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Multi-Family and Apartment Investing

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Manny Carzola
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If one does a seller finance and seller signs contract , can they at anytime sell

Manny Carzola
Posted Aug 8 2023, 09:52

If one does a seller finance and seller signs contract , can they at anytime sell to another person and null your contract?

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Bill Brandt's profile image
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Bill Brandt#2 1031 Exchanges Contributor
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Replied Aug 8 2023, 10:15

Not after you file/record with the county. 

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Bjorn Ahlblad
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Bjorn Ahlblad
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Replied Aug 8 2023, 11:10

Not if you are the buyer and the deal has closed. Why would the seller want to? Selling the same property twice would be fraud. 

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Manny Carzola
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Manny Carzola
Replied Aug 8 2023, 11:25

Sure but one is a contract between you and the seller carrying the note and if he got an all cash offer he might want to get out of this. 

Keith J.'s profile image
  • Rental Property Investor
  • from Lombard, IL
  • Member since Jan 12, 2013

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Keith J.'s profile image
  • Rental Property Investor
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Keith J.
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Keith J.
  • Rental Property Investor
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Replied Aug 8 2023, 12:11

Prior to closing I guess he could.  What does the contract say about breaking the agreement prior to closing?

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Manny Carzola
Replied Aug 8 2023, 12:14

Oh this was a hypothetical question. Just in case for future. So I guess one has to have an iron glad contract written up by a good real estate attorney then documented at the county level. 

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Rick Pozos
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Replied Aug 9 2023, 05:10

There is no such thing as an iron clad contract. If someone backs out on you, you can sue, but is it really worth it?? Probably not unless you have lots of money invested into the due dilligence.

I buy from people who are VERY motivated. I have had a few people back out on me in the last 20 years. I really cant blame them. Rough houses, seller behind on taxes or mortgage about to lose their home. Someone comes and offers them 5k or 10k more. I try to close pretty quick so that does not happen. I also try to get to know the seller so that they do not do that to me. I have filed a memorandum of sale before the sale just to make sure the sale goes through or at least I get paid.