Hey BP Community,
Quick question. I have a seller who owns a free and clear property. We are going to do a seller financed deal. My question is this… During the term of the seller financing who maintains the title and deed of the property?
What type of Seller Financing are you doing?
That answer will dictate your answer. Is the Seller offering you a mortgage/deed of trust or a land contract/contract for deed? I suppose there could also be an option contract in that list as well. You get the point, need that answer to tell you who will hold title. In mortgage/deed of trust you will hold title. In the others, the Seller will hold title.
I would not do a contract for deed / land contract. The title will remain in the seller's name. They get sued or pass away or any number of things down the line and you are out! Do it with a note and deed of trust / mortgage or whatever it takes to get title in your or your entity's name. Good luck and congrats!
I agree with Steve Vaughan dude. Get the title in your name, otherwise, you mine as well be renting the property. Good luck.
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