Seller in a Subject-To offer
I received a subject-to offer which I understand the premise. What additional protections should a seller ask for in the subject-to contract? Also interested in using a real estate lawyer with understanding of creative financing (any recs?) for Orlando to help draft the agreement
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#3 All Forums Contributor
- Attorney
- Philadelphia
@John Liang Real estate that's priced correctly normally sells in arms length transaction. When you say the terms "meet the price goals" that screams you have unrealistic expectations of what your property is worth. I hate the risk exposure of subject 2 on the property seller in the first place but do you know what I hate even more? The risk exposure when the buyer in a Sub2 overpays. How are they exiting the loan you are still guaranteeing? What motivates them to keep the loan you are guaranteeing in good standing?
There’s nothing wrong with a real estate transaction that underperforms. In fact there’s normal. Don’t use Sub 2 believing you’re going to turn around the fortunes of the property. Sell arms length, learn from experience owning property that didn’t meet your expectations and move on.