fail to pay they would be in default. The mortgage would have to be in second place behind that Banks primary mortgage.. not sure how that affects my ability to get money out given I am second in line?

    Thanks Perry

  8. #8
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    14,959

    Default

    The days of second mortgages may be past.
    You need to check that with a lawyer.
    Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

  9. #9

    Default

    Quote Originally Posted by Perry View Post
    The days of second mortgages may be past.
    You need to check that with a lawyer.
    Ok, will do. thanks.

  10. #10
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,803

    Default

    The RTA does not protect you.


 

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