GMAC Approval letter clause

[Luiz Souza]

OK, here we go again!! Just received an approval letter from GMAC with a clause that reads: "THIS TRANSACTION MAY NOT INVOLVE A THIRD PARTY WHO RECEIVES A DEED PRIOR TO THIS CLOSING OR AFTER THIS CLOSING AND BEFORE RECORDING OF THE DEED TO THE PURCHASER".
I am using the Option Contract and the only thing recorded is the "Notice of Option".
Would you translate this to "I can never resell or transfer the deed to a third party?" And yes, this is a double C.
Any ideas, thoughts or suggestions?
Thank you.

[Scott Hubbard]

Originally posted by Larry Moore:

As I read it, it states that you cannot assign your option or transfer the deed to a third party until you have closed on the property and the deed has been recorded. So, no, not never, just not immediately with a double close. Whether or not it can be enforced has been addressed in other posts.

I agree with Larry. However, the key interpretation will come from the title company since they need to issue a title policy. Check with your title company.