Posted on: 03rd Jul, 2009 09:07 pm
We are five sibling owning property with two wishing to be bought out by the tree others.
The two wishing to be bought out have agreed to a partial payment up front to make it easier on the others, with the balance due at a specified time(lets say in 5 years).
My question is once the property no longer has our name on it what is the assurance that can be put into a contract to ensure the remaining due is paid off on time.
It's my understanding we would hava lein on the property since money would be due us, but that is only enforcable when one sells or refinances, to my understanding. And if the holders choose to deed the property to a child, we could end up waiting for years.
Just wondering if there is something that could be written into
a contract that would protect the parties being partially paid at this time.
Hope that is not too confusing.
This is property in NYS
Thanks in advance for any advice
The two wishing to be bought out have agreed to a partial payment up front to make it easier on the others, with the balance due at a specified time(lets say in 5 years).
My question is once the property no longer has our name on it what is the assurance that can be put into a contract to ensure the remaining due is paid off on time.
It's my understanding we would hava lein on the property since money would be due us, but that is only enforcable when one sells or refinances, to my understanding. And if the holders choose to deed the property to a child, we could end up waiting for years.
Just wondering if there is something that could be written into
a contract that would protect the parties being partially paid at this time.
Hope that is not too confusing.
This is property in NYS
Thanks in advance for any advice
Hi daltonsjr,
In case you put a lien on the property, you may have to wait for years to get the money, until the other title holders refinance the loan or sell off the property. If you want to get the money within a specific time, you will have to include such a clause in the contract. You need to get in touch with an attorney and get a contract drafted by him. He is the right person to advise you on the right kind of verbiage to be used on the contract. You should also keep in mind situations like a possible foreclosure on the property or filing of bankruptcy by any or all of the title holders and prepare the contract accordingly.
In case you put a lien on the property, you may have to wait for years to get the money, until the other title holders refinance the loan or sell off the property. If you want to get the money within a specific time, you will have to include such a clause in the contract. You need to get in touch with an attorney and get a contract drafted by him. He is the right person to advise you on the right kind of verbiage to be used on the contract. You should also keep in mind situations like a possible foreclosure on the property or filing of bankruptcy by any or all of the title holders and prepare the contract accordingly.